Lexicon will hold the rights to market telotristat etiprate in the US, Canada and Japan, which is being developed for the treatment of carcinoid syndrome.
Telotristat etiprate is an oral, small molecule inhibitor of tryptophan hydroxylase (TPH), which reduces peripheral serotonin production without affecting serotonin levels in the brain.
Lexicon CEO Lonnel Coats said: "This collaboration with Ipsen provides the opportunity to create added value for Lexicon and more effectively commercialize telotristat etiprate in markets around the world.
"Ipsen is a leader in the treatment of carcinoid syndrome and neuroendocrine tumours with Somatuline (lanreotide). Lexicon will benefit commercially from Ipsen’s substantial market presence in Europe and other countries in the licensed territory, and will benefit globally from coordination with Ipsen on medical and scientific matters."
Lexicon is currently carrying out Phase III clinical trials of telotristat for carcinoid syndrome, a serious condition caused by symptomatic neuroendocrine tumours, which produce large amounts of serotonin.
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The US Food and Drug Administration (FDA) granted fast track status and orphan drug designation for telotristat, while European Medicines Agency (EMA) awarded orphan drug designation.
Ipsen CEO Marc de Garidel said: "Ipsen is delighted to enter into a partnership with Lexicon in Europe and other countries."
Lexicon is eligible to receive more than $145m, including $23m upfront payment and additional payments contingent upon achievement of clinical, regulatory and commercial milestones, as part of the financial terms of the agreement.
The firm is also eligible to receive royalties on net sales of telotristat etiprate in the licensed territory.