Lexicon Pharmaceuticals

Lexicon Pharmaceuticals is a biopharmaceutical company focused on discovering and developing pharmaceutical products for treating various chronic diseases related to fields such as immunology, metabolism, cardiology, and ophthalmology. Lexicon scientists analyzed the role and function of roughly 5,000 genes as part of its Genome5000 initiative, and discovered more than 100 protein targets for treating various disorders. 

In May 2023, the company obtained FDA approval for its drug INPEFA (sotagliflozin), an oral tablet designed for treating heart failure, including in adults with type 2 diabetes. The company had plans to launch its drug to the US market in June 2023, with a wholesale price comparable to existing branded heart failure treatments (~USD 570 for a month’s supply). Furthermore, market analysts predicted that the medicine, which would compete with Eli Lilly's Jardiance (licensed in February 2022 for the same indication), would generate USD 112 million in revenue by 2025 and USD 576 million by 2028.

In addition, as of August 2023, the company had three drug candidates in its pipeline, including LX9211 in Phase IIb clinical trials to treat diabetic peripheral neuropathic pain. 

Key Customers and Partnerships

The company has partnered with leading pharmaceutical companies like Bristol-Myers Squibb (since December 2003), Genentech (in December 2005), N.V. Organon (since May 2005), and Takeda Pharmaceutical (since August 2004). Furthermore, the company partnered with French drugmaker Sanofi SA to develop the diabetes drug, Zynquista. However, in September 2019, Sanofi terminated the alliance and paid USD 260 million as termination fee to Lexicon.

Funding and Financials

The company began trading on Nasdaq in February 1998 under the ticker symbol “LXRX.” In June 2023, the company closed an underwritten public offering and concurrent private placement with expected gross proceeds to the company of USD 71.5 million. The funds raised were used toward the commercial launch of INPEFA.

For the three months ended March 2023, the company did not generate revenue. However, it reported a significant increase of 35% YoY in the net loss to USD 31.9 million. Its cash and cash equivalent as of March 2023 was at USD 105.9 million compared to USD 138.4 million in Q4 2022.