To maximize the productivity of our platform technology, we have entered into several research and development alliances.  These successful discovery alliances have resulted in numerous targets being selected and advanced into ongoing drug discovery programs.





Bristol-Myers Squibb Company.  Established in 2003, the alliance with Bristol-Myers Squibb was formed to discover, develop and commercialize small molecule drugs in the neuroscience field.  Using Lexicon’s gene knockout technology, we jointly identify drug targets with promise in neuroscience.  For selected targets, Lexicon and Bristol-Myers Squibb work together on the preclinical development of small molecule drugs, and share the work and costs of the joint programs.  As compounds resulting from the alliance enter clinical trials, Bristol-Myers Squibb will have the first option to assume full responsibility for clinical development and commercialization.

For each drug developed and commercialized by Bristol-Myers Squibb from the alliance, we will receive clinical and regulatory milestone payments and royalties on sales.




Genentech, Inc.  In 2002, we established a drug discovery alliance with Genentech to validate and conduct advanced research on a broad subset of targets included in Genentech's Secreted Protein Discovery Initiative (SPDI) program using our proprietary gene knockout technology.  Lexicon has the option to develop and commercialize antibody and protein drugs modulating up to six targets identified through the joint program.  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 and Genentech receive reciprocal milestone payments related to the development and regulatory approval of certain drugs under a cost sharing development arrangement.  Products may be developed and subsequently commercialized by either Lexicon or Genentech.   


Organon.  In 2005, we established an alliance with Organon (subsequently acquired by Schering-Plough) to jointly discover, develop and commercialize novel antibody and protein drugs.  The alliance is based on 300 jointly selected human genes and their mouse counterparts that encode potential secreted proteins or antibody targets.  Lexicon is responsible for the creation and analysis of mouse knockouts of each of the 300 genes to identify biologic mechanisms associated with promising targets.  We will jointly select targets for further research and development and will share costs and responsibility for research, preclinical and clinical activities, and collaboration product revenue. 

To date, multiple targets have been selected and one lead program has advanced into drug discovery.





Symphony Icon, Inc.  In June 2007, we established a product development collaboration with Symphony Capital Partners, L.P and its co-investors to establish Symphony Icon, a newly-created company to fund and accelerate the development of three of Lexicon's drug candidates:  LX6171 for cognitive disorders, LX1031 for irritable bowel syndrome, and LX1032 for symptoms associated with carcinoid syndrome.  The alliance provides Lexicon with clinical development insight in addition to dedicated funding for clinical development of these programs.  Under the arrangement, $45 million was provided to Symphony Icon, which holds the license to the intellectual property of the three drug candidates.  We retain the exclusive right to reacquire the drug candidates at any time during the final three years of the four-year development period.  Lexicon is primarily responsible for the development of the drug candidates under the oversight of Symphony Icon's development committee, comprised of an equal number of representatives from Symphony and Lexicon. 





Takeda Pharmaceutical Company Ltd.  In 2004, we established an alliance with Takeda to discover new drugs for the treatment of high blood pressure.  In the collaboration, Lexicon used its gene knockout technology to identify drug targets that control blood pressure.  Takeda is responsible for the screening, medicinal chemistry, preclinical and clinical development and commercialization of drugs directed against targets selected for the alliance, and will bear all related costs.  Takeda will make research milestone payments to Lexicon for each target selected for therapeutic development.  In addition, Takeda will make clinical development and product launch milestone payments to Lexicon for each product commercialized from the collaboration.  Lexicon will also earn royalties on sales of drugs commercialized by Takeda.  To date, Takeda has selected one target for drug development.