A Weak Xermelo Ramp Continues To Weigh On Lexicon

If Neurocrine’s (NBIX) launch of Ingrezza in tardive dyskinesia is a good example of an excellent new drug launch, Lexicon’s (LXRX) ongoing struggles with Xermelo reflect the other side of the coin, as the company continues to see lower-than-expected patient interest, compliance, and ability to pay. At the same time, while the data on the company’s lead diabetes drug sotagliflozin remain quite good and the company has the backing of a large player in diabetes (Sanofi (SNY)), the Street remains quite skeptical regarding the drug’s prospects for gaining meaningful share in the sizable Type 1 diabetes market, let alone the much larger Type 2 market.

Lexicon shares continue to look undervalued to me, but investors have to at least consider the risk that this is a “value trap” and that Xermelo and sotagliflozin will never live up to the commercial potentials.

Continue here:
A Weak Xermelo Ramp Continues To Weigh On Lexicon