Live Conference Call and Webcast at 5:00 p.m. Eastern Time THE
WOODLANDS, Texas, Oct. 30 /PRNewswire-FirstCall/ -- Lexicon
Pharmaceuticals, Inc. (NASDAQ:LXRX), a biopharmaceutical company
focused on discovering and developing breakthrough treatments for
human disease, today reported financial results for the three and
nine months ended September 30, 2007. "We continued to make
progress in our 10to10 initiative in the third quarter, completing
the Phase 1b clinical trial of LX1031, our drug candidate for the
treatment of irritable bowel syndrome," said Arthur T. Sands, M.D.,
Ph.D., Lexicon's president and chief executive officer. "The
studies demonstrated that LX1031 was well-tolerated at all dose
levels and we look forward to advancing it into Phase 2 clinical
trials in 2008." Highlights of the Third Quarter -- Lexicon
scientists presented data revealing the target of a new class of
internally-developed compounds that includes LX1031 and other
compounds under evaluation by the company as potential treatments
for irritable bowel syndrome (IBS) and other gastrointestinal
disorders. The compounds inhibit tryptophan hydroxylase 1 (TPH1),
the key enzyme responsible for producing serotonin in the
gastrointestinal tract. In preclinical studies with these
molecules, serotonin levels could be reduced in the intestine
without affecting levels of the neurotransmitter in the brain,
where it mediates mood and other behaviors. -- Lexicon received
stockholder approval for and completed a financing transaction with
Invus, L.P., under which Invus made an initial common stock
investment of $205 million, with the potential of up to an
additional $345 million over the next four years, to help fund the
Company's transition into an integrated biopharmaceutical company.
Upon the closing of the transaction, Raymond Debbane, president and
chief executive officer of The Invus Group, LLC, and Christopher
Sobecki and Philippe Amouyal, both managing directors of The Invus
Group, joined the Lexicon board of directors. -- Judith L. Swain,
M.D., was appointed to Lexicon's board of directors. Dr. Swain is
currently executive director of the Singapore Institute for
Clinical Sciences within the Singapore Agency for Science,
Technology, and Research (A*STAR) and the Lien Chow Professor of
Medicine at the National University of Singapore. Dr. Swain also
maintains an appointment as an adjunct professor of medicine at the
University of California, San Diego and has previously served as
chair of the Department of Medicine at Stanford University, and on
the medical faculties of the University of Pennsylvania and Duke
University. "We were pleased to complete our
strategically-important investment from Invus in August," added
Julia P. Gregory, Lexicon's executive vice president and chief
financial officer. "Lexicon is on solid financial footing to
execute our 10to10 drug discovery and development initiative."
Financial Results Revenues: Lexicon's revenues for the three months
ended September 30, 2007 decreased 48 percent to $10.2 million from
$19.6 million for the corresponding period in 2006. The decrease
was primarily attributable to the recognition of revenue in the
year-earlier period under a contract with the National Institutes
of Health as well as reduced revenue under Lexicon's neuroscience
alliance with Bristol-Myers Squibb Company resulting from the
conclusion of the revenue recognition period for the upfront
payment received under the alliance. For the nine months ended
September 30, 2007, revenues decreased 36 percent to $36.3 million
from $56.7 million for the corresponding period in 2006. Research
and Development Expenses: Research and development expenses for the
three months ended September 30, 2007 decreased nine percent to
$24.5 million from $27.0 million for the corresponding period in
2006. The decrease was primarily due to the Company's early 2007
strategic realignment reallocating resources from genetics research
efforts to drug development. Lexicon's realignment was made
possible by the scheduled completion of its Genome5000(TM) program.
This decrease was offset in part by higher external preclinical and
clinical costs related to the advancement of Lexicon's drug
development programs. For the nine months ended September 30, 2007,
research and development expenses decreased five percent to $77.4
million from $81.1 million for the corresponding period in 2006.
General and Administrative Expenses: General and administrative
expenses for the three months ended September 30, 2007 decreased
four percent to $5.1 million from $5.3 million for the
corresponding period in 2006. The decrease was primarily
attributable to lower personnel costs as a result of the Company's
personnel reductions in early 2007, offset by higher professional,
legal and consulting fees. For the nine months ended September 30,
2007, general and administrative expenses decreased five percent to
$15.4 million from $16.3 million for the corresponding period in
2006. Net Loss: Net loss for the three months ended September 30,
2007 was $14.1 million, or $0.14 per share, compared to a net loss
of $12.8 million, or $0.20 per share, for the corresponding period
in 2006. Net loss for the nine months ended September 30, 2007 was
$46.6 million, or $0.53 per share, compared to a net loss of $40.5
million, or $0.63 per share, for the corresponding period in 2006.
