- Lexicon Receives $160.4 Million at Closing
- Eligible for Up to $65 Million in Milestone Payments Plus Mid-Teens Royalties on Net Sales of XERMELO in Biliary Tract Cancer
Substantial Debt Reduction with Full Repayment of Secured Loan
Lexicon Pharmaceuticals, Inc. (Nasdaq: LXRX) announced today the completion of the sale of Lexicon’s rights, title and interest in XERMELO® (telotristat ethyl) to TerSera Therapeutics LLC.
Lexicon received $160.4 million in cash at closing, comprised of a $155 million upfront payment and additional payments for inventory and other closing considerations. Lexicon may receive additional milestone payments of up to an aggregate of $65 million for the development and commercialization of telotristat ethyl in patients with biliary tract cancer. Additionally, Lexicon will be eligible to receive mid-teens royalties on net sales of XERMELO in biliary tract cancer. In connection with the transaction, TerSera offered employment to 28 Lexicon employees. Lexicon plans to realign its business around its research and development assets, with a focus on its LX9211 neuropathic pain program, now in Phase 2 clinical development, while substantially reducing its debt by fully repaying its $150 million secured term loan.
Source: Biospace