LLY - Lexicon Stumbles With Sotagliflozin But The Heart Failure Opportunity Is Getting More Interesting

• Lexicon shares were hit hard on the company's announcement that it will withdraw and resubmit its sotagliflozin NDA due to a technical omission.
• The heart failure space is getting more interesting as positive clinical data on SGLT-2 drugs are driving recommendations that they become a standard of care in this large addressable market.
• Lexicon will still have a formidable marketing challenge ahead; a broad label will help, but competing with entrenched rivals without head-to-head evidence of superiority will be tough.
• Lexicon shares appear to be worth around $6/share.

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