Under the expanded agreement, Lexicon will conduct advanced research on a broad subset of targets included in Genentech’s “secreted protein discovery initiative” program. These targets will be validated using Lexicon’s proprietary gene knockout technology.
Lexicon may develop and commercialize drugs modulating up to six of these targets. 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.
A total of $25 million will be given to Lexicon during the first three years of the agreement, comprising of upfront and milestone payments and research funding. Lexicon will also receive payments from Genentech upon achievement of milestones related to the development and regulatory approval of certain drugs resulting from the alliance that are developed and commercialized by Genentech.
The expanded alliance is designed to combine Lexicon’s novel target validation capabilities with Genentech’s research expertise. Lexicon will conduct advanced preclinical research to further elucidate the functions of certain potential therapeutic proteins and antibody targets identified in the companies’ initial alliance.