(Alliance News) - BioPharma Credit PLC said Wednesday the termination of an alliance between Sanofi SA and Lexicon Pharmaceuticals Inc enhances the collateral value behind its loan to Lexicon.
BioPharma - a pharmaceutical debt investor - funded USD124.5 million of a USD150 million loan to Lexicon, which matures in 2022. This loan is secured on "substantially all" of the assets of Lexicon, including its rights to the Zynquista diabetes drug.
On Monday, Sanofi and Lexicon terminated an alliance for the development and commercialisation of Zynquista - the brand name of sotagliflozin - as well as a settlement of disputes.
Under the deal, Lexicon regained all rights to Zynquista and assumed all responsbility for development and commercialisation of the type one and type two diabetes treatment. Sanofi also paid Lexicon USD260 million.
On Wednesday, BioPharma said it believed that the "settlement announced by Lexicon further enhances the value of the collateral supporting the loan" issued by BioPharma to Lexicon.
Shares in BioPharma closed 0.5% higher at USD1.02 in London on Wednesday.