Years of disappointment and misleading guidance from prior management put Lexicon Pharmaceuticals (NASDAQ:LXRX)
in a deep hole with respect to Street sentiment, but the company's
execution is helping it slowly dig its way out. This year (2016) should
see the company get its first product approved by the FDA, as well as
key pivotal data on the Type 1 diabetes program.
While I'd
certainly count myself in the camp of "long-suffering investors", I'm
still generally more bullish on Lexicon than the sell-side. I believe
sales of the company's lead drug telotristat etiprate can total more
than $500 million at peak, supporting a fair value above today's price
on its own. There's considerably more room for debate about the
potential (and potential value) of Lexicon's Sanofi-partnered (NYSE:SNY)
diabetes program, not to mention Lexicon's future R&D development
plans, but these shares look like a risky play with an interesting skew
to outsized potential gains.
Read more here:
Lexicon Moving Forward, But Nobody Really Seems To Care
No comments:
Post a Comment