Lexicon Pharmaceuticals (NASDAQ: LXRX) shares saw a dramatic rise in volume after releasing new tumor drug data. On Friday, the company released new information and clinical data about its proposed drug Telotristat. Lexicon is developing Telotristat as a treatment option for a carcinogenic condition created by tumors in the gastrointestinal tract. This carcinoid syndrome affects innumerable people every single year and is known to cause severe diarrhea. Severe and chronic diarrhea gives rise to a variety of issues like malnutrition, heart problems and in some cases, death.
Orphan Drug – Telotristat
The new drug Telotristat has been awarded an orphan drug status by the U.S. Food and Drug Administration (FDA). As per the orphan drug system, the FDA will not approve any similar products for the next seven years if Telotristat is approved. This offers Lexicon Pharmaceuticals a chance at market monopoly for the treatment of this condition. The status of an orphan drug is only awarded to those drugs that will be used to treat rare health conditions. The European Union regulatory bodies have also awarded Telotristat an orphan drug status.
Phase 3 Clinical Trial Initiated
A registrational Phase 3 clinical trial has been initiated for Telotristat Etiprate. The drug has also been given a fast track status by the FDA. A fast track status means that Lexicon can benefit from meetings with regulators and the drug might receive a six-month priority review if all goes well with the Phase 3 trials.
About Lexicon Pharmaceuticals
A leading biopharmaceutical company, Lexicon Pharmaceuticals is focusing on the discovery of revolutionizing treatments of human diseases. Other than the carcinoid syndrome, Lexicon is currently involved in developing drug programs for other human diseases such as irritable bowel syndrome, diabetes and rheumatoid arthritis. All of these drugs were discovered and are being developed by researchers at Lexicon Pharmaceuticals. With more than 100 promising drug programs and targets, the company is one of the world’s leading drug discovery pharmaceutical companies.
After the announcement of commencement of Phase 3 trials for Telotristat, the company has become one of the most actively traded stocks on the NASDAQ. With market capitalization of over $1.2 billion, Lexicon Pharmaceuticals is a mid-cap company that has seen its share value rise substantially. The latest news indicates a minor drop in share value and the company. Lexicon shares closed today’s trading session at $2.55 per share, down from $2.69 per share for a loss of 5.2% today.
Another mid-cap company, United Therapeutics (NASDAQ: UTHR), a biotechnology company focusing on the development and commercial selling of rare products that are designed to meet the needs of patients suffering from chronic diseases, saw its share price rise just under 0.1% today to reach $55.38 per share. Delaware-based Salix Pharmaceuticals (NASDAQ: SLXP) is a mid-cap company that is currently trading at $40.06 and has witnessed a slight rise of 0.6% as of Monday, October 15.
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