Lexicon Pharmaceuticals, Inc. (NASDAQ:LXRX) Q1 2023 Earnings Call Transcript

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Dr. Craig Granowitz: The only thing I would add and I think my colleagues have been very clear, is in that class there’s only three SGLTs that’s going to be in this class fighting this fight. We know Jardiance is one and the other one certainly would be dapagliflozin, and the third one would be sotagliflozin. Why is that unique? Is that the European guidelines we were spoken about and we hadn’t even submitted the drug. That’s how powerful the data is. We get to the U.S. guidelines, once again there’s specificity to sotagliflozin and we hadn’t received an approval, and so already sotagliflozin and the uniqueness of this data is fall falling into these guidelines, absent the drug even being approved. And so, we will have these guidelines and the way that these guidelines pretty much as a significant value proposition as we go into market that is remarkably unique.

And so, we’re feeling pretty confident. At this stage, it’s about locking and loading and getting ready for what we believe the FDA will deliver to us and for us. And we’ll certainly have a lot more to say once that happens.

Operator: Our next question comes from Joseph Stringer from Needham and Company. Please go ahead with your question.

Joseph Stringer: Just going back to the potential label scenarios for sota, you kind of outlined your best case broad label scenario. I guess do you feel that you need to have that best case broad label in order to be differentiated from the approved competitor drugs and be commercially successful? Or if sota does get approved with a more narrow label, do you think — do you still think that you could be differentiated and capital market share and ultimately be commercially successful?

Lonnel Coats: Thank you, Joseph. Let me first say I’m pretty confident the scenario I gave you is the scenario there should be. How I would say that patients are going to cycle on these compounds and given the growth rate and the size of this market, the CAGR that we see just the cycling of these compounds, we will have a significant opportunity. But the uniqueness of our data should we achieve what I’ve already laid out to you, will indeed create a significant opportunity for sotagliflozin and quite a large product over time. So, I’m pretty confident in my view around what I believe where we’re going to land and that’s going to be the optimistic scenario.

Operator: And ladies and gentlemen, with that, we’ll be concluding today’s question-and-answer session. I’d like to turn the floor back over to the management team for any closing remarks.

Lonnel Coats: Well, as always, I want to thank everyone for joining us. This is such an awesome opportunity for Lexicon and our stakeholders this year. LX9211 will advance into late stage development. We are feeling pretty good about that. We will get the FDA feedback here shortly, and we will know exactly how we want to advance LX9211. I feel confident that if we move into partnership, it will be under the terms that we think is important for us to generate value for all of our stakeholders. The second one is for sotagliflozin, we are feeling pretty bullish and therefore we have made the investments. Our people are on board. They are ready to go. The conversations with the FDA has been remarkably productive and we are feeling, as I said pretty confident that we are a short period away from turning the cards over and sharing with you what we have always believed is that, we have a remarkably unique compound that we can bring to the market and begin to live our mission and as to ensure that patients have an opportunity to improve their lives with 1 of our innovations.

With it, I’ll thank you and look forward to the next call.

Operator: Ladies and gentlemen, with that we will conclude today’s conference call and presentation. We thank you for joining. You may now disconnect your lines.

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