Lexicon Partners Viatris for Global Expansion of Sotagliflozin

Viatris Inc. (Nasdaq: VTRS) has entered an exclusive licensing agreement with Lexicon Pharmaceuticals for sotagliflozin in all markets outside the U.S. and Europe. This strategic partnership aims to expand the reach of sotagliflozin, a drug approved by the FDA in May 2023, which reduces cardiovascular risks in adults with heart failure or type 2 diabetes mellitus, chronic kidney disease, and other cardiovascular risk factors.


Viatris will pay Lexicon an upfront payment of $25 million, with additional potential contingent payments including regulatory milestones, sales milestones, and tiered royalties ranging from low-double-digit to upper-teens on annual net sales. Viatris will handle regulatory and commercialization activities in licensed territories, while Lexicon will provide clinical and commercial supply of sotagliflozin.

The tiered royalty structure impacts both companies' revenue projections. Viatris' revenue streams will benefit from the potential contingent payments and tiered royalties, while Lexicon's cash flow will be bolstered by the upfront payment and additional contingent payments.

The competitive landscape for sotagliflozin in licensed territories includes other cardiovascular treatments such as SGLT2 inhibitors and GLP-1 receptor agonists. Sotagliflozin's unique dual mechanism of action, targeting both SGLT1 and SGLT2, sets it apart from competitors and offers a potential advantage in the market.

Viatris' Global Healthcare Gateway® platform contributes to sotagliflozin's market penetration and success in licensed territories by leveraging the company's expertise in cardiovascular diseases and its extensive global network. This platform enables Viatris to effectively navigate regulatory environments and facilitate commercialization in diverse markets.

The agreement's potential for regulatory and commercial success in licensed territories affects the financial projections of both companies. Viatris' market reach and market share are expected to grow, while Lexicon's revenue streams will benefit from the expanded global presence of sotagliflozin.


In conclusion, the partnership between Lexicon and Viatris for the global expansion of sotagliflozin presents an attractive opportunity for both companies. The agreement's structure, competitive landscape, and the Global Healthcare Gateway® platform all contribute to the potential success of sotagliflozin in licensed territories. Investors should closely monitor the progress of this strategic alliance as it unfolds.