THE WOODLANDS, Texas,
Jan. 13, 2014 /PRNewswire/ -- Lexicon
Pharmaceuticals, Inc. (Nasdaq: LXRX) announced today it is focusing
its resources on its late-stage drug development programs,
principally LX4211 for diabetes and telotristat etiprate (LX1032)
for carcinoid syndrome, and preparation for the transition to
commercialization. Lexicon will continue to meet its
obligations to existing partners and expects to continue to
progress its ongoing business development discussions, specifically
including those relating to LX4211 for diabetes.
Approximately 115 employees, primarily in research, discovery and
support positions will depart the company, representing
approximately 45% of the company's total workforce.
This narrowing of its strategic focus increases Lexicon's
financial strength and positions the company for longer-term
sustainable growth. Through the resulting staff reductions, Lexicon
expects to reduce its expenses by approximately $14 million, net of severance and other costs,
for the balance of 2014 and approximately $22 million on an annualized basis. As of
September 30, 2013, Lexicon had
$151.2 million in cash and
investments.
"This transition increases Lexicon's financial strength and will
enable the company to more effectively advance our key late-stage
programs and to prepare for commercialization," said Arthur T. Sands, M.D., Ph.D., Lexicon's
president and chief executive officer. "Nevertheless, it is
extremely difficult to release many people who have contributed so
significantly to the company over the years and who are our friends
and colleagues."
With the change in focus away from drug discovery and toward the
completion of late-stage development and preparation for commercial
operations, Dr. Sands has also indicated his intention to develop a
succession plan with the board of directors to identify a new chief
executive officer for the next phase of Lexicon's growth. The board
of directors will be conducting a search for that position, and it
is planned that Dr. Sands will continue as chief executive officer
until that process is complete.
"Since Lexicon's inception 20 years ago, I have been privileged
to work with an exceptional team, founding and building a company
that has evolved from fundamental genetics and chemistry to bring
forth new drug candidates now in late-stage development," said Dr.
Sands. "I look forward to continuing to actively lead the
organization during this important period of transition as Lexicon
continues to work toward the fulfillment of its mission to provide
breakthrough therapies for patients."
About Lexicon
Lexicon is a biopharmaceutical company
focused on discovering breakthrough treatments for human
disease. Lexicon currently has multiple programs in clinical
development for diabetes, carcinoid syndrome, irritable bowel
syndrome and other indications, all of which were discovered by
Lexicon's research team. Lexicon has used its proprietary
gene knockout technology to identify more than 100 promising drug
targets. Lexicon has focused drug discovery efforts on these
biologically-validated targets to create its extensive pipeline of
clinical and preclinical programs. For additional information
about Lexicon and its programs, please visit www.lexpharma.com.
Safe Harbor Statement
This press release contains
"forward-looking statements," including 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
"Risk Factors" in Lexicon's annual report on Form 10-K for the year
ended December 31, 2012, 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.
SOURCE Lexicon Pharmaceuticals, Inc.