Lexicon Pharmaceuticals Inc.
10/16/2024 | Press release | Distributed by Public on 10/16/2024 14:38
Material Agreement Form 8 K
Item 1.01 Entry into a Material Definitive Agreement.
On October 16, 2024, we entered into an Exclusive License Agreement (the "Agreement") with Viatris Inc. ("Viatris") for the development and commercialization of sotagliflozin in all markets outside of the United States and Europe (the "Licensed Territory").
Under the Agreement, we granted Viatris an exclusive, royalty-bearing right and license under our patent rights and know-how to develop and commercialize sotagliflozin in the Licensed Territory. Viatris is responsible for using commercially reasonable efforts to commercialize sotagliflozin in the Licensed Territory pursuant to a mutually approved commercialization plan. Viatris will be responsible for all regulatory and commercialization activities for sotagliflozin in the Licensed Territory, as well as the conduct of any additional clinical trials required to obtain such regulatory approvals.
Under the Agreement, Viatris will pay us an upfront payment of $25 million. In addition, we are eligible to receive from Viatris (a) up to an aggregate of $12 million upon the achievement of specified regulatory milestones and (b) up to an aggregate of $185 million upon the achievement of specified sales milestones. We are also entitled to tiered royalties ranging from low double-digit to upper-teens percentages of annual net sales of sotagliflozin in the Licensed Territory.
We and Viatris will enter into a manufacturing and supply agreement pursuant to which we will supply Viatris's development and commercial requirements of sotagliflozin, and Viatris will pay an agreed upon transfer price for such supply.
The foregoing description of the Agreement does not purport to be complete and is qualified in its entirety by reference to the Agreement, which we expect to file as an exhibit to our annual report on Form 10-K for the year ending December 31, 2024.