Needham Sticks to Its Hold Rating for Lexicon Pharmaceuticals (LXRX)

By Ryan Adsit

Needham analyst Alan Carr maintained a Hold rating on Lexicon Pharmaceuticals (LXRXResearch Report) today. The company’s shares closed on Friday at $6.20.

Carr wrote:

“Lexicon and collaborator Sanofi announced Friday that the FDA issued a Complete Response Letter (CRL) for Diabetes (T1D). Mgmt did not provide details around FDA concerns. As a reminder, an FDA Advisory Committee voted 8-8 on Zynquista approval at a Jan 2018 mtg. Diabetic Ketoacidosis was the focus of the mtg and nearly all members, regardless of vote, believed that the drug would only be appropriate for a small subset of particularly attentive T1D patients. We expect the drug to ultimately be approved for but not in the near future. We expect an update from the matter by mid-2019. A positive CHMP opinion for Zynquista in T1D was recently issued by European regulators and we expect formal approval in 2Q19. Maintain HOLD, but we believe the stock becomes more attractive w/ confirmation of differentiated Zynquista profile in T2D.”

According to, Carr is a 4-star analyst with an average return of 4.1% and a 44.3% success rate. Carr covers the Healthcare sector, focusing on stocks such as Biohaven Pharmaceutical Holding Co Ltd, ACADIA Pharmaceuticals Inc, and Vertex Pharmaceuticals.

Lexicon Pharmaceuticals has an analyst consensus of Moderate Buy, with a price target consensus of $24, representing a 287.1% upside. In a report released today, Gabelli also upgraded the stock to Hold.

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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 946.7K.

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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.