Lexicon Pharmaceuticals Q1 2024 Financial Results and Business Update

Lexicon Pharmaceuticals, Inc., headquartered in The Woodlands, Texas, has released its financial report for Q1 2024 and shared updates on several corporate milestones. According to Lonnel Coats, Lexicon's CEO, the company has experienced significant advancement, both in its commercial launches and research and development pipeline. This optimistic outlook is echoed by President and CFO Jeffrey Wade, who anticipates further success throughout the year.

The company has made notable progress in launching INPEFA® (sotagliflozin) for heart failure. Market access is expected to expand by mid-2024, potentially boosting sales in the latter half of the year. The first quarter saw net sales of $1.1 million, marking a 63% increase from the previous quarter. Presently, market access stands at approximately 40%.

Additionally, Lexicon plans to resubmit the New Drug Application (NDA) for ZYNQUISTA™ (sotagliflozin) as an adjunct to insulin for individuals with type 1 diabetes and chronic kidney disease (CKD) by mid-2024. This initiative follows recent feedback from the FDA. CKD affects an estimated 20-25% of type 1 diabetes patients, highlighting a critical need for new treatment options.

The company is also preparing for a Phase 3 clinical trial of sotagliflozin in hypertrophic cardiomyopathy (HCM), with patient enrollment set to commence around mid-2024. HCM is a condition with limited treatment options, affecting about one million patients who suffer from ongoing symptoms that impair their quality of life.

In the realm of diabetic peripheral neuropathic pain (DPNP), Lexicon is conducting the Phase 2b PROGRESS study of LX9211. Enrollment is on track, and top-line data is anticipated in Q2 2025. LX9211 holds the potential to be the first new, non-opioid drug approved for neuropathic pain in over two decades.

Another promising development is the selection of LX9851, an ACSL5 inhibitor, as a candidate for obesity and weight management. The compound has entered IND-enabling studies, reflecting the productivity of Lexicon's Genome5000™ gene knockout drug discovery engine.

The company's financial performance in Q1 2024 showed a net loss of $48.4 million, or $0.20 per share, compared to a net loss of $31.9 million, or $0.17 per share, in the same period last year. Revenues reached $1.1 million, primarily from INPEFA commercialization. Research and Development (R&D) expenses rose to $14.4 million from $12.0 million year-over-year, largely due to increased external R&D expenses. Selling, General, and Administrative (SG&A) expenses also saw a significant increase, rising to $32.1 million from $19.1 million, reflecting the investment in INPEFA's commercial launch.

As of March 31, 2024, Lexicon held $355.6 million in cash and investments, a substantial increase from $170.0 million at the end of 2023. This financial position is bolstered by the successful issuance of convertible preferred stock in March 2024.

Lexicon continues to participate actively in scientific and medical communities, presenting research at various conferences such as the American Society of Nephrology in January 2024, the International Conference on Advanced Technologies & Treatments for Diabetes in March 2024, and the American College of Cardiology in April 2024. Topics covered in these presentations ranged from the risk of diabetic ketoacidosis in type 1 diabetes treated with sotagliflozin to the drug’s impact on kidney outcomes and cardiovascular health.

In summary, Lexicon Pharmaceuticals has reported significant progress across various fronts, from product launches to cutting-edge research. The company is poised for further growth as it continues to develop and commercialize innovative treatments aimed at improving patient outcomes in multiple therapeutic areas.