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Friday, Oct 11
Gabelli sees upside for Lexicon after sell-off
- Gabelli's Kevin Kedra says Wednesday's sell-off in shares of Lexicon Pharmaceuticals (LXRX +2.5%) — triggered by news of telotristat etiprate's apparent lack of efficacy in terms of its affect on the pathogenesis of ulcerative colitis — should be viewed as a buying opportunity.
- "The primary near-term catalyst for the company will be a partnership with a major pharmaceutical company for LX4211 in diabetes," Kedra says, adding that "positive data in patients with renal impairment should help differentiate the compound from competitors and make it an attractive asset within diabetes."
- Gabelli's $4.75 target is well above current levels and doesn't include "any benefit from either ulcerative colitis or IBS-d."