Lexicon Pharmaceuticals Moving On From Diabetes And Pivoting Toward Clinical Candidates

While I’m sure die-hards will claim that Lexicon Pharmaceutical’s (LXRX) sotagliflozin still has a future, the company’s recent announcement that it would shut down the SCORED and SOLOIST long-term studies and indefinitely postpone an NDA filing due to an inability to find a partner, after getting its second appeal to the FDA on the Type 1 indication rejected, essentially brings that program to a close.

Theoretically Lexicon could still find a partner for this drug, but the reality is that it’s done as a meaningful contributor to the story. Still, the company’s cupboard is not entirely bare; management has reported encouraging retrospective efficacy for Xermelo in neuroendocrine tumors (or NET), will be reporting initial efficacy data for Xermelo in biliary tract cancer (or BTC) later this year, and will be starting a Phase II proof of concept study in diabetic peripheral neuropathy later this year.

The loss of sotagliflozin is meaningful, but the clinical potential of Xermelo and the pain drug LX9211 can support a fair value above today’s price. Investors should note, though, that these are high-risk opportunities and the company’s balance sheet/funding situation is far from ideal.

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Lexicon Pharmaceuticals Moving On From Diabetes And Pivoting Toward Clinical Candidates