Lexicon Pharmaceuticals Edging Closer To 'Go Time' On Multiple Late-Stage Assets

Stephen Simpson 20.97K Followers Follow Summary Lexicon Pharmaceuticals (LXRX) is nearing multiple potential value-transforming events for sotagliflozin, and the shares have been strong since my last update. Sotagliflozin, targeting HCM and T1D, is the primary value driver; the pivotal SONATA-HCM Phase III readout is expected in 2027, and an NDA re-filing for T1D before year-end. Regulatory and commercialization risks arguably outweigh clinical risk, especially for T1D, as the company would have to commit considerable resources to commercialization to maximize the value of sotagliflozin. Risk-adjusted fair value is $4.50–$4.75 per share, with major de-risking events over the next year making LXRX interesting for speculative investors. dejan Jekic/iStock via Getty Images The eights months or so since my last update on Lexicon Pharmaceuticals ( LXRX ) have largely been a waiting game for this tiny biotech, as there isn’t a lot that the company can do This article was written by Stephen Simpson 20.97K Followers Follow Stephen Simpson is a freelance financial writer and investor.Spent close to 15 years on the Street (sell-side, buy-side, equities, bonds). Analyst’s Disclosure: I/we have a beneficial long position in the shares of LXRX either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.