Needham & Company Reiterates Bullish View on Lexicon Pharmaceuticals (LXRX) Following Phase 3 Trial Results

Needham & Company analyst Alan Carr reiterated a Buy rating and $22 price target on Lexicon Pharmaceuticals (NASDAQ: LXRX) after the company announced results from its second Phase 3 trial of sotagliflozin in Type 1 Diabetes (T1D; inTandem2) this morning. Primary endpoint of reduction in HbA1c was met (-0.03% placebo; -0.39% 200mg QD; -0.37% 400mg QD; p<0.001).

Carr commented, "Reductions were on similar scale to those of first Phase 3 trial (inTandem1). HbA1c reductions in sotagliflozin arms were achieved without increase in severe hypoglycemia events, a differentiating characteristic and meaningful benefit for pts. We note, however, an even more favorable trend was seen in inTandem1. There were 4 DKA events in sotagliflozin arms, compared to none in placebo arm. Similar to inTandem1 trial, there was a dose-dependent increase in AEs commonly linked to SGLT2 inhibition (diarrhea, genital mycotic infections) in sotagliflozin arms. Continuous glucose monitoring data are not yet available. Time in euglycemia may be an important differentiating characteristic for the drug."

For an analyst ratings summary and ratings history on Lexicon Pharmaceuticals click here. For more ratings news on Lexicon Pharmaceuticals click here.

Shares of Lexicon Pharmaceuticals closed at $16.33 yesterday.

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