The net loss for the three and nine months ended September 30, 2007
included a benefit of $3.9 million and $8.2 million, respectively,
attributable to the loss from noncontrolling interest in Symphony
Icon, resulting from Lexicon's consolidation of Symphony Icon. For
the three and nine months ended September 30, 2007, net loss
included non-cash, stock-based compensation expense of $1.6 million
and $4.8 million, respectively. Cash and Investments: As of
September 30, 2007, Lexicon had $273.9 million in cash and
investments, including $39.6 million in cash and investments held
by Symphony Icon, as compared to $95.2 million as of June 30, 2007
and $80.0 million as of December 31, 2006. Lexicon Conference Call:
Lexicon management will hold a conference call to discuss the
company's results and provide financial guidance for the third
quarter at 5:00 p.m. Eastern Time on October 30, 2007. To listen to
the conference call live, the dial-in number is 877-874-1569
(within the United States) or 719-325-4796 (International). The
pass code for all callers is 1913448. Alternatively, investors can
access a live webcast of the call at http://www.lexpharma.com/. An
archived version of the webcast will be available on the website
through November 6, 2007. About Lexicon Lexicon is a
biopharmaceutical company focused on the discovery and development
of breakthrough treatments for human disease. Lexicon currently has
clinical programs underway for such areas of major unmet medical
need as irritable bowel syndrome and cognitive disorders. The
company has used its proprietary gene knockout technology to
discover more than 100 promising drug targets and create an
extensive pipeline of clinical and preclinical programs in the
therapeutic areas of diabetes and obesity, cardiovascular disease,
psychiatric and neurological disorders, cancer, immune system
disorders and ophthalmic disease. To advance the development and
commercialization of its programs, Lexicon is working both
independently and through collaborators including Bristol-Myers
Squibb Company, Genentech, Inc. and N.V. Organon. For additional
information about Lexicon and its programs, please visit
http://www.lexpharma.com/. Safe Harbor Statement This press release
contains "forward-looking statements," including statements
relating to Lexicon's research and development of LX1031 and other
tryptophan hydroxylase inhibitors. This press release also contains
forward-looking statements relating to Lexicon's growth and future
operating results, discovery and development of products, strategic
alliances and intellectual property, as well as other matters that
are not historical facts or information. All forward-looking
statements are based on management's current assumptions and
expectations and involve risks, uncertainties and other important
factors, specifically including those relating to Lexicon's ability
to successfully conduct preclinical and clinical development of its
potential drug candidates, advance additional candidates into
preclinical and clinical development, obtain necessary regulatory
approvals, achieve its operational objectives, obtain patent
protection for its discoveries and establish strategic alliances,
as well as additional factors relating to manufacturing,
intellectual property rights, and the therapeutic or commercial
value of its drug candidates, that may cause Lexicon's actual
results to be materially different from any future results
expressed or implied by such forward-looking statements.
Information identifying such important factors is contained under
"Factors Affecting Forward-Looking Statements" and "Risk Factors"
in Lexicon's annual report on Form 10-K for the year ended December
31, 2006, as filed with the Securities and Exchange Commission.
Lexicon undertakes no obligation to update or revise any such
forward-looking statements, whether as a result of new information,
future events or otherwise. Lexicon Pharmaceuticals, Inc. Selected
Financial Data Three Months Nine Months Consolidated Statements of
Operations Ended Ended Data September 30, September 30, (In
thousands, except per share data) 2007 2006 2007 2006 (unaudited)
(unaudited) Revenues: Collaborative research $ 9,712 $ 18,770 $
34,460 $ 53,427 Subscription and license fees 455 843 1,850 3,305
Total revenues 10,167 19,613 36,310 56,732 Operating expenses:
Research and development, including stock-based compensation of
$965, $1,101, $3,000, and $3,355, respectively 24,518 27,010 77,402
81,115 General and administrative, including stock-based
compensation of $635, $660, $1,830, and $2,011, respectively 5,091
5,309 15,395 16,276 Total operating expenses 29,609 32,319 92,797
97,391 Loss from operations (19,442) (12,706) (56,487) (40,659)
Interest income 2,166 774 3,811 2,677 Interest expense (694) (817)
(2,077) (2,437) Other expense, net (8) (6) (34) (69) Loss before
noncontrolling interest in Symphony Icon, Inc. (17,978) (12,755)
(54,787) (40,488) Loss attributable to noncontrolling interest in
Symphony Icon, Inc 3,867 -- 8,170 -- Net loss $(14, 111) $(12,755)
$(46,617) $(40,488) Net loss per common share, basic and diluted $
(0.14) $ (0.20) $ (0.53) $(0.63) Shares used in computing net loss
per common share 104,196 64,832 87,331 64,676 Consolidated Balance
Sheet Data (In thousands) As of September 30, As of December 31,
2007 2006 (unaudited) Cash and investments, including cash and
investments held by Symphony Icon $273,915 $79,999 Property and
equipment, net 72,350 78,192 Goodwill 25,798 25,798 Total assets
378,192 190,266 Deferred revenue 40,979 58,000 Current and
long-term debt 31,584 32,188 Noncontrolling interest in Symphony
Icon, Inc. 25,980 -- Accumulated deficit (398,358) (351,741) Total
stockholders' equity 265,389 85,501 DATASOURCE: Lexicon
Pharmaceuticals, Inc. CONTACT: Chas Schultz, Director of Financial
Analysis of Lexicon Pharmaceuticals, Inc., +1-281-863-3421, Web
site: http://www.lexpharma.com/
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