Lexicon Pharmaceuticals (LXRX) management reported earnings for the second quarter on July 31 and provided a little more context and detail about the situation with Sanofi (SNY) regarding the latter’s attempt to exit the development and marketing collaboration for SGLT-1/2 drug Zynquista in diabetes. Although the update does reinforce the notion that Lexicon has some enforceable rights here, management is realistic that the collaboration is effectively over.
Lexicon is in a precarious place. Relative to cash burn, the company probably has around a year’s worth of cash left, and it seems