Stephen Simpson, CFA
Long only, growth at reasonable price, value, research analyst

Lexicon's Long Shot Getting Even Longer

It has been a frustrating ride for Lexicon Pharmaceuticals (NASDAQ:LXRX) shareholders. Between never-ending (and so far completely fruitless) talk of a diabetes partnership just around the corner and clinical failures in ulcerative colitis and irritable bowel, there hasn't been much good news in a while outside of steadily strong data from 4211 (the diabetes drug).

Now matters get even dicier. Lexicon announced Monday that it was shuttering its early/development-stage R&D efforts to focus on maximizing the value of telotristat etiprate (carcinoid) and LX4211 (diabetes). With this, half of the workforce is being fired and the CEO will also be leaving. While management continues to repeat the mantra that it is talking to partners about the diabetes program, it's...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details