Dallas, Texas 02/13/2014 (FINANCIALSTRENDS) – Lexicon Pharmaceuticals, Inc. (NASDAQ:LXRX) has since announced that it will make some drastic changes in the company. First change is Dr. Sands, who will continue till a successor is chosen by the management, with conditional resignation in place. This move is as expected considering the fact that this company, under Dr. Sands leadership, has been looking for a partner is the diabetes line, for over two years now! The LX4211 which is already in late-stage testing for diabetes has yet to find the suitable partner to move things forward.
Lexicon Pharmaceuticals, Inc. (NASDAQ:LXRX) sudden move also includes cutting back on its work force by nearly half, or 45% exactly. The reason for reworking the strength of the work force is to bring in better liquidity to the common. In 2013, the company will make a saving of nearly $14 million, which by next year is expected to be quite substantial, at $22 million; considering that it currently holds $150 million in funds.
The company needs more funding now that it has decided to stop work on two of its early-stage development stage drugs and instead concentrate on its signature twin drugs, which are in very late stage of development.
Apparently, Lexicon Pharmaceuticals, Inc. (NASDAQ:LXRX) does not require that much a work force to concentrate entirely on the development of its LX4211.
Lexicon Pharmaceuticals, Inc. (NASDAQ:LXRX) had failed to see good results with – LX1033 which was for treating ulcerative colitis.
Lexicon Pharmaceuticals, Inc. (NASDAQ:LXRX) will now focus on telotristat etiprate in carcinoid syndrome as well as LX4211 which is expected to treat both types of diabetes- Type 1 and Type 2.
The tough part for Lexicon at this stage is that most competitors are already in position in diabetes and SGLT-1/2market. Where, Jonhnson and Johson will have Invokana and Astrazenca will have Farxiga, with Lilly and Astellas to soon bring-up the rare, in a period less than five years.