LLY - Lexicon Pharmaceuticals Still On The Launch Pad With An Uncertain Trajectory

• The biggest news item from Lexicon's second quarter report was a delay in expected results from the company's Phase II studies of LX9211 in pain on slower enrollment.
• Lexicon is using a tougher screening process for patients in the LX9211 studies, which should help reduce the risk of issues like confounding placebo effect, but does take longer.
• Lilly announced that EMPEROR-Preserved met its primary endpoint in T2D patients with heart failure with preserved ejection fraction, but full data will come later this month.
• The commercial value of Lexicon's sotagliflozin largely rests on showing some sort of positive clinical differentiation, and better performance in HFpEF is likely the last real opportunity for that.
• Lexicon shares look undervalued on a risk-weighted valuation approach, but it's a very high-risk opportunity.

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