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By Dave Sebastian
Sanofi SA (SNY) on Friday said it is terminating its alliance with Lexicon Pharmaceuticals Inc. (LXRX) in developing, manufacturing and commercializing antidiabetic drug Zynquista.
Lexicon called the termination invalid and considers Sanofi to be in breach of contract.
Lexicon said the agreement requires Sanofi to continue to fund ongoing clinical trials for the drug for a period of time after termination.
"In the event of a valid termination of the Sanofi alliance, we will also look forward to regaining full rights to Zynquista in type 1 diabetes in the United States, as well as rights in the remainder of the world, notably including the European Union, in which Zynquista has already received approval," Lonnel Coats, Lexicon's president and chief executive officer, said in a statement.
The U.S. Food and Drug Administration in March rejected the drug application for Zynquista.
Sanofi, in a statement provided to The Wall Street Journal, said it terminated the alliance with Lexicon due to not reaching primary endpoints in Zynquista's Phase 3 studies.
"Sanofi believes our termination is valid," Sanofi said. "We have expressed willingness to work with Lexicon to ensure a smooth transition of the studies."
Sanofi on Friday also released topline results from three Zynquista Phase 3 trials in adults living with type 2 diabetes. Two of the trials demonstrated a statistically significant reduction in blood-sugar control in some patients. The other trial missed the statistical significance on blood-sugar control reduction compared with the effect of placebo in patients with stage 4 chronic kidney disease at 26 weeks.
Shares of Lexicon plunged 47.8% to $2.97 in after-hours trading on Friday. Sanofi shares were unchanged at $42.36 in the after market.
Write to Dave Sebastian at email@example.com
(END) Dow Jones Newswires
July 26, 2019 18:54 ET (22:54 GMT)
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