Full Press Release Details
LEXICON PHARMACEUTICALS PROVIDES CLINICAL PIPELINE UPDATE AND REPORTS 2014 FIRST QUARTER FINANCIAL RESULTS
Conference Call and Webcast at 11:00 a.m. Eastern Time
The Woodlands, Texas, May 8, 2014 - Lexicon Pharmaceuticals, Inc. (Nasdaq: LXRX), a biopharmaceutical company focused on developing breakthrough treatments for human disease, today updated its drug development progress and reported financial results for the three months ended March 31, 2014.
"Consistent with our focus on late-stage drug development, we have made continued, excellent progress in the enrollment of patients in our pivotal Phase 3 trial for telotristat etiprate for carcinoid syndrome," said Dr. Arthur T. Sands, president and chief executive officer of Lexicon. "We are also looking forward to advancing LX4211 into later stage development in type 1 diabetes based on the very encouraging results of our recently-completed Phase 2 study."
Progress in Clinical Pipeline
Revenues: Lexicon's revenues for the three months ended March 31, 2014 decreased 23 percent to $0.3 million from $0.4 million for the corresponding period in 2013, primarily due to lower revenues from Lexicon's alliance with Taconic Farms.
Research and Development Expenses: Research and development expenses for the three months ended March 31, 2014 increased 18 percent to $24.0 million from $20.3 million for the corresponding period in 2013, primarily due to increases in external clinical research and development costs, as well as severance costs as a result of the restructuring announced in January 2014 as Lexicon focuses its resources on late-stage drug development.
Increase in Fair Value of Symphony Icon Purchase Liability: In connection with the acquisition of Symphony Icon, Lexicon made an initial estimate of the fair value of the liability for the associated base and contingent payments. Changes in this liability, based on the development of the programs and the time until such payments are expected to be made, are recorded in Lexicon's consolidated statements of operations. For the three months ended March 31, 2014, the fair value of the Symphony Icon purchase liability increased by $1.1 million as compared to an increase of $1.3 million in the corresponding period in 2013.
General and Administrative Expenses: General and administrative expenses for the three months ended March 31, 2014 increased 31 percent to $5.7 million from $4.3 million for the corresponding period in 2013, primarily due to severance costs as a result of the restructuring announced in January 2014.
Consolidated Net Loss: Net loss for the three months ended March 31, 2014 was $30.8 million, or $0.06 per share, compared to a net loss of $26.0 million, or $0.05 per share, in the corresponding period in 2013. For the three months ended March 31, 2014 and 2013, net loss included non-cash, stock-based compensation expense of $2.3 million and $2.1 million, respectively.
Cash and Investments: As of March 31, 2014, Lexicon had $98.4 million in cash and investments, as compared to $129.1 million in cash and investments as of December 31, 2013.
Lexicon Conference Call
Lexicon management will hold a conference call to discuss its clinical development progress and financial results for the first quarter of 2014 at 11:00 a.m. Eastern Time on May 8, 2014. The dial-in number for the conference call is 888 645 5785 (within the US/Canada) or 970-300-1531 (international). The conference ID for all callers is 37713663. Investors can access a live webcast of the call at www.lexpharma.com. An archived version of the webcast will be available on the website through June 8, 2014.
Lexicon is a biopharmaceutical company focused on developing breakthrough treatments for human disease. Lexicon has clinical-stage drug programs for diabetes, carcinoid 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. 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 clinical development of LX4211 and telotristat etiprate (LX1032), including characterizations of the results of and projected timing of clinical trials of such compounds, and the potential therapeutic and commercial potential of LX4211 and telotristat etiprate (LX1032). In addition, 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 clinical development of LX4211 and telotristat etiprate (LX1032) and preclinical and clinical development of its other potential drug candidates, 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, 2013, 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 March 31, | |||||||
| (In thousands, except per share data) | 2014 | 2013 | ||||||
| (unaudited) | ||||||||
| Revenues: | ||||||||
| Collaborative research | $ | 172 | $ | 284 | ||||
| Subscription and license fees | 105 | 76 | ||||||
| Total revenues | 277 | 360 | ||||||
| Operating expenses: | ||||||||
| Research and development, including stock-based compensation of $1,458 and $1,330, respectively | 23,953 | 20,327 | ||||||
| Increase in fair value of Symphony Icon, Inc. purchase liability | 1,142 | 1,264 | ||||||
| General and administrative, including stock-based compensation of $792 and $779, respectively | 5,654 | 4,324 | ||||||
| Total operating expenses | 30,749 | 25,915 | ||||||
| Loss from operations | (30,472 | ) | (25,555 | ) | ||||
| Interest income | 8 | 53 | ||||||
| Interest expense | (457 | ) | (506 | ) | ||||
| Other income, net | 86 | 34 | ||||||
| Consolidated net loss | $ | (30,835 | ) | $ | (25,974 | ) | ||
| Consolidated net loss per common share, basic and diluted | $ | (0.06 | ) | $ | (0.05 | ) | ||
| Shares used in computing consolidated net loss per common share, basic and diluted | 513,955 | 512,428 |
| Consolidated Balance Sheet Data | As of March 31, | As of December 31, | |||||
| (In thousands) | 2014 | 2013 | |||||
| (unaudited) | |||||||
| Cash and investments. | $ | 98,367 | $ | 129,128 | |||
| Property and equipment, net | 39,959 | 41,362 | |||||
| Goodwill | 44,543 | 44,543 | |||||
| Other intangible assets | 53,557 | 53,557 | |||||
| Total assets | 243,600 | 274,160 | |||||
| Deferred revenue | 13,582 | 13,600 | |||||
| Current and long-term debt | 21,457 | 21,877 | |||||
| Other long-term liabilities. | 34,017 | 32,386 | |||||
| Accumulated deficit | (1,034,793 | ) | (1,003,959) | ||||
| Total stockholders' equity | 140,775 | 170,163 |
Contact for Lexicon:
Senior Director, Finance and Communications