Lexicon Pharmaceuticals, Inc. Q2 2009 Earnings Call Transcript

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2009-07-28 11:21:18.0

Tags: Interest, Partnership, Call Transcript, Earnings, Lexicon Pharmaceuticals Inc., Business Structures, Finance, Seeking Alpha

Question-and-Answer Session

Operator

Certainly, sir. (Operator instructions). We'll pause for just a moment to compile the Q&A roster. Our first question is from Chad Mather [ph].

Chad Mather

Hi guys, good morning. I was wondering on the partnering front if there was any color you can give us. You've got four programs in the clinic. Where are you seeing the most interest?

Arthur Sands

Yes. So the most interest is on the most advanced programs. Our business model is to focus on those programs that will gain pivotal concept through the Phase IIa portion of their development. And I think now that we have these programs that are on deck, that's where we are seeing this interest and we are focused in our whole model there.

Now, having said that, we do continue to have significant interest as well on the early-stage pipeline and the potential for forming new drug discovery alliances based on our novel target discovery and then – which is of course, Lexicon's historical strength. So we do entertain those conversations, but I do think most of the interest is forwarding the pipeline and significantly around the new tryptophan hydroxylase inhibitors. Those two programs with that novel mechanism I think are gaining high interest.

And then, LX2931 with regard to a new small molecule in RA as well. I think that our business model also envisions partnering those indications where large pharma partnerships could aid the company strategically. And so, the larger indications such as type 2 diabetes with LX4211 and RA and IBS I think would be the primary areas that we would be interested in partnership.

Chad Mather

Thanks.

Operator

(Operator instructions). We’ll pause once more to compile the Q&A roster. (Operator instructions). There are no further questions from the phone lines at this time.

Arthur Sands

Great. Well, then we will wrap up. On slide 21, just another reflection on the pipeline. To the question that I did have, I should also mention LX7101 as an area of high interest in glaucoma, as well as our ophthalmology research pipeline. There is relatively little research going on, innovative research and new mechanisms in ophthalmology, for us another area of significant interest.

And then on the next slide, this is the earlier-stage pipeline to which I referred and there we have several antibodies programs and bio-therapeutics programs where we are also active on the partnership front. So that is I think the new frontier for Lexicon to move into a new dimension and new partnerships, focused on our drug candidates and that's where we are spending a significant amount of management time.

 

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