Lexicon Pharma Shares Down Almost 10% on FDA Rejection
March 25 2019 - 11:20AM
Dow Jones News
By Colin Kellaher
Shares of Lexicon Pharmaceuticals Inc. (LXRX) fell nearly 10% on
Monday after the U.S. Food and Drug Administration turned away the
company's new-drug application for Zynquista, a pill that
potentially offered a chance to reduce the number of daily insulin
injections for people with Type 1 diabetes.
The Houston biopharmaceutical company and French drugmaker
Sanofi SA (SNY), its partner on the drug, on Friday said they
received a complete response letter from the FDA, which indicates
the agency can't approve the NDA in its current form.
The companies didn't say why the FDA rejected the application
and said they will work with the agency to determine the next
steps.
Analysts at J.P. Morgan, Stifel and Wedbush all cut their price
targets on Lexicon after the setback, but Wedbush said the stock's
decline represents a buying opportunity ahead of some "significant
near-term catalysts."
Shares of Lexicon fell about 9.7% to $5.60 in Monday morning
trading.
Write to Colin Kellaher at colin.kellaher@wsj.com
(END) Dow Jones Newswires
March 25, 2019 11:05 ET (15:05 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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