Life is going to get very interesting at Lexicon Pharmaceuticals (NASDAQ:LXRX) in the relatively near future. The company will know by the end of November whether the FDA will approve LXRX's lead drug telotristat etiprate ("telotristat"), and investors will get an initial look at top-line results of sotagliflozin in about one month.
Both of these qualify, in my opinion, as life-changing events for the company. Approval of telotristat is generally expected, and I believe the drug should generate over $400 million in peak sales, and accounts for about 60% of my estimated fair value. The remainder is tied to sotagliflozin, which has the potential to be a differentiated option for Type 1 and Type 2 diabetics and generate over $1 billion in peak sales. While I continue to believe that the telotristat opportunity is underappreciated by the Street, the reality is that strong sotagliflozin data is a "must have" for bullish sentiment on the stock at this point.
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Steady As She Goes For Lexicon Ahead Of Life-Changing Events