Lexicon Genetics Incorporated has expanded its drug discovery alliance with Genentech Inc. to include the advanced research, development and commercialisation of new biologic drugs.

Under the expanded alliance, Lexicon will conduct advanced research on a broad subset of targets included in Genentech’s Secreted Protein Discovery Initiative (SPDI) programme and validated using Lexicon’s proprietary gene knockout technology. Lexicon may develop and commercialise drugs modulating up to six of these targets. Genentech retains an option on the potential development and commercialisation of these drugs under a cost and profit sharing arrangement, with Lexicon having certain conditional rights to co-promote drugs on a worldwide basis, informs a company release.

Lexicon will receive a total of $25 million in upfront and milestone payments and research funding during the three-year advanced research portion of the expanded alliance. Lexicon will also receive payments from Genentech upon achievement of milestones related to the development and regulatory approval of certain drugs resulting from the alliance that are developed and commercialised by Genentech. Lexicon is entitled to receive royalties on net sales of these products, provided they are not included in a cost and profit sharing arrangement.

The expanded alliance is designed to combine Lexicon’s novel target validation capabilities with Genentech’s expertise in research, clinical development, biologics manufacturing and commercialisation to advance the development of targets within Genentech’s SPDI programme. Lexicon will conduct advanced preclinical research to further elucidate the functions of certain potential therapeutic proteins and antibody targets identified in the companies’ initial alliance.

The release further states that Genentech has granted Lexicon the exclusive right to develop and commercialise drugs modulating up to six of these targets. Two targets for metabolic disease have already been designated as Lexicon targets and are currently in preclinical research at Lexicon. Lexicon retains non-exclusive rights for the development and commercialisation of small molecule drugs addressing the targets included in the alliance.

“The expansion of our alliance with Genentech reflects the success of our initial collaboration and is a validation of our gene knockout approach to defining gene function for drug discovery. The next phase of the alliance entails further advancing Genentech’s SPDI programme and is a signal of our progress in biologic drug development. We look forward to working closely with a proven leader like Genentech in an effort to develop new drugs for patients in need,” said Arthur T. Sands, president and chief executive officer of Lexicon.

Lexicon Genetics is a biopharmaceutical company focused on the discovery and development of breakthrough treatments for human disease.