Lexicon Pharmaceuticals (LXRX)
is now in a “hurry up and wait” limbo, as the company waits for clarity
on its dispute resolution petition with the FDA regarding Zynquista in
Type 1 diabetes and as investors wait for more information and clarity
on the clinical profile of Zynquista in Type 2 diabetes and Lexicon’s
efforts to re-partner the drug.
For now, I believe
$4/share is still a pretty fair value for Lexicon shares. A manageable
path to approval of Zynquista in Type 1 diabetes would be a significant
value-driver for the shares, as would any improvement in the apparent
clinical profile of the drug in Type 2 diabetes. Favorable data from the
Xermelo biliary tract cancer study or LX9211 in pain would likewise be
positives.
Said differently, there are a lot of
things that could go right (and go right relatively quickly) for Lexicon
and drive a much higher share price, but I believe shareholders need to
go in with their eyes open to the downside risk if those favorable
outcomes don’t develop.
Click here for more:
Lexicon Waiting For Clarity On Its Diabetes Franchise
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