THE WOODLANDS, Texas, Feb. 24, 2011 /PRNewswire/ -- Lexicon Pharmaceuticals, Inc. (Nasdaq: LXRX), a biopharmaceutical company focused on discovering and developing breakthrough treatments for human disease, today updated its drug development progress and reported financial results for the three months and year ended December 31, 2010.
"We achieved significant progress in the advancement of our drug pipeline in 2010, led by positive results in clinical trials of LX4211 for type 2 diabetes," said Dr. Arthur T. Sands, president and chief executive officer of Lexicon. "We also reported the results of a Phase 2a trial of LX2931 in rheumatoid arthritis, demonstrating a preliminary signal of efficacy and favorable safety profile that we believe supports exploration of higher doses in future studies."
Key Developments of 2010
Financial ResultsRevenues: Lexicon's revenues for the three months ended December 31, 2010 decreased 11 percent to $1.3 million from $1.4 million for the corresponding period in 2009. For the year ended December 31, 2010, revenues decreased 54 percent to $4.9 million from $10.7 million for the corresponding period in 2009.
Research and Development Expenses: Research and development expenses for the three months ended December 31, 2010 decreased three percent to $18.3 million from $18.8 million for the corresponding period in 2009. The decrease was primarily attributable to decreased external clinical research and development costs. For the year ended December 31, 2010, research and development expenses decreased three percent to $78.5 million from $81.2 million for the corresponding period in 2009.
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. The increase in fair value of the Symphony Icon purchase liability was $1.6 million and $2.7 million for the three months and year ended December 31, 2010, respectively.
General and Administrative Expenses: General and administrative expenses for the three months ended December 31, 2010 decreased 13 percent to $3.9 million from $4.4 million for the corresponding period in 2009. The decrease was primarily attributable to decreased patent fees. For the year ended December 31, 2010, general and administrative expenses were $19.4 million, consistent with the corresponding period in 2009.
Net Loss Attributable to Lexicon Pharmaceuticals, Inc.: Net loss for the three months ended December 31, 2010 was $23.0 million, or $0.07 per share, compared to a net loss of $22.0 million, or $0.13 per share, in the corresponding period in 2009. Net loss for the year ended December 31, 2010 was $101.8 million, or $0.34 per share, compared to a net loss of $82.8 million, or $0.57 per share, for the corresponding period in 2009. For the three months and year ended December 31, 2010, net loss included non-cash, stock-based compensation expense of $1.5 million and $5.5 million, respectively. For the three months and year ended December 31, 2009, net loss included non-cash, stock-based compensation expense of $1.2 million and $5.3 million, respectively.
Cash and Investments: As of December 31, 2010, Lexicon had $211.1 million in cash and investments, as compared to cash and investments of $231.0 million as of September 30, 2010 and cash and investments, net of its obligations under the credit line secured by its auction rate securities, of $125.1 million as of December 31, 2009.
Lexicon Conference Call:Lexicon management will hold a conference call to discuss its clinical development progress and financial results for 2010 and financial guidance for 2011 at 11:00 a.m. Eastern Time on February 24, 2011. The dial-in number for the conference call is 888-220-1244 (within the US/Canada) or 706-679-5615 (international). The conference ID for all callers is 44537933. 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 March 24, 2011.
About LexiconLexicon is a biopharmaceutical company focused on discovering breakthrough treatments for human disease. Lexicon currently has four drug candidates in mid-stage development for diabetes, irritable bowel syndrome, carcinoid syndrome and rheumatoid arthritis, 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. Lexicon has focused drug discovery efforts on these biologically-validated targets to create its extensive pipeline of clinical and preclinical programs. For additional information about Lexicon and its programs, please visit www.lexpharma.com.
Safe Harbor StatementThis press release contains "forward-looking statements," including statements relating to Lexicon's clinical development of LX1031, LX1032, LX1033, LX2931, and LX4211, including characterizations of the results of and projected timing of clinical trials of such compounds, and the potential therapeutic and commercial potential of LX1031, LX1032, LX1033, LX2931, and LX4211. 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 LX1031, LX1032, LX1033, LX2931, and LX4211 and preclinical and clinical development of its other potential drug candidates, advance additional candidates into preclinical and clinical development, 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. Unless specifically indicated otherwise, results reported as trends were not statistically significant. Information identifying such important factors is contained under "Factors Affecting Forward-Looking Statements" and "Risk Factors" in Lexicon's annual report on Form 10-K for the year ended December 31, 2009, 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 DataConsolidated Statements of Operations DataThree Months EndedDecember 31,Year Ended December 31,(In thousands, except per share data)2010200920102009(unaudited)(unaudited)Revenues:Collaborative research$ 754$ 1,292$ 4,191$ 9,334Subscription and license fees4991207171,366Total revenues1,2531,4124,90810,700Operating expenses:Research and development, including stock-based compensation
of $804, $694, $3,170 and $3,022, respectively18,25218,83478,52081,238Increase in fair value of Symphony Icon, Inc. purchase liability1,565-2,710-General and administrative, including stock-based compensation
of $716, $502, $2,308 and $2,252, respectively3,8614,42519,39619,418Total operating expenses23,67823,259100,626100,656Loss from operations(22,425)(21,847)(95,718)(89,956)Gain on investments, net-1651411,173Interest income51211519880Interest expense(626)(786)(2,719)(2,966)Other income (expense), net1(513)(4,024)(2,550)Consolidated loss before income taxes(22,999)(22,770)(101,801)(93,419)Income tax benefit--26102Consolidated net loss(22,999)(22,770)(101,775)(93,317)Loss attributable to noncontrolling interest in Symphony Icon, Inc.-765-10,537Net loss attributable to Lexicon Pharmaceuticals, Inc.$ (22,999)$ (22,005)$ (101,775)$ (82,780)Net loss attributable to Lexicon Pharmaceuticals, Inc. per common share, basic and diluted$
(0.57)Shares used in computing net loss attributable to Lexicon Pharmaceuticals, Inc. per common share, basic and diluted337,407169,872302,844145,465Consolidated Balance Sheet DataAs of December 31,As of December 31,(In thousands)
20102009(unaudited)Cash and investments, including cash and investments held by Symphony Icon, Inc.
$ 211,111$ 162,513Obligations under line of credit-(37,435)Cash and investments, net of obligations under line of credit
211,111125,078Property and equipment, net53,42758,754Goodwill44,54325,798Other intangible assets53,557-Total assets366,884257,761Deferred revenue14,42615,154Current and long-term debt, including line of credit
28,48366,964Other long-term liabilities.48,783616Accumulated deficit(673,406)(570,175)Total Lexicon Pharmaceuticals, Inc. stockholders' equity
|SOURCE Lexicon Pharmaceuticals, Inc.|
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