Lexicon sold off on increased competition concerns, says Citi
Citi analyst Yigal Nochomovitz attributes the 10% selloff yesterday in shares of Lexicon Pharmaceuticals to increased competition after the 24-week results from the Depict1 trial for dapagliflozin in type 1 diabetes were presented. The data are broadly in line with what we've seen from sotagliflozin, suggesting a similar efficacy and safety profile between the two drugs, Nochomovitz tells investors in a research note. He reminds investors that he always expected competition in the adjunctive type 1 diabetes space, and currently models 35% peak share for sotagliflozin, which he thinks leaves "plenty of room for another SGLT inhibitor." The analyst has a Buy rating on Lexicon with a $35 price target.