( ls in which certain genes have been alt...)Lexicon-Genentech Collaboration Yields Potential Therapeutic,Targets,Health

ls in which certain genes have been altered in order to discover the physiological and behavioral effects that result from the loss of the functioning protein encoded by the disrupted gene. Lexicon's gene knockout technology is being employed in the Company's Genome5000(TM) program to discover the physiological and behavioral functions of proteins encoded by 5,000 genes believed to be pharmaceutically important. To date, Lexicon has completed analysis of approximately 80% of these genes, and has identified and validated more than 100 potential antibody and small molecule targets with promising profiles for drug discovery. Two drug candidates discovered by Lexicon against such targets, LX6171 for cognitive impairment and LX1031 for irritable bowel syndrome, have entered the clinic. LX6171 and LX1031 mark the first two clinical candidates for Lexicon's 10TO10 Program, an initiative to move ten drug candidates into human clinical trials through 2010.

The Lexicon-Genentech Collaboration

Lexicon's drug discovery collaboration was initiated with Genentech in December 2002 and expanded in November 2005 to include the advanced research, development and commercialization of new biologic drugs. Under the original collaboration, Lexicon used its gene knockout technology to discover the functions of secreted proteins and potential antibody targets identified through Genentech's internal drug discovery research. In the expanded collaboration, Lexicon is conducting additional, advanced research on a broad subset of those proteins and targets. Lexicon may develop and commercialize biotherapeutic drugs for up to six of these targets, with Genentech having exclusive rights to develop and commercialize biotherapeutic drugs for the other targets. Genentech retains an option on the potential development and commercialization of the biotherapeutic drugs that Lexicon develops from the collaboration under a cost and profit sharing arrangement, while Lexicon has certain condi
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