05:53 PM EDT, 10/16/2024 (MT Newswires) -- Lexicon Pharmaceuticals ( LXRX ) will get an upfront payment of $25 million from Viatris ( VTRS ) for an exclusive license to commercialize sotagliflozin outside of the US and Europe in all indications.

Sotagliflozin is a medication used to reduce the risk of death and hospitalization in adults with heart failure or type 2 diabetes, chronic kidney disease, and other cardiovascular risk factors. The drug was approved the US Food and Drug Administration in May 2023, Lexicon said Wednesday in a statement.

Under the licensing accord, Lexicon is eligible for potential regulatory and sales milestone payments as well as tiered royalties on annual net sales.

Lexicon holds sole commercialization rights for the drug in the US and Europe. The company will provide clinical and commercial supply of sotagliflozin to Viatris ( VTRS ) at a transfer price.

Shares of Lexicon fell 1% in recent after-hours activity, and Viatris ( VTRS ) dropped 0.2% in the regular session.

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