Lexicon, Bristol-Myers select development candidate for neuropathic pain

Both the firms will advance the development candidate through IND-enabling studies to prepare for the initiation of clinical trials.

As part of the deal, BMS has the first option to receive exclusive clinical development and commercialization rights upon the start of Phase I clinical trial, subject to the payment of milestones and royalties to Lexicon.

Lexicon Pharmaceuticals president and CEO Lonnel Coats said: "The selection of this very promising drug candidate for neuropathic pain marks the culmination of a long-standing and highly productive collaborative effort between Lexicon and Bristol-Myers Squibb.

"We look forward to bringing innovation from this novel mechanism to patients in an area of high unmet need."

In December 2003, the companies entered a drug discovery alliance to discover, develop and commercialize small molecule drugs in the field of neuroscience.

Lexicon started the collaboration with multiple neuroscience drug discovery programs at various stages of development and used its gene knockout technologies to discover additional drug targets in the neuroscience field.

The two companies are working together on an exclusive basis to identify, characterize and carry out the nonclinical development of small molecule drugs.

During the target discovery portion of the alliance, which expired in October 2009, Lexicon received $86m in upfront payments and research funding during the target discovery portion of the alliance.

Additionally, Lexicon is also eligible to receive clinical and regulatory milestone payments up to $76m for each drug developed by BMS under the alliance.