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Lexicon CEO to retire in July after a decade

Published 29/04/2024, 15:24
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THE WOODLANDS, Texas - Lexicon Pharmaceuticals , Inc. (NASDAQ:LXRX) announced today that CEO Lonnel Coats (LON:COA) will retire on July 7, 2024, marking his 10th anniversary with the biopharmaceutical company. Coats will also step down from the board of directors on the same date. The company's board has begun the process of selecting a successor, considering both internal and external candidates.

During Coats' tenure, Lexicon successfully launched two compounds into the market and progressed multiple programs to late-stage development. The company also transitioned from a platform-based scientific organization to a fully integrated biopharmaceutical operation. Ray Debbane, chair of Lexicon’s board, praised Coats for his leadership and for assembling a strong management team poised to continue the company's mission.

Coats expressed his gratitude for the opportunity to lead Lexicon and his confidence in the company's team to maintain momentum. He highlighted the company's focus on expanding access and sales of INPEFA® (sotagliflozin), with plans to launch the drug for type 1 diabetes and chronic kidney disease as early as the first quarter of 2025. Lexicon also anticipates starting a Phase 3 study of sotagliflozin for hypertrophic cardiomyopathy by mid-2024, aiming for market entry by late 2027.

Additionally, Coats mentioned the expected disclosure of topline data from the PROGRESS Phase 2b study of LX9211 for diabetic peripheral neuropathic pain by the second quarter of 2025, and the advancement of LX9851 for obesity and weight management towards IND-enabling studies.

Lexicon's recent capital raise and management's commitment to targeted capital allocation and partnership opportunities were cited as reasons for the company's optimistic outlook.

This news is based on a press release statement.

InvestingPro Insights

As Lexicon Pharmaceuticals, Inc. (NASDAQ:LXRX) prepares for a leadership transition with the upcoming retirement of CEO Lonnel Coats, the company's financial and market performance offers valuable insights. Lexicon holds a market capitalization of $389.05 million, reflecting its standing within the biopharmaceutical industry. Despite a challenging period, with a price drop of 34.17% over the last month, the company exhibits a robust revenue growth rate of 766.19% for the last twelve months as of Q4 2023. This surge is even more pronounced when looking at the quarterly revenue growth, which stands at an impressive 2407.14% for Q4 2023.

InvestingPro Tips suggest that Lexicon's balance sheet is more liquid than it might appear at first glance, as the company holds more cash than debt. This positions Lexicon to potentially navigate its upcoming strategic initiatives with greater financial flexibility. Additionally, analysts have revised their earnings upwards for the upcoming period, indicating a positive outlook on the company's financial performance.

It is worth noting, however, that Lexicon has been rapidly burning through cash and suffers from weak gross profit margins, with a gross profit margin of -4798.01% for the last twelve months as of Q4 2023. While these challenges are significant, the company's promising pipeline and strategic focus may offer pathways to improve its financial health over time.

For readers interested in a deeper dive into Lexicon's financials and future prospects, InvestingPro provides an array of additional tips, including insights into sales growth, profitability expectations, and stock performance trends. To explore these further, visit https://www.investing.com/pro/LXRX and use the exclusive coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. Currently, there are 12 more InvestingPro Tips available for Lexicon Pharmaceuticals, offering a comprehensive analysis for investors and industry observers alike.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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