US-based global healthcare company Viatris Inc (Nasdaq:VTRS) announced on Wednesday that it has signed an exclusive licensing agreement with biopharmaceutical company Lexicon Pharmaceuticals Inc (Nasdaq:LXRX).

The agreement is for the marketing of Lexicon's sotagliflozin in all markets outside of the United States and Europe.

Sotagliflozin was approved by the US Food and Drug Administration in May 2023 to reduce the risk of cardiovascular death, hospitalisation for heart failure, and urgent heart failure visit in adults with heart failure or type 2 diabetes mellitus, chronic kidney disease, and other cardiovascular risk factors.

Under the terms of the agreement, Viatris will acquire rights to sotagliflozin in all global markets outside the US and Europe in exchange for an upfront payment to Lexicon of USD25m, and 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 be responsible for all regulatory and commercialisation activities for sotagliflozin in the licensed territories, while Lexicon will provide clinical and commercial supply of sotagliflozin to Viatris.