To maximize the productivity of our platform technology, we have entered into several research and development collaborations.  We have an active alliance management group that focuses on maximizing the value of the assets in any collaboration.  Our dedicated alliance managers provide a solid foundation for accomplishing collaboration objectives and maintaining dependable relationships with our partners.  This has translated into a successful track record of executing and delivering on our current alliances.




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.

Under the alliance, we received an up-front payment from Bristol-Myers Squibb and we are entitled to receive research funding during the alliance's five-year research term.  For each drug developed and commercialized by Bristol-Myers Squibb from the alliance, we will also receive clinical and regulatory milestone payments and royalties on sales.

In May 2006, Bristol-Myers Squibb extended the target discovery term of the alliance for an additional two-year period through December 2008.  As of January 2008, more than 10 targets have been selected to move forward in drug discovery.




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.  The alliance was expanded in 2005 providing Lexicon with 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. 

Under the expanded alliance, 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.  As of January 2008, Lexicon has progressed two lead programs into preclinical research for dyslipidemia and metabolic disorders. 


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. 

We received an up-front payment from Organon in exchange for the exclusive right to co-develop antibody and protein products that modulate the 300 selected genes.  We will also receive research funding for Organon's share of the collaboration's costs during the four-year target function discovery portion of the alliance.  To date, more than five targets have been selected and two lead programs have advanced into preclinical research.




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 our first three 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 its leading 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.  As of January 2008, Takeda has selected one target for drug development.