Lexicon down 32% after hours on Sanofi exit from sotagliflozin collaboration

After mixed results in two Phase 3 studies, Sanofi (NASDAQ:SNY) has decided to terminate its collaboration with Lexicon Pharmaceuticals (NASDAQ:LXRX) to develop, manufacture and commercialize Zynquista (sotagliflozin) for controlling blood sugar levels in type 1 and 2 diabetics.

In the SOTA-MET study, Zynquista showed a statistically significant reduction in HbA1c compared to placebo at week 26 in patients on metformin.

In SOTA-CKD3, Zynquista demonstrated a statistically significant reduction in HbA1c in the entire population of patients with moderate chronic kidney disease (CKD) and in the subpopulation of patients with kidney function just below the threshold for CKD (Stage 3A) but did not in the subpopulation with more profound CKD (Stage 3B).

In SOTA-CKD4, Zynquista failed to show a statistically significant effect on HbA1c compared to control at week 26.

All ongoing Phase 3 studies will continue.

LXRX is down 32% after hours.

https://seekingalpha.com/news/3482477-lexicon-32-percent-hours-sanofi-exit-sotagliflozin-collaboration