Back To "Hurry Up And Wait" With Lexicon

The frustrating reality for a lot of biotech shareholders is that while these stocks can enjoy strong runs on thesis-altering data announcements, a lot of time as a biotech investor is spent waiting. Such is the case for Lexicon Pharmaceuticals (LXRX) today. Whatever commercial sales potential remains in Xermelo for its current on-label indication of carcinoid-related diarrhea, it’s going to take time to develop. Likewise with follow-on opportunities in neuroendocrine tumors (or NET) and biliary tract cancer, new drug opportunities like LX9211 in pain, and whatever management may try to advance from its preclinical assets.

The “but” is that Lexicon’s clock is ticking. The company has the cash to see if there’s something to the idea of using Xermelo in those expanded oncology indications and LX9211 in pain, and management still has some cards to play with sotagliflozin at the FDA. On top of that, perhaps management will find some alternatives for restructuring debt maturities in 2021 and 2022. The shares do still have speculative value, but it’s tied to largely to the clinical development process now.

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Back To "Hurry Up And Wait" With Lexicon