Why Lexicon Pharmaceuticals Was Plunging on Monday

This isn't the best way for a company to begin its work week. On Monday, shares of Lexicon Pharmaceuticals (NASDAQ: LXRX) fell sharply earthward, losing over 27% of their value. This followed the release of the biotech's fourth-quarter results, accompanied by a discouraging update about one of its pipeline drugs.

For the quarter, revenue was "negligible," similar to that of Q4 2020. This is not unusual for a clinical-stage biotech like Lexicon, which as a pre-commercial business has no products yet on the market. Due to increases in both research and development, and selling, general, and administrative expenses, net loss deepened to $25.6 million ($0.17 per share) from the year-ago shortfall of $5.5 million.

Image source: Getty Images.

Continue reading

Source Fool.com