Lexicon Pharmaceuticals, Inc. (NASDAQ: LXRX) is having an incredibly strong start to the trading session this morning, and for good reason. The company announced that it has received a drug approval from the European Commission.
As you could imagine, the news excited investors who are pushing the stock on a run for the top. Today, we’ll talk about:
- The drug approval;
- what we’re seeing from LXRX stock as a result; and
- what we’ll be watching for ahead.
LXRX Announces Drug Approval
As mentioned above, Lexicon Pharmaceuticals is having a great day in the market today after announcing a European drug approval. The announcement came by way of press release over the weekend.
According to the release, the European Commission has granted marketing authorization for Zynquista. The drug is one that was developed jointly by Sanofi (SNY) and LXRX.
Zynquista is indicated as a once-daily treatment as an adjunct to insulin therapy to improve blood sugar control in patients with type 1 diabetes melitus and body mass index ≥ 27 kg/m2, who could not achieve adequate glycemic control despite optimal insulin therapy.
In a statement, John Reed, M.D., Ph.D., Global Head of Research & Development at SNY had the following to offer:
Zynquista’s dual mechanism of action provides important treatment benefits for adults with type 1 diabetes, including reducing blood sugar reabsorption in the kidneys through SGLT2 inhibition and delaying dietary sugar absorption through local SGLT1 inhibition in the intestinal tract.
The above statement was followed up by Pablo Lapuerta, M.D., Executive Vice President and Chief Medical Officer at LXRX. Here’s what he had to say:
We are proud to have developed Zynquista in combination with insulin through the largest Phase 3 clinical trial program to date in adults with type 1 diabetes, and now to have it approved in the European Union. We thank the European Commission for recognizing the clinical benefits of Zynquista for adults with type 1 diabetes and the families and physicians who participated in the clinical trials.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to work in the market is that the news leads to moves. When it comes to Lexicon Pharmaceuticals, the news proved to be overwhelmingly positive.
After all, the new drug approval in Europe opens the door to a stream of revenue for the company. So, it’s not surprising to see that excited investors are pushing the stock on a run for the top.
As is just about always the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (8:20), LXRX is trading at $6.31 per share after a gain of $0.35 per share or 5.87% thus far today.
Stop wasting your time! Start finding winning trades in minutes with Trade Ideas!
What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on LXRX. In particular, we’re interested in following the story surrounding the company’s work with SNY to commercialize Zynquista in the EU following the news of the drug approval. Nonetheless, we’ll keep a close eye on the news and bring it to you as it breaks!
Never Miss The News Again
Do you want real-time, actionable news delivered to your inbox? Join the CNA Finance mailing list below!