Needham Remains a Hold on Lexicon Pharmaceuticals (LXRX)

By Ryan Adsit

Needham analyst Alan Carr maintained a Hold rating on Lexicon Pharmaceuticals (LXRXResearch Report) yesterday. The company’s shares closed yesterday at $5.97.

Carr noted:

“Lexicon reported 1Q19 U.S. Xermelo sales of $6.7M, below our $8.0M est. Mgmt reiterated 2019 guidance for 20+% y/y U.S. sales growth. Sanofi and Lexicon announced Zynquista approval for by EMA 4/26/19. Lexicon is entitled to a milestone payment in 2Q19 tied to the approval, which we estimate to be around $30M. Discussions w/ FDA around CRL in T1D are planned. No guidance on timing. We previously removed the revenue stream from our model. The first of several Phase 3 T2D trials are expected to generate results beginning in 2Q19 (metformin combination first). We believe the stock is likely to become more attractive if Zynquista is sufficiently differentiated from SGLT2 drugs in T2D, particularly around renal impairment. Maintain HOLD.”

According to TipRanks.com, Carr is a 4-star analyst with an average return of 4.6% and a 43.6% success rate. Carr covers the Healthcare sector, focusing on stocks such as Biohaven Pharmaceutical Holding Co Ltd, ACADIA Pharmaceuticals Inc, and Rhythm Pharmaceuticals Inc.

The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Lexicon Pharmaceuticals with a $22.50 average price target.

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The company has a one-year high of $13.97 and a one-year low of $4.25. Currently, Lexicon Pharmaceuticals has an average volume of 894K.

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Lexicon Pharmaceuticals, Inc. engages in the discovery, development, and commercialization of pharmaceutical products for the treatment of human disease. It drug candidates include XERMELO, Sotagliflozin, LX2761, and LX9211. The company was founded by Brian P. Zambrowicz and Arthur T. Sands on July 7, 1995 and is headquartered in The Woodlands, TX.