Lexicon Pharmaceuticals (NASDAQ:LXRX)
has gone through many odd twists and turns as it has tried to migrate
from a provider of drug targets to a developer of experimental
compounds. Like most biotechs, Lexicon has had several clinical failures
but has moved past those failures to continue developing the more
promising candidates in its pipeline. Included among those twists and
turns is an unusual ownership structure where an investor group
effectively controls the company by virtue of its 60% ownership of the
shares.
Adding to the strangeness is that the pipeline candidate
that gets the most attention for Lexicon is not necessarily its
highest-potential drug. While successful commercialization of
sotagliflozin would be a significant event, the odds of the company
gaining significant share in the large diabetes market aren't all that
favorable. On the other hand, telotristat etiprate gets less attention
but could actually be the more valuable drug to Lexicon today. As it
stands, I still believe Lexicon offers a good potential return in spite
of its high risk.
Read the full article here:
Lexicon Undervalued As It Approaches A Major Event
No comments:
Post a Comment