THE WOODLANDS, Texas,
Aug. 1, 2017 /PRNewswire/
-- Lexicon Pharmaceuticals, Inc. (Nasdaq: LXRX), today
reported financial results for the three months ended June 30, 2017 and provided an overview of key
milestones for the company's commercial product,
XERMELO®, and its pipeline drug candidates.
"I am extremely pleased with our performance in the first full
quarter of the XERMELO launch as we continue to make significant
progress in growing our prescriber base and providing access to
XERMELO. This momentum, along with the European Medicines Agency's
Committee for Medicinal Products for Human Use (CHMP) positive
opinion on XERMELO, supports our confidence in the long-term
outlook on the commercial business going forward," said
Lonnel Coats, Lexicon's president
and chief executive officer. "In parallel, we are making great
strides towards advancing sotagliflozin to market in type 1
diabetes. We recently elected to exercise our co-promotion option
with Sanofi and, if approved, we will have the right to play a
significant role in the commercialization of sotagliflozin in type
1 diabetes in the U.S. Last but not least, we intend to create more
value from our innovative pipeline as we continue to advance our
other product candidates."
Second Quarter 2017 Product and Pipeline Progress
XERMELO (telotristat ethyl) 250 mg
- In June, XERMELO was included as a recommended treatment option
in the latest National Comprehensive Cancer Network (NCCN) Clinical
Practice Guidelines in Oncology for neuroendocrine tumors (NET)
patients with carcinoid syndrome diarrhea. The NCCN designated
XERMELO together with somatostatin analog (SSA) therapy as a
category 2A treatment for adults inadequately controlled by SSA
therapy.
- In June, XERMELO was included in the NCCN Drugs & Biologics
Compendium (NCCN Compendium®).
Sotagliflozin
- In May, the Company reported additional positive efficacy and
safety data from the U.S. Phase 3 inTandem1 study. Data included
secondary endpoints such as body weight and systolic blood pressure
in hypertensive type 1 diabetes mellitus (T1DM) patients and rates
of adverse events like severe hypoglycemia and diabetic
ketoacidosis (DKA).
- At the 77th American Diabetes Association Scientific
Session in June, Lexicon reported new positive efficacy and safety
data for sotagliflozin from two-late breaking abstracts from the
inTandem2 and JDRF studies and two oral presentations on pivotal
data from the inTandem1 study.
- In June, the Company reported positive top-line data from the
global Phase 3 inTandem3 study evaluating approximately 1,400 T1DM
patients treated with sotagliflozin 400 mg once daily or placebo on
a background of any insulin therapy, but without insulin
optimization prior to randomization. Sotagliflozin 400 mg
demonstrated superiority compared to placebo in the proportion of
patients with A1C ≤ 7.0% at Week 24 and no episode of severe
hypoglycemia and no episode of DKA after randomization.
LX2761
- LX2761, an internally-generated oral SGLT1 inhibitor, is
currently in Phase 1 clinical trials for the treatment of diabetes.
These trials remain ongoing.
Second Quarter 2017 Financial Highlights
Revenues: Revenues for the three months ended
June 30, 2017 decreased to
$12.1 million from $20.1 million for the corresponding period in
2016, primarily due to lower revenues recognized from the
collaboration and license agreement with Sanofi, partially offset
by $3.9 million in net product
revenues. Net product revenues for the three months ended
June 30, 2017 included $3.6 million and $0.3
million, respectively, from the sale of XERMELO in the U.S.
and sale of bulk tablets of telotristat ethyl to Ipsen.
Cost of Sales: Lexicon had cost of sales related to sales
of XERMELO of $0.5 million for the
three months ended June 30, 2017, of
which $0.4 million consisted of
amortization of intangible assets.
Research and Development Expenses: Research and
development expenses for the three months ended June 30, 2017 decreased 44 percent to
$26.9 million from $48.2 million for the corresponding period in
2016, primarily due to decreases in external clinical development
costs relating to sotagliflozin.
Selling, General and Administrative Expenses: Selling,
general and administrative expenses for the three months ended
June 30, 2017 increased 120 percent
to $18.5 million from $8.4 million for the corresponding period in
2016, primarily due to increased costs associated with the
commercial launch of XERMELO.
Consolidated Net Loss: Net loss for the three months
ended June 30, 2017 was $35.1 million, or $0.33 per share, compared to a net loss of
$38.1 million, or $0.37 per share, in the corresponding period in
2016. For the three months ended June 30,
2017, net loss included non-cash, stock-based compensation
expense of $2.4 million. For the
three months ended June 30, 2016, net
loss included non-cash, stock-based compensation expense of
$2.0 million.
