Lexicon receives $20 million in Genentech collaboration

Lexicon received the first of these payments for the completion of the analysis of the physiological and behavioral functions of the final set of targets selected from Genentech’s secreted protein discovery initiative (SPDI) program.

The second payment is related to the delivery of data from advanced research already conducted by Lexicon to further elucidate the functions of certain potential therapeutic proteins and antibody targets.

The companies recently expanded their collaboration. Under the new alliance Genentech has granted Lexicon the exclusive right to develop and commercialize drugs modulating up to six of the targets included in the alliance.

Genentech retains an option on the potential development and commercialization of these drugs under a cost and profit sharing arrangement, with Lexicon having certain conditional rights to co-promote drugs on a worldwide basis.

Lexicon will conduct additional advanced research over the next three years and will receive research funding from Genentech for that purpose.

“In our expanded alliance, Lexicon will be performing advanced research to validate a broad subset of targets included in the SPDI program,” said Dr Arthur Sands, president and CEO of Lexicon. “We are delighted to have the continued opportunity to work with Genentech to advance this high quality portfolio of drug targets.”