Here's Why Lexicon Pharmaceuticals Is Collapsing Today
Shares of Lexicon Pharmaceuticals (NASDAQ: LXRX) fell over 74% today after the company told investors that Sanofi (NASDAQ: SNY) was terminating their collaboration related to Zynquista (sotagliflozin). The news, announced on Friday afternoon, was delivered alongside mixed preliminary results from a phase 3 clinical trial for the drug candidate in type 2 diabetes.
While Lexicon Pharmaceuticals put a positive spin on the preliminary results and said it hasn't had time to fully evaluate the data, the fact that Sanofi is walking away told investors everything they needed to know. The smaller company will regain global rights to the drug candidate, but investors clearly aren't optimistic about its future.
As of 11:46 a.m. EDT, the stock had settled to a 71.9% loss.
Quelle Fool.com
