THE WOODLANDS, Texas - Lexicon Pharmaceuticals , Inc. (NASDAQ:LXRX) and Viatris Inc. (NASDAQ:VTRS) have entered into an exclusive licensing agreement for the commercialization of the diabetes and heart failure drug sotagliflozin in territories outside of the United States and Europe. This partnership aims to extend the reach of sotagliflozin to patients in need across the globe.
Sotagliflozin, marketed as INPEFA®, was approved by the U.S. Food and Drug Administration in May 2023 for reducing cardiovascular risks in adults with heart failure or type 2 diabetes, among other conditions. Lexicon retains commercial rights within the U.S. and Europe, while Viatris will now be responsible for regulatory and commercialization activities in other global markets.
The agreement includes an upfront payment of $25 million from Viatris to Lexicon, with additional potential for regulatory and sales milestone payments, as well as tiered royalties on annual net sales. Viatris's Chief Commercial Officer, Corinne Le Goff, expressed confidence in leveraging their company's strong foundation in cardiovascular diseases to execute on the potential of sotagliflozin.
Dr. Mike Exton, CEO and Director of Lexicon, stated that partnering with high-quality companies is a critical component of their "Lead to Succeed" strategy. Lexicon plans to continue seeking strategic partnerships to bolster its development and commercial capabilities and advance its pipeline.
Sotagliflozin has been studied in approximately 20,000 patients across multiple clinical trials, addressing heart failure, diabetes, and chronic kidney disease. The drug is an oral inhibitor of two proteins involved in glucose regulation, SGLT2 and SGLT1, which affect glucose and sodium reabsorption in the kidneys and gastrointestinal tract, respectively.
This licensing deal underscores both companies' commitment to expanding access to innovative cardiovascular treatments. The information shared in this article is based on a press release statement from Lexicon Pharmaceuticals.
In other recent news, Lexicon Pharmaceuticals has been the focus of several significant developments. Piper Sandler and H.C. Wainwright have both maintained positive ratings for Lexicon, highlighting the potential of the company's drugs, particularly sotagliflozin. The firms are keenly awaiting the upcoming Advisory Committee meeting, which could lead to an expanded use of sotagliflozin for patients with type 1 diabetes and chronic kidney disease.
Lexicon also reported a net loss of $53.4 million in Q2 2024, with revenues of $1.6 million, primarily from INPEFA sales. The company has seen changes in its executive team, with Jeffrey L. Wade ending his tenure as president and COO, and Kristen L. Alexander stepping into the role of principal financial officer.
Lexicon is preparing for an FDA review of Zynquista and has initiated patient enrollment for the Phase 3 SONATA trial of sotagliflozin in hypertrophic cardiomyopathy. The company also anticipates top-line data for the LX9211 study in diabetic peripheral neuropathic pain by Q2 2025. These are among the recent developments at Lexicon Pharmaceuticals.
InvestingPro Insights
Lexicon Pharmaceuticals' recent licensing agreement with Viatris for sotagliflozin aligns with the company's strategic focus on expanding its global reach. This move comes at a critical time for Lexicon, as InvestingPro data reveals some interesting financial dynamics.
Despite a challenging financial landscape, with Lexicon reporting a negative gross profit margin and operating income in the last twelve months, there are signs of potential growth. An InvestingPro Tip highlights that analysts anticipate sales growth in the current year, which could be partly attributed to the recent FDA approval of INPEFA® and this new licensing deal.
The company's market capitalization stands at $688.64 million, reflecting investor interest despite current profitability challenges. Another InvestingPro Tip notes that Lexicon holds more cash than debt on its balance sheet, suggesting a degree of financial stability as it pursues its growth strategy.
Interestingly, Lexicon has seen a significant return over the last week, with a 9.82% price increase. This recent uptick could be indicative of positive market sentiment surrounding the Viatris partnership and the potential for expanded global commercialization of sotagliflozin.
For investors seeking a more comprehensive analysis, InvestingPro offers additional tips and insights that could provide a deeper understanding of Lexicon's financial position and future prospects.
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