Lexicon Thumped Despite Favorable Data

Readers who used to play SimCity 3000 might remember the frustration of seeing “Lack of chocolate sprinkles” as an explanation for setbacks in the game, and I'm reminded of that today seeing Lexicon (NASDAQ:LXRX) shares down over 10% on otherwise positive full data from its Phase III inTandem3 study of sotagliflozin in Type 1 diabetes.

Sotagliflozin isn't a flawless drug and the results of inTandem3 weren't perfect, but I don't believe they were so far out of line with prior trial results to justify the move in the share price. While chatter around other issues pertaining to Type 1 diabetes coming out of the EASD meeting may be contributing to the anxiety, I think the reaction is exceedingly negative and that these shares remain undervalued compared to the potential of sotagliflozin in Type 1 diabetes and Xermelo in carcinoid syndrome.

Continue here:
Lexicon Thumped Despite Favorable Data