- Lexicon Pharmaceuticals (LXRX) sinks 10.5% premarket after saying that CEO Arthur Sands is leaving and that it will cut 115 jobs, or 45% of its workforce, with the layoffs coming mainly in R&D.
- The move will save $14M for the rest of this year and $22M annually after that.
- Lexicon is shifting its focus from drug discovery to completing the trials of therapies that are in late-stage development.
- The company will now mainly concentrate on treatments for diabetes and carcinoid syndrome, which affects patients with a rare cancerous tumor.
- The cost cuts come after Lexicon said last month that its irritable bowel syndrome medicine failed in Phase III testing.
- "Lexicon "essentially acknowledged that a promised partnership for the diabetes drug LX4211 isn't happening, forcing the company to move the drug into phase III studies on its own," writes Adam Feuerstein. (PR)
Lexicon CEO to leave, to cut almost half of staff
Jan 13 2014, 09:21 ET