Lexicon Pharmaceuticals Provides Clinical Pipeline Update And Reports 2013 Second Quarter Financial Results

  Lexicon Pharmaceuticals Provides Clinical Pipeline Update And Reports 2013
                       Second Quarter Financial Results

Conference Call and Webcast at 11:00 a.m. Eastern Time

PR Newswire

THE WOODLANDS, Texas, July 30, 2013

THE WOODLANDS, Texas, July 30, 2013 /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 and six
months ended June 30, 2013.

"We have continued to advance multiple programs in our clinical pipeline, most
notably completing enrollment of Phase 2 studies of telotristat etiprate in
ulcerative colitis and LX1033 in diarrhea-predominant irritable bowel
syndrome. We look forward to obtaining top-line results from these studies
around the end of the third quarter and in the fourth quarter of 2013,
respectively," said Dr. Arthur T. Sands, president and chief executive officer
of Lexicon. "In addition, we obtained initial safety data from the pioneer
portion of our Phase 2 trial of LX4211 in Type 1 diabetes and subsequently
advanced the study into its expansion phase."

Progress in Clinical Pipeline

  oLX4211: LX4211 is a dual inhibitor of sodium-glucose transporters 1 and 2
    (SGLT1 and SGLT2). SGLT1 is primarily responsible for glucose absorption
    in the gastrointestinal tract and SGLT2 is responsible for most of the
    glucose reabsorption performed by the kidney. At the 73^rd Scientific
    Sessions of the American Diabetes Association, Lexicon presented a
    sub-analysis of blood pressure effects observed in the 12-week
    dose-ranging Phase 2b study of LX4211 in type 2 diabetes. Notably,
    patients with high baseline systolic blood pressure (≥130 mmHg) dosed with
    LX4211 experienced an average of 14 mmHg reduction in systolic blood
    pressure when compared to placebo (p=0.002). In contrast, patients with
    normal systolic blood pressure at baseline (<130 mmHg) experienced an
    average of only 1 mmHg reduction (p=0.6). Lexicon also completed the
    pioneer portion of a Phase 2 clinical trial of LX4211 in type 1 diabetes,
    with LX4211 showing a favorable safety profile when given in combination
    with insulin. Lexicon has initiated enrollment of patients in the
    placebo-controlled, expansion portion of the type 1 diabetes trial and is
    proceeding with preparations for the initiation of Phase 3 clinical trials
    of LX4211 in type 2 diabetes.
  oTelotristat etiprate (LX1032): Telotristat etiprate is an inhibitor of
    tryptophan hydroxylase that reduces peripheral serotonin production
    without affecting brain serotonin levels. Lexicon has completed enrollment
    of patients in a Phase 2 clinical trial of telotristat etiprate in
    ulcerative colitis and continues to enroll patients in a pivotal Phase 3
    clinical trial of telotristat etiprate in carcinoid syndrome.
  oLX1033: LX1033 is an inhibitor of tryptophan hydroxylase that acts locally
    in the gastrointestinal tract to reduce serotonin production without
    impacting brain serotonin levels. Lexicon is completing enrollment of
    patients in a Phase 2 clinical trial of LX1033 in diarrhea-predominant IBS
    (IBS-d).
  oLX2761: At the 73^rd Scientific Sessions of the American Diabetes
    Association, Lexicon  presented data on its newest clinical candidate for
    diabetes. LX2761 acts locally in the gastrointestinal tract to reduce
    glucose absorption by inhibiting SGLT1 without any significant inhibition
    of SGLT2 in the kidney. LX2761 was shown to improve glycemic control in
    two mouse models of diabetes, as measured by reductions in hemoglobin A1c
    and oral glucose tolerance tests.

Financial Results

Revenues: Lexicon's revenues for the three months ended June 30, 2013 were
$0.2 million, consistent with the corresponding period in 2012. For the six
months ended June 30, 2013, revenues increased to $0.6 million from $0.5
million for the corresponding period in 2012.

Research and Development Expenses: Research and development expenses for the
three months ended June 30, 2013 increased 22 percent to $23.7 million from
$19.4 million for the corresponding period in 2012. The increase was
primarily attributable to increases in external clinical and preclinical
research and development and personnel costs, partially offset by decreases in
facility costs. For the six months ended June 30, 2013, research and
development expenses increased four percent to $44.0 million from
$42.4million for the corresponding period in 2012.

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 $0.5 million and $2.2million for the
three months ended June 30, 2013 and 2012, respectively, and was $1.7 million
and $4.2 million for the six months ended June 30, 2013 and 2012,
respectively.

