THE WOODLANDS, Texas, Dec. 1 /PRNewswire-FirstCall/ -- Lexicon Genetics Incorporated (Nasdaq: LEXG - News) announced the expansion of its drug discovery alliance with Genentech, Inc. (NYSE: DNA - News) to include the advanced research, development and commercialization of new biologic drugs. Under the expanded alliance, Lexicon will conduct advanced research on a broad subset of targets included in Genentech’s Secreted Protein Discovery Initiative (SPDI) program and 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.
Lexicon will receive a total of $25 million in upfront and milestone payments and research funding during the three-year advanced research portion of the expanded alliance. 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. 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.
The expanded alliance is designed to combine Lexicon’s novel target validation capabilities with Genentech’s expertise in research, clinical development, biologics manufacturing and commercialization to advance the development of targets within Genentech’s SPDI program. 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. Genentech has granted Lexicon the exclusive right to develop and commercialize drugs modulating up to six of these targets. Two targets for metabolic disease have already been designated as Lexicon targets and are currently in preclinical research at Lexicon. Lexicon retains non-exclusive rights for the development and commercialization of small molecule drugs addressing the targets included in the alliance.
“The expansion of our alliance with Genentech reflects the success of our initial collaboration and is a validation of our gene knockout approach to defining gene function for drug discovery,” said Arthur T. Sands, M.D., Ph.D., president and chief executive officer of Lexicon. “The next phase of the alliance entails further advancing Genentech’s SPDI program and is a signal of our progress in biologic drug development. We look forward to working closely with a proven leader like Genentech in an effort to develop new drugs for patients in need.”
Lexicon Analyst and Investor Event:
Lexicon will discuss its expanded alliance with Genentech at its analyst and investor luncheon in New York City at noon today, Thursday, December 1, 2005, at the New York Palace Hotel. Dr. Arthur T. Sands, president and chief executive officer of Lexicon, will host the event. Materials from the presentation will be posted on Lexicon’s corporate website, http://www.lexicon-genetics.com .
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
