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.
Read more here:
Steady As She Goes For Lexicon Ahead Of Life-Changing Events
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