As previously reported, Gabelli analyst Kevin Kedra downgraded Lexicon (LXRX) to Hold from Buy based on valuation following the $2.00 per share, or roughly 60%, run-up in the stock over the past week. While the stock's recent strength brings the price more in-line with his 2020 private market value estimate of $5.00 per share, Kedra said Sanofi's (SNY) recent announcement that it is shifting focus away from diabetes gives him added confidence that the dissolution of the sotagliflozin partnership was more about Sanofi's strategy than any potential problems or red flags with the Lexicon Phase 3 program in type 2 diabetes. He still has confidence in CEO Lonnel Coats' ability to find another favorable partnership for sotagliflozin, Kedra added.

Reports business EPS of EUR 1.78, down 17.6% reported and 7.4% at CER. Reports Q1 IRFS net sales EUR 10.464B, up 2.4%. Paul Hudson, Chief Executive Officer, commented: "We are off to an excellent start in 2024, delivering on our strategic priorities and a transformation of our portfolio of medicines and vaccines to become a development-driven, tech-powered biopharma company committed to serving patients and accelerating growth. Continued strong performance by Dupixent and our new launches drove sales growth of seven percent. In parallel, we are delivering on our promise of increased investments in our late-stage pipeline to fully realize its value for patients and Sanofi. We are awaiting regulatory decisions for Dupixent in COPD, a progressive disease with limited effective treatment options. If approved, Dupixent will be the first biologic treatment in COPD. With the robust progress in our portfolio transformation, we reaffirm our financial guidance for 2024."