Ipsen to commercialize Lexicon carcinoid drug ex-North America/Japan

French drugmaker Ipsen (Euronext: IPN) has entered into an accord with Lexicon Pharmaceuticals (Nasdaq: LXRX) to commercialize the US drug developer’s telotristat etiprate outside of North America and Japan, with a focus on the treatment of carcinoid syndrome.

Lexicon retains sole rights to commercialize telotristat etiprate in the USA, Canada and Japan. Under the financial terms of the agreement, Lexicon is eligible to receive up to $145 million, comprising $23 million upfront and additional payments contingent on achievement of clinical, regulatory and commercial milestones. In addition, Lexicon is also eligible to receive royalties on net sales of telotristat etiprate in the licensed territory.

Lexicon is conducting Phase III clinical trials of telotristat etiprate for carcinoid syndrome, a serious condition caused by symptomatic neuroendocrine tumors, which produce large amounts of serotonin. Carcinoid syndrome is characterized by severe diarrhea, flushing and, in some cases, heart valve damage. Telotristat etiprate has received fast track status and orphan drug designation from the Food and Drug Administration in the USA, and has received orphan drug designation from the European Medicines Agency.