Cash and Investments: As of June
30, 2017, Lexicon had $231.2
million in cash and investments, as compared to $259.7 million as of March
31, 2017 and $346.5 million as of December 31, 2016. Lexicon's use of cash remains
consistent with prior guidance, and the Company continues to
anticipate that its current liquidity and capital resources,
together with expected revenues, will be sufficient to fund its
operations at least through 2018.
Anticipated Upcoming Milestones
- September 11-15, 2017 – Two oral
presentations (inTandem2 and JDRF studies) and two poster
presentations (dose ranging and inTandem1 studies) at the
53rd Annual Meeting of the European Association for the
Study of Diabetes (EASD) in Lisbon
- Q3 2017 - Secondary endpoint data from inTandem2
- Q3 2017 - Pooled continuous glucose monitoring (CGM) data from
inTandem1 and inTandem2
- Q3 2017 – Potential EU approval of XERMELO in patients with
carcinoid syndrome diarrhea in combination with SSA therapy in
adults inadequately controlled by SSA therapy
- 2H 2017 – Initiation of several Phase 3 sotagliflozin studies
in type 2 diabetes (T2DM) by Sanofi
- 2H 2017 – Initiation of a Phase 1 study for LX9211 in
neuropathic pain
- 2H 2017 – Phase 1 data for LX2761 in healthy subjects and
patients with T2DM
Conference Call and Webcast Information
Lexicon management will hold a live conference call and webcast
today at 8:00 am EDT / 7:00 am CDT to review its financial and operating
results and to provide a general business update. The dial-in
number for the conference call is 888-645-5785 (U.S./Canada) or 970-300-1531 (international). The
conference ID for all callers is 8318300. The live webcast and
replay may be accessed by visiting Lexicon's website at
www.lexpharma.com/investors. An archived version of the webcast
will be available on the website for 14 days.
About XERMELO (telotristat ethyl)
Discovered using Lexicon's unique approach to gene science,
XERMELO (telostristat ethyl) is the first and only approved oral
therapy for carcinoid syndrome diarrhea in combination with SSA
therapy in adults inadequately controlled by SSAs. XERMELO targets
tryptophan hydroxylase, an enzyme that mediates the excess
serotonin production within metastatic neuroendocrine tumor (mNET)
cells. Lexicon has built the in-house capability and infrastructure
to launch and market XERMELO in the U.S., where it retains all
commercialization rights. Lexicon also retains rights to
market XERMELO in Japan. Lexicon
has established a license and collaboration agreement with Ipsen to
commercialize XERMELO in Europe
and other countries outside of U.S. and Japan.
XERMELO was approved by the U.S. Food and Drug Administration on
February 28, 2017 for the treatment
of carcinoid syndrome diarrhea in combination with SSA therapy in
adults inadequately controlled by SSA therapy. Carcinoid syndrome
is a rare condition that occurs in patients living with metastatic
NETs (mNETs) and is characterized by frequent and debilitating
diarrhea. XERMELO targets the overproduction of serotonin inside
mNET cells, providing a new treatment option for patients suffering
from carcinoid syndrome diarrhea.
XERMELO (telotristat ethyl) Important Safety
Information
- Warnings and Precautions: XERMELO may cause
constipation, which can be serious. Monitor for signs and symptoms
of constipation and/or severe, persistent, or worsening abdominal
pain in patients taking XERMELO. Discontinue XERMELO if severe
constipation or severe, persistent, or worsening abdominal pain
develops.
- Adverse Reactions: The most common adverse
reactions (≥5%) include nausea, headache, increased
gamma-glutamyl-transferase, depression, flatulence, decreased
appetite, peripheral edema, and pyrexia.
- Drug Interactions: If necessary, consider
increasing the dose of concomitant CYP3A4 substrates, as XERMELO
may decrease their systemic exposure. If combination treatment with
XERMELO and short-acting octreotide is needed, administer
short-acting octreotide at least 30 minutes after administering
XERMELO.
For more information about XERMELO, see Full Prescribing
Information at www.xermelo.com.
About Lexicon Pharmaceuticals
Lexicon is a fully integrated biopharmaceutical company that is
applying a unique approach to gene science based on Nobel
Prize-winning technology to discover and develop precise medicines
for patients with serious, chronic conditions. Through its
Genome5000™ program, Lexicon scientists have studied the role and
function of nearly 5,000 genes over the last 20 years and have
identified more than 100 protein targets with significant
therapeutic potential in a range of diseases. Through the precise
targeting of these proteins, Lexicon is pioneering the discovery
and development of innovative medicines to safely and effectively
treat disease. In addition to its first commercial product,
XERMELO® (telotristat ethyl) for carcinoid
syndrome diarrhea, Lexicon has a pipeline of promising drug
candidates in clinical and pre-clinical development in diabetes and
metabolism and neuropathic pain. For additional information please
visit www.lexpharma.com.
