THE WOODLANDS, Texas, Dec. 20 /PRNewswire-FirstCall/ -- Lexicon Genetics Incorporated (Nasdaq: LEXG - News) announced today the completion of two performance milestones related to work it is doing in collaboration with Genentech, Inc. (NYSE: DNA - News). The completion of these milestones entitles Lexicon to two performance payments totaling $20 million.
Lexicon received the first of these payments in connection with its achievement of the fourth and final performance milestone in its initial collaboration with Genentech. This milestone relates to the completion by Lexicon 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.
Lexicon received the second payment under the extension and expansion of the Genentech alliance announced in December 2005. This milestone 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 identified in the companies’ initial collaboration. Lexicon will conduct additional advanced research over the next three years and will receive research funding from Genentech for that purpose.
Under the expanded 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.
In addition to upfront and performance milestone payments and research funding, Lexicon will 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. Lexicon is entitled to receive royalties on net sales of these products, provided they are not included in a cost and profit sharing arrangement. Genentech is entitled to receive milestone payments in the event of regulatory approval and royalties on net sales of products commercialized by Lexicon outside of a cost and profit sharing arrangement.
“In our expanded alliance, Lexicon will be performing advanced research to validate a broad subset of targets included in the SPDI program,” said Arthur T. Sands, M.D., Ph.D., president and chief executive officer of Lexicon. “We are delighted to have the continued opportunity to work with Genentech to advance this high quality portfolio of drug targets.”
About Lexicon Genetics
Lexicon Genetics is a biopharmaceutical company focused on the discovery and development of breakthrough treatments for human disease. Lexicon is systematically discovering the physiological and behavioral functions of genes to identify potential points of therapeutic intervention, or drug targets. Lexicon makes these discoveries using its proprietary gene knockout technology to model the physiological effects that could be expected from prospective drugs directed against novel targets. The Company has advanced knockout-validated targets into drug discovery programs in six therapeutic areas: diabetes and obesity, cardiovascular disease, psychiatric and neurological disorders, cancer, immune system disorders and ophthalmic disease. Lexicon is working both independently and through strategic collaborations and alliances to accelerate the development and commercialization of its discoveries. Additional information about Lexicon is available through its corporate website, http://www.lexicon-genetics.com .
Safe Harbor Statement
This press release contains “forward-looking statements,” including statements about Lexicon’s growth and future operating results, discovery and development of products, strategic alliances and intellectual property, as well as other matters that are not historical facts or information. These forward-looking statements are based on management’s current assumptions and expectations and involve risks, uncertainties and other important factors, specifically including those relating to Lexicon’s ability to successfully conduct preclinical development of its drug candidates and advance such candidates into clinical development, achieve its operational objectives, obtain patent protection for its discoveries and establish strategic alliances, as well as those relating to manufacturing, the regulatory process, intellectual property rights, and the therapeutic or commercial value of its drug candidates, that may cause Lexicon’s actual results to be materially different from any future results expressed or implied by such forward-looking statements. Information identifying such important factors is contained under “Factors Affecting Forward-Looking Statements” and “Business -- Risk Factors” in Lexicon’s annual report on Form 10-K for the year ended December 31, 2004, as filed with the Securities and Exchange Commission. Lexicon undertakes no obligation to update or revise any such forward-looking statements, whether as a result of new information, future events or otherwise.
Source: Lexicon Genetics Incorporated