On Wednesday, H.C. Wainwright maintained a optimistic outlook on Lexicon Prescription drugs (NASDAQ:), reiterating a Purchase score and a value goal of $10.00. The agency’s analyst highlighted latest knowledge from a secondary evaluation of the Section 3 SOTA-INS medical trial, which evaluated the efficacy of sotagliflozin in Kind 2 Diabetes (T2D) sufferers who’re on basal insulin remedy however nonetheless have insufficient glycemic management.
The SOTA-INS Steady Glucose Monitoring (CGM) substudy, which included 133 sufferers, aimed to evaluate the affect of sotagliflozin on the time-in-range (TIR) metric, a measure of how lengthy sufferers’ blood glucose ranges keep inside the goal vary. The outcomes confirmed that after 18 weeks, sufferers taking sotagliflozin achieved a TIR that approached the American Diabetes Affiliation’s advisable goal.
The American Diabetes Affiliation suggests that the majority sufferers with Kind 1 or Kind 2 diabetes ought to preserve their blood glucose ranges inside the goal vary for a minimum of 70% of the day. The SOTA-INS CGM substudy indicated that sotagliflozin, administered as soon as every day at doses of 200 mg and 400 mg, resulted in sufferers reaching a median of 15.3 and 15.9 hours inside the goal vary, respectively. This efficiency aligns carefully with the ADA’s guideline.
The examine additionally documented slight reductions within the time above vary (TAR) and minor will increase within the time beneath vary (TBR) for sufferers on sotagliflozin. These findings add to the proof of sotagliflozin’s potential to help in glycemic management for sufferers struggling to take care of their blood sugar ranges.
The affirmation of the $10.00 value goal and Purchase score by H.C. Wainwright displays the agency’s confidence in sotagliflozin’s capabilities following the brand new knowledge from the SOTA-INS trial. Lexicon Prescription drugs’ continued improvement of sotagliflozin might doubtlessly supply improved remedy choices for people with Kind 2 diabetes.
In different latest information, Lexicon Prescription drugs has reported optimistic outcomes from a Section 3 medical trial of its diabetes drug, sotagliflozin, which was proven to enhance glucose management in sort 2 diabetes sufferers.
Regardless of these promising outcomes, Lexicon won’t pursue a sign for sort 2 diabetes remedy with sotagliflozin. The corporate has additionally reported a web lack of $53.4 million of their second quarter 2024 earnings name, revealing revenues of $1.6 million for the quarter, primarily from INPEFA gross sales.
Lexicon is making ready for an FDA assessment of Zynquista, a drug supposed for glycemic management in adults with sort 1 diabetes and continual kidney illness. That is in keeping with Lexicon’s strategic shift to deal with its coronary heart failure drug, INPEFA, and the anticipated launch of ZYNQUISTA, which is anticipated to save lots of round $40 million in working prices for 2025.
The corporate has additionally initiated affected person enrollment for the Section 3 SONATA trial of sotagliflozin in hypertrophic cardiomyopathy and is advancing LX9851 into preclinical improvement for weight problems and weight administration. Lexicon anticipates top-line knowledge for the LX9211 examine in diabetic peripheral neuropathic ache by Q2 2025 and is making ready for the potential launch of Zynquista in early 2025.
InvestingPro Insights
As Lexicon Prescription drugs (NASDAQ:LXRX) continues to make strides within the improvement of sotagliflozin for Kind 2 diabetes, latest knowledge from InvestingPro provides traders a snapshot of the corporate’s monetary well being. With a market capitalization of roughly $603.69 million, the corporate holds a major money place that outweighs its debt, an InvestingPro Tip that means a stable steadiness sheet. This monetary stability might help Lexicon’s ongoing analysis and improvement efforts.
One other InvestingPro Tip signifies that analysts predict gross sales progress within the present 12 months, which aligns with the optimistic medical trial outcomes and will mirror the market’s optimism about sotagliflozin’s potential. Moreover, the corporate has skilled a dramatic income progress of practically 794.59% over the past twelve months as of Q2 2024, a metric that bodes effectively for its future prospects.
Nevertheless, it is vital to notice that analysts don’t anticipate the corporate might be worthwhile this 12 months, and Lexicon has been shortly burning by means of money. The InvestingPro product, which incorporates further ideas, lists a complete of 10 InvestingPro Ideas for Lexicon Prescription drugs, offering traders with a extra complete understanding of the corporate’s monetary place and future outlook. For these all for a deeper dive into Lexicon’s financials and prospects, the following pointers might be discovered at: https://www.investing.com/professional/LXRX.
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