Safe Harbor Statement
This press release contains "forward-looking statements,"
including statements relating to Lexicon's long-term outlook on its
commercial business, including commercialization of XERMELO
(telotristat ethyl) 250 mg, the strides it is making in advancing
the clinical development of sotagliflozin and the timing of a
potential filing for U.S. regulatory approval in type 1 diabetes.
In addition, this press release also contains forward looking
statements relating to Lexicon's growth and future operating
results, regulatory milestones, including those under the headline
"Anticipated Upcoming Milestones," 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 the degree of
market acceptance of XERMELO, the availability of coverage and
reimbursement for XERMELO, Lexicon's dependence on third parties
for manufacturing and distribution of XERMELO, Lexicon's compliance
with applicable legal and regulatory requirements and other factors
relating to the commercialization of XERMELO. Other risks include
Lexicon's ability to meet its capital requirements, successfully
conduct preclinical and clinical development and obtain necessary
regulatory feedback and approvals of sotagliflozin, LX2761 and
LX9211 on its anticipated timeline, as well as for other potential
drug candidates, 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. Any of these risks, uncertainties and
other factors 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, 2016, 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
|
|
Consolidated
Statements of Operations Data
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
June
30,
|
|
June
30,
|
|
(In thousands,
except per share data)
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
(unaudited)
|
|
(unaudited)
|
|
Revenues:
|
|
|
|
|
|
|
|
|
Net product
revenue
|
$
3,892
|
|
$
-
|
|
$
4,613
|
|
$
-
|
|
Collaborative
agreements
|
8,104
|
|
20,001
|
|
25,669
|
|
32,495
|
|
Subscription and
license fees
|
57
|
|
88
|
|
64
|
|
88
|
|
Total
revenues
|
12,053
|
|
20,089
|
|
30,346
|
|
32,583
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
Cost of sales
(including finite-lived intangible asset
amortization)
|
537
|
|
-
|
|
762
|
|
-
|
|
Research and development,
including stock-based
compensation of $1,169, $973,
$2,353 and
$1,962,
respectively
|
26,934
|
|
48,216
|
|
70,515
|
|
85,218
|
|
Increase in
fair value of Symphony Icon
purchase liability
|
-
|
|
478
|
|
2,101
|
|
1,443
|
|
Selling,
general and administrative, including
stock-based compensation of
$1,234, $984, $2,281
and $1,830, respectively
|
18,475
|
|
8,416
|
|
33,346
|
|
16,814
|
|
Total operating
expenses
|
45,946
|
|
57,110
|
|
106,724
|
|
103,475
|
|
Loss from
operations
|
(33,893)
|
|
(37,021)
|
|
(76,378)
|
|
(70,892)
|
|
Interest
expense
|
(1,614)
|
|
(1,638)
|
|
(3,202)
|
|
(3,287)
|
|
Interest and other
income, net
|
448
|
|
547
|
|
978
|
|
1,184
|
|
Net loss before
income taxes
|
(35,059)
|
|
(38,112)
|
|
(78,602)
|
|
(72,995)
|
|
Income tax
benefit
|
-
|
|
-
|
|
8,652
|
|
-
|
|
Net loss
|
$ (35,059)
|
|
$ (38,112)
|
|
$ (69,950)
|
|
$ (72,995)
|
|
|
|
|
|
|
|
|
|
|
Consolidated net loss
per common share, basic and diluted
|
$
(0.33)
|
|
$
(0.37)
|
|
$
(0.67)
|
|
$
(0.70)
|
|
|
|
|
|
|
|
|
|
|
Shares used in computing consolidated net
loss
per common share, basic and
diluted
|
105,300
|
|
103,830
|
|
104,883
|
|
103,756
|
|
|
|
Consolidated
Balance Sheet Data
|
As of
June 30, 2017
|
|
As of
December 31, 2016
|
(In
thousands)
|
(Unaudited)
|
|
|
|
|
|
|
Cash and
investments
|
$
231,187
|
|
$
346,504
|
Property and
equipment, net
|
18,588
|
|
19,390
|
Goodwill
|
44,543
|
|
44,543
|
Other intangible
assets
|
52,768
|
|
53,357
|
Total
assets
|
363,513
|
|
475,625
|
Deferred
revenue
|
91,509
|
|
112,306
|
Current and long-term
debt
|
100,539
|
|
101,447
|
Accumulated
deficit
|
(1,322,304)
|
|
(1,250,363)
|
Total stockholders'
equity
|
106,313
|
|
157,401
|
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SOURCE Lexicon Pharmaceuticals, Inc.