Lexicon Pharmaceuticals Incorporated Q2 2010 Earnings Call Transcript

Lexicon Pharmaceuticals Incorporated Q2 2010 Earnings Call Transcript
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Lexicon Pharmaceuticals Incorporated (LXRX)

Q2 2010 Earnings Call

August 9, 2010 11:01 am

Executives

Wade Walke - Senior Director of Communications and Investor Relations

Arthur Sands

- President and Chief Executive Officer

Phil Brown - Senior Vice President of Clinical Development

Jeff Wade - Executive Vice President of Corporate Development and Chief Financial Officer

Analysts

Phil Nadeau - Cowen & Co

Steven Willy - Stifel Nicolaus

Presentation

Operator

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» Lexicon Pharmaceuticals, Inc. Q1 2010 Earnings Call Transcript
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Welcome to the Lexicon Pharmaceuticals Second Quarter 2010 Conference Call. At this time, all participants are in a listen-only mode. There will be a question-and-answer session to follow. (Operator instructions). At this time, I would like to introduce your host for today’s call, Wade Walke, Senior Director of Communication and Investor Relation. Please go ahead, Dr. Walke.

Wade Walke

Good morning. Welcome to Lexicon Pharmaceuticals second quarter 2010 conference call. I am Wade Walke. With me today are; Dr.

Arthur Sands

, Lexicon’s President and Chief Executive Officer; Dr. Philip Brown, Lexicon’s Senior Vice President of Clinical Development; and Jeff Wade, Lexicon’s Executive Vice President of Corporate Development and Chief Financial Officer.

We expect that you have seen a copy of our earnings press release was distributed this morning. During this call, we will review the information provided in the release, provide an update on our clinical program, and then is a reminder of our time to answer your questions.

The call will begin with

Dr. Sands

who will discuss our key accomplishment for the second quarter. Dr. Brown will discuss the status of our drug development program. Mr. Wade will review of financial results for the second quarter and discuss our financial guidance for 2010. We will then open the call for your questions. If you would like to review the slides for today’s call, please access the lexicon’s website at www.lexpharma.com. You will see link on the homepage for today’s webcast.

Before we begin, I’d like to state that we’ll be making forward-looking statements, including statements relating to Lexicon’s research and development of LX1031, LX1032, LX1033, LX2931, and LX4211, and the potential therapeutic and commercial potential of those drug candidates. This call may also contain forward-looking statements relating to Lexicon’s future operating results, financial arrangements, cash and investment, discovery and development of products, strategic alliances and intellectual property, various risks that may cause Lexicon’s actual results to differ materially from those expressed or implied in such forward-looking statements including uncertainties relating to the timing and results of clinical trails and preclinical studies of our drug candidate are dependent on strategic alliances and ability to enter into additional collaboration and license agreement. The success and productivity of our drug discovery efforts, our ability to obtain patent protection for our discovery, limitations imposed by patents owned or controlled by third-party and the requirements of substantial funding to protect our drug discovery and development activity. For a list and description of the risks and uncertainties that we face, please see the report we have filed Securities and Exchange Commission.

I’ll now turn the call over to Dr. Sands.

Arthur Sands

Thank you, Wade, and good morning everyone. In keeping with Lexicon’s mission to discover breakthrough treatments for human disease, I’m happy to report we’ve made significant progress over the last quarter and the first half of the year with our four drug candidates that are in mid-stage in the clinical trail. Our progress has further reinforced our first-in-class, best-in-class business strategy with respect differentiating our drug candidate and bringing them forward through development.

So, let me start by highlighting a few of the significant milestone for the last quarter and we’ve move into a more detailed review of the more significant items. So, first of all, with LX4211 we gained new data from this compound from our initial Phase 2a study which is further substantially the dual mechanism of action of inhibiting both SGLT2 and SGLT1. This important mechanistic data was presented at two international meetings, the Endocrinology meeting or Endo meeting where we had both an oral presentation and a poster presentation on the data, and then also the American Diabetes Association International Conference where we presented A poster on the subject. So Dr. Phil Brown will spend some time reviewing this data and actually some elements of the actual presentations that were given at those two meetings, for those who may not have seen those.

For LX1031, we have made very good progress in the new formulation which is progressing and we look forward to, in 2011, testing that in human studies as that progresses. For LX1032, both trials in the United States and Europe have advanced with respect to enrolment and those are on track for readouts around year-end. Similarly, for LX2931, where there we have completed our enrolment, it’s a fully enrolled trial now, the Phase 2a trial, greater than 200 patients. So, we are on track for obtaining results around year end as well.

So very important steady progress on the two lead programs as they move into their Phase 2 key development and then the next program to read out from the proof of concept studies.

In addition on the business front, we achieved I think some rather significant progress. First, the most recent one being successful reacquisition of all the Symphony programs and so and as Jeff Wade review that agreement again. Obviously, that was an agreement which took some in the second quarter to negotiate and we have brought it to completion shortly after the close of the second quarter. When you combine that with our accomplishment in the first quarter of the new financing approximately $181 million in new capital that was active we have done I think a significant amount of work on the financial front to further solidify Lexicon's position.

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