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

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

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

PR Newswire

THE WOODLANDS, Texas, Nov. 12, 2013

THE WOODLANDS, Texas, Nov. 12, 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 nine
months ended September 30, 2013.

"We have continued to make significant progress in the advancement of our
clinical pipeline, highlighted by our announcement of positive top-line
results from a phase 2 study of LX4211 in patients with type 2 diabetes and
moderate to severe renal impairment," said Dr. Arthur T. Sands, president and
chief executive officer of Lexicon.

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. Lexicon announced positive
    top-line results from a phase 2 study of LX4211 in patients with type 2
    diabetes and moderate to severe renal impairment, and is proceeding with
    preparations for the initiation of Phase 3 clinical trials of LX4211 in
    type 2 diabetes. Lexicon also continues to enroll patients in a phase 2
    trial of LX4211 in type 1 diabetes.
  oTelotristat etiprate (LX1032): Telotristat etiprate is an inhibitor of
    tryptophan hydroxylase that reduces peripheral serotonin production
    without affecting brain serotonin levels. Lexicon announced top-line
    results from a pilot study of telotristat etiprate in patients with mild
    to moderate ulcerative colitis, and plans to maintain focus on its ongoing
    Phase 3 program for telotristat etiprate in carcinoid syndrome. Lexicon
    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 completed enrollment of patients
    in a Phase 2 clinical trial of LX1033 in diarrhea-predominant IBS, with
    top-line results expected to be released in November 2013.

Financial Results

Revenues: Lexicon's revenues for the three months ended September 30, 2013
decreased 36 percent to $0.2 million from $0.4 million for the corresponding
period in 2012, primarily due to decreases in technology license fees. For
the nine months ended September 30, 2013, revenues decreased seven percent to
$0.8 million from $0.9 million for the corresponding period in 2012.

Research and Development Expenses: Research and development expenses for the
three months ended September 30, 2013 increased 32 percent to $25.4 million
from $19.2 million for the corresponding period in 2012. The increase was
primarily attributable to increases in external clinical and preclinical
research and development costs resulting from the advancement of our clinical
pipeline, partially offset by decreases in facility costs. For the nine
months ended September 30, 2013, research and development expenses increased
13 percent to $69.4 million from $61.6 million 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 $1.3 million and $5.8 million for the
three months ended September 30, 2013 and 2012, respectively, and was $3.1
million and $10.1 million for the nine months ended September 30, 2013 and
2012, respectively.

General and Administrative Expenses: General and administrative expenses for
the three months ended September 30, 2013 increased seven percent to $4.7
million from $4.4 million for the corresponding period in 2012. The increase
was primarily attributable to increases in market research, consulting and
personnel costs. For the nine months ended September 30, 2013, general and
administrative expenses increased four percent to $13.7 million from $13.1
million for the corresponding period in 2012.

Consolidated Net Loss: Net loss for the three months ended September 30, 2013
was $31.7 million, or $0.06 per share, compared to a net loss of $29.5
million, or $0.06 per share, in the corresponding period in 2012. Net loss
for the nine months ended September 30, 2013 was $86.7 million, or $0.17 per
share, compared to a net loss of $85.3 million, or $0.18 per share, for the
corresponding period in 2012. For the three and nine months ended September
30, 2013, net loss included non-cash, stock-based compensation expense of $1.8
million and $5.7 million, respectively. For the three and nine months ended
September 30, 2012, net loss included non-cash, stock-based compensation
expense of $1.6 million and $4.9 million, respectively.

Cash and Investments: As of September 30, 2013, Lexicon had $151.2 million in
cash and investments, as compared to $175.4 million as of June 30, 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 third quarter of 2013 at
11:00 a.m. Eastern Time on November 12, 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 97923296. 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 December 12, 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) and LX1033, 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)
and LX1033. 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) and LX1033 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       Nine Months Ended
Operations Data
                                 September 30,            September 30,
(In thousands, except per share  2013       2012          2013       2012
data)
                                 (unaudited)              (unaudited)
Revenues:
 Collaborative research   $   238  $    214  $   733  $   565
 Subscription and         -          158           79         306
license fees
 Total          238        372           812        871
revenues
Operating expenses:
Research and development,
including stock-based
compensation                     25,400     19,192        69,419     61,584

of $1,027, $923, $3,379 and
$2,875, respectively
Increase in fair value of
Symphony Icon, Inc. purchase     1,338      5,844         3,079      10,087
liability
General and administrative,
including stock-based
compensation                     4,716      4,396         13,709     13,123

of $723, $669, $2,349 and
$2,030, respectively
 Total          31,454     29,432        86,207     84,794
operating expenses
Loss from operations             (31,216)   (29,060)      (85,395)   (83,923)
Interest income                  39         44            136        158
Interest expense                 (492)      (527)         (1,494)    (1,594)
Other income, net                11         4             41         21
Consolidated net loss            $         $ (29,539)   $         $ 
                                 (31,658)                (86,712)  (85,338)
Consolidated net loss per        $ (0.06)  $ (0.06)     $ (0.17)  $ (0.18)
common share, basic and diluted
Shares used in computing net
loss attributable to Lexicon     513,419    490,049       512,980    483,693
Pharmaceuticals, Inc. per
common share, basic and diluted





Consolidated Balance Sheet Data As of September 30,  As of December 31,
(In thousands)                  2013                 2012
                                (unaudited)
Cash and investments            $    151,210     $   223,208
Property and equipment, net     41,838               42,634
Goodwill                        44,543               44,543
Other intangible assets         53,557               53,557
Total assets                    299,458              371,778
Deferred revenue                14,090               14,038
Current and long-term debt      22,284               23,451
Other long-term liabilities     37,391               32,283
Accumulated deficit             (986,544)            (899,832)
Total stockholders' equity      185,710              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
 
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