Lexicon achieves first performance milestone

Lexicon Genetics has completed the first performance milestone as part of its drug discovery alliance with Genentech.

'We are very pleased with the progress that we have achieved so far under this alliance,' said Dr Arthur Sands, president and chief executive officer of Lexicon. 'This milestone represents a key first step in the combination of Genentech's product portfolio of therapeutic proteins with Lexicon's industrial in vivo drug discovery capabilities to discover the medical value of these important therapeutic proteins.'

Lexicon established its drug discovery alliance with Genentech in December 2002 to discover novel therapeutic proteins and antibody targets.

Under the alliance agreement, Lexicon is using its target validation technologies to discover the functions of secreted proteins and potential antibody targets identified through Genentech's drug discovery research.

Genentech will have certain exclusive and non-exclusive rights for the research, development and commercialisation of therapeutic proteins and antibodies resulting from the collaboration.

Lexicon will retain certain other rights to those discoveries, including non-exclusive rights for the development and commercialisation of small molecule drugs. Lexicon received an up-front payment and is entitled to receive performance payments for its work in the collaboration as it is completed.

This milestone has triggered such a performance payment, the amount of which is not disclosed. Lexicon is also entitled to receive milestone payments and royalties on net sales of therapeutic proteins and antibodies for which Genentech obtains exclusive rights.