Lexicon Pharmaceuticals , Inc. (NASDAQ:LXRX), a biopharmaceutical company, announced today that Michael Exton, Ph.D., has been appointed as the new Chief Executive Officer and elected to the company's board of directors. Additionally, Jeffrey L. Wade has been promoted to President and Chief Operating Officer.
Dr. Michael Exton, 54, brings a wealth of experience from his 14-year tenure at Novartis (SIX:NOVN), where he most recently served as the Cardiometabolism Therapeutic Head. His prior roles at Novartis include Vice President and Global Head of the Cardiovascular Renal and Metabolism Franchise.
Before Novartis, Dr. Exton held positions at Invida Pty Ltd and Eli Lilly (NYSE:LLY) Australia, focusing on research, business development, and commercial roles. He holds a B.Sc. and a Ph.D. in neuroscience from the University of Newcastle and a Ph.D. in immunology from the University of Essen, Germany.
In his new role at Lexicon, Dr. Exton's compensation includes an annual base salary of $636,000 and eligibility for an annual cash bonus with a target of 70% of his base salary.
If terminated without cause, he will receive his current salary for twelve months, with an additional one-time payment equal to his bonus target if the termination is related to a change in control. Dr. Exton has also been granted a stock option to purchase 1,675,000 shares of common stock under the company's 2017 Equity Incentive Plan.
Jeffrey L. Wade's promotion from President and Chief Financial Officer to President and Chief Operating Officer comes with an increase in his annual base salary from $560,000 to $585,000 and an increase in his bonus target from 50% to 60% of his base salary. Mr. Wade has also been granted a stock option to purchase 307,000 shares of common stock.
These executive changes, effective today, were not made pursuant to any arrangement or understanding with any other person. There are no family relationships or material transactions involving Dr. Exton or Mr. Wade that require disclosure.
The information reported is based on a press release statement.
In other recent news, Lexicon Pharmaceuticals has been the subject of several key developments. H.C. Wainwright initiated coverage on Lexicon Pharmaceuticals with a 'Buy' rating, highlighting the company's commitment to innovative approaches and growth potential.
The firm underscored the potential of Lexicon's diverse pipeline, including INPEFA, a drug already commercialized for heart failure, and the late-stage opportunities for sotagliflozin and LX9211.
Meanwhile, Piper Sandler also reaffirmed its 'Overweight' rating on Lexicon's stock, citing the upcoming launch of INPEFA and the expansion of sotagliflozin into hypertrophic cardiomyopathy and type 1 diabetes with chronic kidney disease by mid-2024 as key catalysts.
In the financial sphere, Lexicon reported a net loss of $48.4 million in the first quarter of 2024, with revenue of $1.1 million. Despite this, the company successfully raised $250 million in an oversubscribed offering to support their programs. Furthermore, Lexicon's CEO, Lonnel Coats, announced his retirement effective July 7th, 2024.
The company provided full-year expense guidance, projecting R&D expenses between $70 million to $80 million and total operating expenses ranging from $210 million to $235 million. These recent developments underline the ongoing progress and future plans of Lexicon Pharmaceuticals.
InvestingPro Insights
With the recent executive shake-up at Lexicon Pharmaceuticals, investors may be keen to understand the financial landscape of the company. According to InvestingPro data, Lexicon Pharmaceuticals holds a market capitalization of approximately $603.69 million. Despite the challenges faced by the company, as evidenced by a negative P/E ratio of -1.97 reflecting its current lack of profitability, analysts see potential upside. They anticipate sales growth in the current year, which is supported by a staggering revenue growth of 1733.33% over the last twelve months as of Q1 2024.
Moreover, an InvestingPro Tip highlights that Lexicon Pharmaceuticals holds more cash than debt on its balance sheet, which is a positive sign of the company's liquidity and financial health. Additionally, liquid assets exceed short-term obligations, providing some cushion for the company's operations. For investors looking for more in-depth analysis, there are 6 additional InvestingPro Tips available, which can be accessed with a subscription. To enrich your investment strategy, use coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
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