Teacher:Generate an explanation for the given claim using the provided supporting material from the paragraph. Please consider the following points while generating an output. 1) The claim will always have supporting proof in the paragraph, and the paragraph will have a clear point of view supporting the claim. 2) There can be instances where direct correlation to the claim is not available. Make use of the sentences in the paragraph to provide a corresponding output supporting the claim. 3) The explanation should be at least one and at most twelve sentences long.
Teacher: Now, understand the problem? Solve this instance: Paragraph: Shares of Lexicon jumped 37.8% to $2.37 in after hours trading. Under the terms of the settlement, Sanofi will pay $208 million upfront and the remainder within twelve months to Lexicon, which was eligible to receive up to $1.4 billion in milestone payments under the partnership. The four-year partnership was terminated by Sanofi in July after the results of three late-stage studies of Zynquista, which is being developed as an add-on to insulin for diabetic patients. Lexicon will regain global rights for the development and commercialization of Zynquista in both type 1 and type 2 diabetes, the company said in a statement. The drug has been approved in the European Union for use in type 1 diabetic patients but failed to win U.S. approval in March, months after a panel of experts raised concerns of the risk of diabetic ketoacidosis (DKA). DKA is a life-threatening condition in which acids called ketones build up when the body starts to use fat instead of glucose as a source of energy. Claim: Sanofi to pay Lexicon $260 million for terminated partnership.
Student:
Lexicon Pharmaceuticals Inc said on Tuesday France's Sanofi SA will pay the drugmaker $260 million for the termination of their partnership to develop diabetes drug Zynquista.