LXRX - Lexicon Pharmaceuticals Still A Very High-Risk/High-Reward Biopharma Name

• "Steady as she goes" isn't enough for Lexicon; Zynquista really needs a partner to effectively compete in the market, particularly if upcoming trial data from AstraZeneca and Lilly/Boehringer are positive.
• There has been some movement by the FDA on Lexicon's attempt to get the agency to reconsider its rejection of Zynquista for Type 1 diabetes, but still no clarity.
• Management added more enrollment sites to its RELIEF-DPN study in the interests of staying on target with Phase II proof-of-concept data before year-end.
• A risk-adjusted model suggests a fair value of $6.50 today, but the outcomes for Lexicon are likely to be binary based upon the fate of Zynquista and LX9211.

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