Lexicon Likely Stuck For A Little While

One of the realities of biotech investing is that share prices can linger in no man's land when there's not much news to fire up the imaginations of investors. In the case of Lexicon Pharmaceuticals (NASDAQ:LXRX), a seemingly good initial launch of its first drug Xermelo is being greeted with little more than a "oh, that's nice … what else ya got?" by the market. What's more, with clinical data on sotagliflozin ("sota") more or less in hand for the Type 1 indication and a long wait for Type 2 data and/or FDA action, there's not a lot to really get the excitement going.

Lexicon shares have gone basically nowhere since my last update even though the biotech sector has done pretty well. I don't really see much to blame Lexicon for, as the clinical data that have been presented have been pretty consistent (if not a little better than expected) and the launch of Xermelo has gone well. Even so, with not a lot of mind-changing data on the way soon, it may take some patience to hang on through these doldrums. I continue to believe that Lexicon shares ought to trade in the high $20s on the basis of the value of both Xermelo and sota, but this isn't a biotech with the sort of sizzle that biotech investors often crave.

Click here for more:
Lexicon Likely Stuck For A Little While