Lexicon Pharma acquires Symphony Icon, obtaining rights to gastrointestinal drugs for up to $90 million

US biopharmaceutical company Lexicon Pharmaceuticals revealed yesterday that it has bought Symphony Icon, thus reacquiring rights to several developing gastrointestinal drugs - LX1031, LX1032, LX1033 and the other drug programs subject to the collaboration.

Lexicon said it exercised a restructured purchase option under its drug development financing collaboration with fellow USA-based Symphony. The deal includes a $10 million payment upon closing and deferred and contingent payments worth about $50 million.

"The encouraging results we have obtained with our portfolio of serotonin synthesis inhibitors, LX1031 for irritable bowel syndrome, LX1032 for carcinoid syndrome and LX1033 for other gastrointestinal disorders, informed our decision to reacquire all development and commercialization rights to these promising drug candidates," said Arthur Sands, Lexicon's president and chief executive. "We have restructured our agreement with Symphony in a manner that enables us to both defer a sizable portion of the purchase option exercise price as well as make a significant portion contingent on the success of the drug candidates, allowing us to make payments as we receive licensing proceeds to fund them," Dr Sands explained.