Lexicon Pharmaceuticals, Inc. (NASDAQ:LXRX) Stutters Poor Clinical Results


Dallas, Texas 01/02/2014 (FINANCIALSTRENDS) – Lexicon Pharmaceuticals, Inc. (NASDAQ:LXRX) in the first week of December struggled on the stock market at its drug LX1033 failed Phase 2 Studies. The top-line results for this drug, for treating Irritable Bowel Syndrome predominantly for diarrhoea failed at the test levels.

The results indicated that the improvement in patients when administered LX1033, was significant only in the long term. According to Lexicon, patients given placebo or LX1033, failed to show significant difference in the consistency of the stool as per statistics.  The failure of the top-line data has since placed Lexicon under tremendous pressure.

Disappointing prospects with LX 1032, LX 1033

Lexicon Pharmaceuticals, Inc. (NASDAQ:LXRX) has already reported failure of a drug aimed at treating rheumatoid arthritis and later LX 1032, which failed on its Phase II studies because of lack of efficacy in treating Ulcerative Colitis.

Despite the disappointing results for the above three prospective drugs, their impact on the company’s stockpile is not as high because of its more important diabetes inhibitor SGLT-1/-2 for LX 4211.  Currently, the drug maker is in need of a deep-pocket partner to conduct the Phase III study for the inhibitor.

Pressure builds – LX 4211 has to succeed

Lexicon Pharmaceuticals, Inc. (NASDAQ:LXRX) now is under tremendous pressure as other drugs fail and it increasingly heads towards becoming a single-drug company. The only other positive movement possible is with the carcinoid indicator for LX 1032. Therefore, it is critical for Lexicon to find a funding partner to complete Phase III studies for the LX 4211.

Earlier in December 2013, analyst Colin Bristow indicated that Lexicon was a under performer as the company showed ‘overvaluation.’ The contention for the ‘underperform’ was the lack of uniqueness in the diabetic inhibitor for its gain further inroads in the market segment. The target price was revised to $.150.