Thursday, January 5, 2012

Seeking Alpha: Lexicon Pharmaceuticals - A Worthwhile Speculation

With investors spoiled for choice in the biotech sector, it is easy for stocks to slide off the radar – particularly those who haven't long enjoyed major investment bank support or been willing to resort to dubious promoters. Although there is no such thing as a safe early-stage biotech, aggressive investors looking for something a bit off the beaten track may want to check out Lexicon Pharmaceuticals (Nasdaq: LXRX).

Trying To Make The Most Of A New Life
Lexicon actually traces its history back to the mid-90s when investor enthusiasm for all things genomic overrode good sense and allowed many dubious business models to come to the public market. Like Celera, Human Genome Sciences (Nasdaq: HGSI) and DeCODE Genetics, Lexicon thought it could establish a viable business model by selling or licensing genomic and proteomic information to large pharmaceutical companies like Bristol-Myers Squibb (NYSE: BMY) and Roche (Nasdaq: RHHBY.PK). Suffice it to say, this was a model doomed to fail and Lexicon opted to reorganize around its data and recast itself as biotechnology company, using its own data to identify potential therapies for significant diseases.

Read the full piece here:
Lexicon Pharmaceuticals: A Worthwhile Speculation

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