Lexicon Pharmaceuticals Announces Strategic Repositioning to Drive Value and Growth of Commercial Portfolio

Rhea-AI Summary

Lexicon Pharmaceuticals announces strategic repositioning to optimize its commercial portfolio and drive growth. The company will focus on targeted promotion of INPEFA® for heart failure while preparing for the potential launch of ZYNQUISTA™ for type 1 diabetes with chronic kidney disease. This restructuring is expected to reduce 2025 operating costs by $40 million.

Key actions include:

• Reducing headcount by over 75 (50% of field force) by Q3 2024
• Targeted promotion of INPEFA® in heart failure
• Investment in ZYNQUISTA™ launch preparation
• Continued funding for R&D programs, including Phase 3 study of sotagliflozin in hypertrophic cardiomyopathy and Phase 2b study of LX9211 in diabetic neuropathic pain

The company aims to create efficiencies while maintaining focus on high-impact opportunities for patients and shareholders.

Positive

• Expected cost savings of $40 million for 2025
• Continued funding for key R&D programs, including Phase 3 and Phase 2b studies
• Potential launch of ZYNQUISTA™ for type 1 diabetes with chronic kidney disease
• Targeted promotion strategy for INPEFA® in heart failure

Negative

• Reduction of headcount by over 75 employees (50% of field force)
• Scaling back promotional efforts for INPEFA®

Company to Focus on Targeted Promotion of INPEFA^® in Heart Failure While Prioritizing Investment in the Potential Launch of ZYNQUISTA™

Efforts Expected to Reduce 2025 Operating Costs by $40 Million

THE WOODLANDS, Texas, Aug. 13, 2024 (GLOBE NEWSWIRE) -- Lexicon Pharmaceuticals, Inc. (Nasdaq: LXRX), today announced that, following a strategic review of its commercial and pipeline programs, it will refocus resources across the portfolio in support of opportunities where the company believes it can have the greatest impact on patients. As a result, the company will optimize its promotional efforts for INPEFA^® (sotagliflozin) in heart failure and reallocate resources to effectively support the potential commercial launch of ZYNQUISTA™ (sotagliflozin) for improvement of glycemic control in adults with type 1 diabetes and chronic kidney disease (CKD). These efforts are designed to create efficiencies in the company's commercial efforts to promote both INPEFA^® and ZYNQUISTA™. The company expects these efforts to result in cost savings of approximately $40 million for 2025 while ensuring all R&D programs including the pivotal Phase 3 study of sotagliflozin in hypertophic cardiomyopathy (HCM) and the ongoing Phase 2b dose optimization study of LX9211 in diabetic neuropathic pain are fully funded.

“Lexicon entered 2024 with a number of exciting commercial and pipeline opportunities,” said Dr. Mike Exton, chief executive officer and director. “Over the past few weeks, we have been working on a plan to allocate resources across these opportunities, build on the successes of our capable commercial team and focus on where we have the potential to lead and succeed. As a result, we have made the decision to right-size our promotional efforts around INPEFA for heart failure and reallocate resources to prepare for our potential launch of ZYNQUISTA™. We strongly believe in the value INPEFA offers patients, and we will continue to drive growth in heart failure with a targeted approach. We remain committed to the cardiovascular community as we also pursue an additional indication for sotagliflozin in HCM. This renewed approach will allow us to drive value and growth for Lexicon and focus on opportunities where we can have the most impact for patients.”

In alignment with this reprioritization of resources, the company is planning the following actions with the objective of reducing operational expenses and ensuring the company is right-sized for future opportunities:

• Reduction of headcount by more than 75, or approximately 50% of its current field force, by the end of the third quarter of 2024.
• Targeted continuing promotion for INPEFA in heart failure dedicated to growth and expanding market access.
• Proper investment in the potential launch of ZYNQUISTA™ for improvement of glycemic control in adults with type 1 diabetes and CKD.
• Fully investing in our R&D programs including the recently-initiated pivotal Phase 3 study of sotagliflozin in HCM, the ongoing Phase 2b dose optimization study of LX9211 in diabetic neuropathic pain with data expected in the first half of 2025, and IND-enabling studies of LX9851 for obesity and weight management.

About Lexicon Pharmaceuticals

Lexicon is a biopharmaceutical company with a mission of pioneering medicines that transform patients’ lives. Through the Genome5000™ program, Lexicon’s unique genomics target discovery platform, Lexicon scientists studied the role and function of nearly 5,000 genes and 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 treat disease safely and effectively. Lexicon has commercially launched one of these medicines, INPEFA^® (sotagliflozin) in the United States, and has a pipeline of other promising drug candidates in discovery and clinical and preclinical development in neuropathic pain, diabetes and metabolism and other indications. For additional information, please visit www.lexpharma.com.

Safe Harbor Statement

This press release contains “forward-looking statements,” including statements relating to Lexicon’s financial position and long-term outlook on its business, growth and future operating results, discovery, development and commercialization 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 Lexicon’s ability to meet its capital requirements, successfully commercialize its approved products, conduct preclinical and clinical development and obtain necessary regulatory approvals of sotagliflozin, LX9211, LX9851 and its other drug candidates on its anticipated timelines, 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, 2023, and other subsequent disclosure documents 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.

For Media and Investor Inquiries:
Lisa DeFrancesco
Lexicon Pharmaceuticals, Inc.
lexinvest@lexpharma.com

FAQ

What is Lexicon Pharmaceuticals' new strategy for INPEFA® (LXRX)?

Lexicon Pharmaceuticals is implementing a targeted promotion strategy for INPEFA® in heart failure, focusing on growth and expanding market access while optimizing resources.

How much does Lexicon Pharmaceuticals (LXRX) expect to save in operating costs for 2025?

Lexicon Pharmaceuticals expects to reduce operating costs by approximately $40 million for 2025 through its strategic repositioning efforts.

What is the status of ZYNQUISTA™ development by Lexicon Pharmaceuticals (LXRX)?

Lexicon Pharmaceuticals is preparing for the potential launch of ZYNQUISTA™ for improvement of glycemic control in adults with type 1 diabetes and chronic kidney disease.

How many employees will be affected by Lexicon Pharmaceuticals' (LXRX) restructuring in 2024?

Lexicon Pharmaceuticals plans to reduce headcount by more than 75 employees, or approximately 50% of its current field force, by the end of the third quarter of 2024.