- With the closing of the sale of Xermelo, management has meaningfully reduced debt, leaving the company with no significant maturities or conversions and about $111M in quarter-end cash.
- Lexicon has enough cash on hand to see LX9211 through two Phase II clinical studies in pain (diabetic neuropathy and post-herpetic neuralgia), with data expected late in 2021.
- Pain drug development is notoriously difficult, but management has designed a Phase II study for diabetic neuropathy that should reduce the risk of interference from placebo effects.
- Although management will try to re-engage with the FDA on a path forward for sotagliflozin, I assign no value to that drug; LX9211 can support a $2.50/share FV today.
For further details see:
Lexicon Has Cleaned Up Its Balance Sheet To Take Another Run At A Meaningful Commercial Product