Lexicon Pharmaceuticals, Inc. (NASDAQ: LXRX) Investor Securities Class Action Lawsuit 01/29/2019

If you purchased a significant amount of shares of Lexicon Pharmaceuticals, Inc. (NASDAQ: LXRX) between March 11, 2016 and January 17, 2019, and / or if you purchased any NASDAQ: LXRX shares prior to March 2016 and continue to hold any of those shares, you have certain options and for certain investors are short and strict deadlines running. Deadline: April 1, 2019. NASDAQ: LXRX investors should contact the Shareholders Foundation, Inc.

To have your information reviewed for options and to recieve notifications about this case, please use this form. You may also send an email to mail@shareholdersfoundation.com, or call us at (858) 779-1554.
Company Name(s): 
Lexicon Pharmaceuticals
Case Name: 
Lexicon Pharmaceuticals Shareholder Class Action Lawsuit 01/29/2019
Case Status: 
Lawsuit Filed
Affected Securities
NASDAQ: LXRX
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
01/29/2019
Class Period Begin: 
03/11/2016
Class Period End: 
01/17/2019
Court of Filing: 
U.S. District Court for the Southern District of Texas
Deadline To File for Lead: 
04/01/2019
Summary: 

An investor in shares of Lexicon Pharmaceuticals, Inc. (NASDAQ: LXRX) filed a lawsuit in the U.S. District Court for the Southern District of Texas over alleged violations of Federal Securities Laws by Lexicon Pharmaceuticals, Inc. in connection with certain allegedly false and misleading statements made between March 11, 2016 and January 17, 2019.

The Woodlands, TX based Lexicon Pharmaceuticals, Inc., a biopharmaceutical company, focuses on the development and commercialization of pharmaceutical products for the treatment of human diseases. Sotagliflozin” is the scientific name of one of Lexicon Pharmaceuticals, Inc’s orally-delivered small molecule drug candidates under development. Sotagliflozin is in Phase 3 clinical trials for the treatment of type 1 and type 2 diabetes.

In November 2015, Lexicon Pharmaceuticals, Inc entered into a collaboration and license agreement with Sanofi S.A. (“Sanofi”), a French multinational pharmaceutical company. Under the collaboration and license agreement, Lexicon Pharmaceuticals, Inc granted Sanofi an exclusive, worldwide, royalty-bearing right and license to develop, manufacture and commercialize Sotagliflozin. Lexicon Pharmaceuticals, Inc is responsible for all clinical development activities relating to type 1 diabetes and retains an exclusive option to co-promote and have a significant role, in collaboration with Sanofi, in the commercialization of Sotagliflozin for the treatment of type 1 diabetes in the United States. Sanofi is responsible for all clinical development and commercialization of Sotagliflozin for the treatment of type 2 diabetes worldwide and is solely responsible for the commercialization of Sotagliflozin for the treatment of type 1 diabetes outside the United States.
On May 22, 2018, Sanofi filed a New Drug Application (“NDA”) for “Zynquista” (the trademarked, commercialized name of Sotagliflozin) with the U.S. Food and Drug Administration (“FDA”). The NDA for Zynquista was based on data from the inTandem clinical trial program that included three Phase 3 clinical trials (called, respectively, “inTandem1,” “inTandem2,” and “inTandem3”) assessing the safety and efficacy of Zynquista in approximately 3,000 adults with inadequately controlled type 1 diabetes.
According to Jorge Insuasty, Senior-Vice President, Global Head of Development, Sanofi, “[i]f approved, Zynquista would be the first oral antidiabetic drug approved in the U.S. for use by adults with type 1 diabetes, in combination with insulin.”

On January 17, 2019, Lexicon announced that the Endocrinologic and Metabolic Drugs Advisory Committee of the FDA (the “Advisory Committee”) had “voted eight to eight on the question of whether the overall benefits of [Lexicon’s product] Zynquista (sotagliflozin) outweighed the risks to support approval.” Shares of Lexicon Pharmaceuticals, Inc. (NASDAQ: LXRX) declined from $18.99 per share in October 2016 to as low as $4.26 per share on January 25, 2019.

According to the complaint the plaintiff alleges on behalf of purchasers of Lexicon Pharmaceuticals, Inc. (NASDAQ: LXRX) common shares between March 11, 2016 and January 17, 2019, that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that between March 11, 2016 and January 17, 2019, the Defendants made false and/or misleading statements and/or failed to disclose that the data from Lexicon’s Phase 3 clinical trials assessing the safety and efficacy of Sotagliflozin in treating type 1 diabetes were not as positive as Lexicon represented, that the health risks posed by Sotagliflozin were severe enough to threaten its FDA approval prospects, and that as a result, Lexicon’s public statements were materially false and misleading at all relevant times.