General and Administrative Expenses: General and administrative expenses for
the three months ended June 30, 2013 increased 12 percent to $4.7 million from
$4.2 million for the corresponding period in 2012. The increase was primarily
attributable to increases in personnel costs and legal and patent fees. For
the six months ended June 30, 2013, general and administrative expenses
increased three percent to $9.0 million from $8.7 million for the
corresponding period in 2012.

Consolidated Net Loss: Net loss for the three months ended June 30, 2013 was
$29.1 million, or $0.06 per share, compared to a net loss of $25.9 million, or
$0.05 per share, in the corresponding period in 2012. Net loss for the six
months ended June 30, 2013 was $55.1 million, or $0.11 per share, compared to
a net loss of $55.8 million, or $0.12 per share, for the corresponding period
in 2012. For the three and six months ended June 30, 2013, net loss included
non-cash, stock-based compensation expense of $1.9million and $4.0 million,
respectively. For the three and six months ended June 30, 2012, net loss
included non-cash, stock-based compensation expense of $1.6 million and $3.3
million, respectively.

Cash and Investments: As of June 30, 2013, Lexicon had $175.4 million in cash
and investments, as compared to $197.2 million as of March 31, 2013 and $223.2
million as of December 31, 2012.

Lexicon Conference Call

Lexicon management will hold a conference call to discuss its clinical
development progress and financial results for the second quarter of 2013 at
11:00 a.m. Eastern Time on July 30, 2013. The dial-in number for the
conference call is 888-645-5785 (within the US/Canada) or 970-300-1531
(international). The conference ID for all callers is 22881223. 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 August 30, 2013.

About Lexicon

Lexicon is a biopharmaceutical company focused on discovering breakthrough
treatments for human disease. Lexicon currently has multiple drug programs in
clinical development for diabetes, irritable bowel syndrome, carcinoid
syndrome and other indications, 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 Statement

This press release contains "forward-looking statements", including statements
relating to Lexicon's clinical development of LX4211, telotristat etiprate
(LX1032), LX1033 and LX2761, including characterizations of the results of and
projected timing of clinical trials of such compounds, and the potential
therapeutic and commercial potential of LX4211, telotristat etiprate (LX1032),
LX1033 and LX2761. In addition, 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 LX4211, telotristat
etiprate (LX1032), LX1033 and LX2761 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. Information identifying such
important factors is contained under "Risk Factors" in Lexicon's annual report
on Form 10-K for the year ended December 31, 2012, 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 Data
Consolidated Statements of       Three Months Ended       Six Months Ended
Operations Data
                                 June 30,                 June 30,
(In thousands, except per share  2013       2012          2013       2012
data)
                                 (unaudited)              (unaudited)
Revenues:
 Collaborative research   $   211  $    199  $   495  $   351
 Subscription and         3          -             79         148
license fees
 Total revenues    214        199           574        499
Operating expenses:
Research and development,
including stock-based            23,692     19,355        44,019     42,392
compensation of $1,022, $915,
$2,352 and $1,952, respectively
Increase in fair value of
Symphony Icon, Inc. purchase     477        2,162         1,741      4,243
liability
General and administrative,
including stock-based            4,669      4,162         8,993      8,727
compensation of $847, $680,
$1,626 and $1,361, respectively
 Total operating   28,838     25,679        54,753     55,362
expenses
Loss from operations             (28,624)   (25,480)      (54,179)   (54,863)
Interest income                  44         58            97         114
Interest expense                 (496)      (530)         (1,002)    (1,067)
Other income (expense), net      (4)        21            30         17
Consolidated net loss            $         $ (25,931)   $         $ 
                                 (29,080)                (55,054)  (55,799)
Consolidated net loss per        $ (0.06)  $ (0.05)     $ (0.11)  $ (0.12)
common share, basic and diluted
Shares used in computing net
loss attributable to Lexicon     513,083    480,634       512,757    480,479
Pharmaceuticals, Inc. per
common share, basic and diluted



Consolidated Balance Sheet Data As of June 30,    As of December 31,
(In thousands)                  2013              2012
                                (unaudited)
Cash and investments            $    175,378  $   223,208
Property and equipment, net     42,152            42,634
Goodwill                        44,543            44,543
Other intangible assets         53,557            53,557
Total assets                    323,393           371,778
Deferred revenue                14,028            14,038
Current and long-term debt      22,678            23,451
Other long-term liabilities     35,256            32,283
Accumulated deficit             (954,886)         (899,832)
Total stockholders' equity      215,084           266,678



SOURCE Lexicon Pharmaceuticals, Inc.

Website: http://www.lexpharma.com
Contact: Alex Abuin, Ph.D., Vice President, Communications and Alliance
Management, 281/863-3213, aabuin@lexpharma.com