Lexicon Pharmaceuticals (NASDAQ:LXRX) is now off 13.8% today on heavy volume following a very bearish take from Seeking Alpha contributor Mako Research.
A breakup of the company’s deal with Sanofi for develping sotaglifozin will throw responsibility for late-stage trials to Lexicon, accelerating cash burn, Mako says — and the company admits it doesn’t have enough cash to finish the ongoing trials, “much less fund a commercial launch.”
“On closer examination it’s clear that the terms of the termination are a disaster for Lexicon and its investors,” Mako says.
Sell-side analysts rate the stock Outperform on average, while Seeking Alpha authors are Neutral overall. The stock has a Quant Rating of Very Bearish.
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