0001062822-13-000034.txt : 20131112 0001062822-13-000034.hdr.sgml : 20131111 20131112081349 ACCESSION NUMBER: 0001062822-13-000034 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20131112 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20131112 DATE AS OF CHANGE: 20131112 FILER: COMPANY DATA: COMPANY CONFORMED NAME: LEXICON PHARMACEUTICALS, INC./DE CENTRAL INDEX KEY: 0001062822 STANDARD INDUSTRIAL CLASSIFICATION: PHARMACEUTICAL PREPARATIONS [2834] IRS NUMBER: 760474169 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-30111 FILM NUMBER: 131207090 BUSINESS ADDRESS: STREET 1: 8800 TECHNOLOGY FOREST PLACE CITY: THE WOODLANDS STATE: TX ZIP: 77381 BUSINESS PHONE: 2818633000 MAIL ADDRESS: STREET 1: 8800 TECHNOLOGY FOREST PLACE CITY: THE WOODLANDS STATE: TX ZIP: 77381 FORMER COMPANY: FORMER CONFORMED NAME: LEXICON GENETICS INC/TX DATE OF NAME CHANGE: 20000126 8-K 1 form8-kearningssept.htm FORM 8-K Form 8-K Earnings (September 30 2013)


 
 
 
 
 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

__________________

FORM 8-K
__________________

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934


Date of Report (Date of earliest event reported): November 12, 2013


Lexicon Pharmaceuticals, Inc.
(Exact name of registrant as specified in its charter)


Delaware
000-30111
76-0474169
(State or other jurisdiction of
incorporation or organization)
(Commission File Number)
(I.R.S. Employer
Identification Number)


8800 Technology Forest Place
The Woodlands, Texas 77381
(Address of principal executive
offices and Zip Code)

(281) 863-3000
(Registrant’s telephone number,
including area code)


Check the appropriate box below if the Form 8‑K filing is intended to simultaneously satisfy the filing obligations of the registrant under any of the following provisions:
o
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o
Soliciting material pursuant to Rule 14a‑12 under the Exchange Act (17 CFR 240.14a‑12)
o
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d‑2(b))
o
Pre-commencement communications pursuant to Rule 13e‑4(c) under the Exchange Act (17 CFR 240.13e‑4(c))
 
 
 
 
 





Item 2.02
Results of Operations and Financial Condition

On November 12, 2013, we issued a press release to report our financial results for the quarter ended September 30, 2013. A copy of the press release is attached to this current report on Form 8-K as Exhibit 99.1.
The information in this Form 8-K and the Exhibit attached to this Form 8-K shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act, except as expressly set forth by specific reference in such a filing.

Item 9.01
Financial Statements and Exhibits

(d)    Exhibits

Exhibit No.
Description
99.1
—
Press Release of Lexicon Pharmaceuticals, Inc. dated November 12, 2013






Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

 
Lexicon Pharmaceuticals, Inc.
 
 
 
 
 
 
Date: November 12, 2013
By:
/s/ Brian T. Crum
 
 
Brian T. Crum
 
 
Vice President and General Counsel







Index to Exhibits

Exhibit No.
Description
99.1
—
Press Release of Lexicon Pharmaceuticals, Inc. dated November 12, 2013




 EX-99.1 2 pressrelease11-12x2013.htm PRESS RELEASE Press Release (11-12-2013)


Exhibit 99.1

LEXICON PHARMACEUTICALS PROVIDES CLINICAL PIPELINE UPDATE AND
REPORTS 2013 THIRD QUARTER FINANCIAL RESULTS

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


The Woodlands, Texas, November 12, 2013 - 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
•
LX4211: 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.

•
Telotristat 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.

•
LX1033: 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 Operations Data
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
(In thousands, except per share data)
 
2013
 
2012
 
2013
 
2012
 
 
(unaudited)
 
(unaudited)
Revenues:
 
 
 
 
 
 
 
 
Collaborative research
 
$
238

 
$
214

 
$
733

 
$
565

Subscription and license fees
 
—

 
158

 
79

 
306

Total revenues
 
238

 
372

 
812

 
871

Operating expenses:
 
 
 
 
 
 
 
 
Research and development, including stock-based compensation
of $1,027, $923, $3,379 and $2,875, respectively
 
25,400

 
19,192

 
69,419

 
61,584

Increase in fair value of Symphony Icon, Inc. purchase liability
 
1,338

 
5,844

 
3,079

 
10,087

General and administrative, including stock-based compensation
of $723, $669, $2,349 and $2,030, respectively
 
4,716

 
4,396

 
13,709

 
13,123

Total operating expenses
 
31,454

 
29,432

 
86,207

 
84,794

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.
 
$
(31,658
)
 
$
(29,539
)
 
$
(86,712
)
 
$
(85,338
)
 
 
 
 
 
 
 
 
 
Consolidated net loss per common share, basic and diluted
 
$
(0.06
)
 
$
(0.06
)
 
$
(0.17
)
 
$
(0.18
)
 
 
 
 
 
 
 
 
 
Shares used in computing net loss attributable to Lexicon Pharmaceuticals, Inc. per common share, basic and diluted
 
513,419

 
490,049

 
512,980

 
483,693



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


Contact for Lexicon:

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