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Lexicon Posts Lower-than-Expected Quarterly Loss
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Lexicon Posts Lower-than-Expected Quarterly Loss

Lexicon Pharmaceuticals (NASDAQ: LXRX), a biopharmaceutical company, reported a smaller-than-feared loss in the second quarter. However, shares of the company lost 1.1% on July 30 to close at $3.54.

The company incurred a loss of $0.13 per share in Q2, compared to the $0.16 loss per share estimated by analysts. The company reported a loss of $0.65 per share in the prior-year quarter.

Additionally, quarterly revenues were $0.2 million, down from $9.2 million recorded in the same quarter last year.

On a bright note, research and development expenses declined significantly on a year-over-year basis to $10.3 million, while selling, general, and administrative expenses decreased 44% to $7.9 million. (See Lexicon stock charts on TipRanks)

Lexicon CEO Lonnel Coats expressed his optimism, saying, “We remain on track to submit our New Drug Application (NDA) for sotagliflozin in heart failure late this year, with rising confidence in our opportunity to deliver unique value in an area of high unmet need.”

Coats added, “We have seen a meaningful pick-up in enrollment in our two Phase 2 proof-of-concept studies of LX9211 in neuropathic pain…the COVID-19 environment has improved relative to earlier this year, but not enough to achieve top-line results by year-end.  We now expect to have top-line results from these studies in the first half of 2022.”

Following the Q2 results and the company’s pipeline update, Needham analyst Joseph Stringer maintained a Hold rating.

Stringer said that Lexicon is likely to submit an NDA in the second half of this year for sotagliflozin in heart failure (HF).

“We think sotagliflozin’s potential in HF is intriguing, but await additional competitor data to more properly assess the drug’s full potential in HF,” the analyst added.

Meanwhile, the Street’s consensus rating on the stock is a Hold. That’s based on 2 Holds. Looking ahead, the average Lexicon price target stands at $5, putting the upside potential at about 41.2% over the next 12 months.

TipRanks’ Hedge Fund Trading Activity tool shows that confidence in Lexicon is currently Neutral, as the cumulative change in holdings across 2 hedge funds that were active in the last quarter was an increase of 14,000 shares.

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