Most readers will probably recall the “bring out your dead” scene from Monty Python and the Holy Grail, and I have to admit that Lexicon Pharmacueticals' (LXRX) sotagliflozin (“sota”) is more than a little like the man who didn’t want to go on the cart – certainly far from dead, and a lot more alive than I’d been willing to give it credit for in the past. I do still see some significant obstacles in place, but there is also still a fighting chance.
I applaud management’s decision to go forward with an NDA submission for sotagliflozin for heart failure; I believe future partners are likely waiting for the outcome of competitor studies, but there’s little to be gained by Lexicon in waiting around. Lexicon will be hard-pressed to market the drug effectively on their own, but that’s a problem for another day.
A lot of Lexicon’s prospective value now rests on what sort of label sotagliflozin will get, not to mention the labels that the competition gets, and what sort of partnership arrangement the company can strike. If the drug can get one-quarter of the market with a one-third split of the profits, a fair value of around $8.50 seems fair, but there are a lot of moving parts to the model.
Read the full article here:
Lexicon Still Working Hard To Maximize The Value Of Sotagliflozin
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