(Reuters) – French drugmaker Sanofi SA said on Friday it had terminated its partnership with Lexicon Pharmaceuticals Inc to develop and manufacture a drug for use with insulin in patients with type 1 and type 2 diabetes.

Lexicon shares fell nearly 40% in extended trading.

Sanofi said the termination of the partnership comes after the results of a late stage study of the drug, sotagliflozin.

However, trials of the drug will continue without Lexicon, Sanofi said. [nGNX6l9qVW]

(Reporting by Uday Sampath in Bengaluru; Editing by Anil D’Silva)

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