Lexicon Pharmaceuticals (NASDAQ:LXRX), Inc., a pharmaceutical company currently trading at $0.93, has been notified by the NASDAQ Stock Market that it no longer meets the minimum bid price requirement, according to a recent 8-K filing with the Securities and Exchange Commission. According to InvestingPro data, the stock has seen significant volatility, trading between $0.62 and $3.73 over the past 52 weeks.
On January 3, 2025, the company received a notice indicating its common stock had closed below the minimum $1 per share bid price for the past 31 consecutive business days, violating Nasdaq Listing Rule 5450(a)(1).
The company, which is listed under the ticker NASDAQ:LXRX, now has a 180-day period, until July 2, 2025, to regain compliance. To meet the Nasdaq criteria, the closing bid price of Lexicon's common stock must reach at least $1 per share for a minimum of ten consecutive business days during this period. Recent data from InvestingPro shows some positive momentum, with the stock posting a 23.81% return over the past week, though it remains down 45.25% over the last six months.
If Lexicon fails to achieve compliance within the allotted time frame, it may be eligible for an additional 180-day period to meet the requirements, provided it meets all other initial listing standards except the bid price, and submits a written notice of its intention to resolve the issue, potentially through a reverse stock split.
The notice from Nasdaq does not immediately affect the listing of Lexicon's common stock on the Nasdaq Global Select Market. The company has expressed its intent to monitor the stock's closing bid price and to consider available options, including a reverse stock split, subject to stockholder approval and board discretion, to regain compliance.
Lexicon Pharmaceuticals, headquartered in The Woodlands, Texas, is known for its work in pharmaceutical preparations. While InvestingPro analysis indicates the company holds more cash than debt and maintains strong liquidity with a current ratio of 7.45, it faces challenges with negative profit margins and rapid cash burn.
The current situation does not guarantee that the company will meet the minimum bid price requirement in the future or maintain compliance with other Nasdaq listing requirements. InvestingPro subscribers have access to 13 additional key insights and a comprehensive Pro Research Report for deeper analysis of LXRX's financial health and market position.
In other recent news, Lexicon Pharmaceuticals has been making significant developments. Piper Sandler, in its review of biotechnology catalysts for 2025, identified Lexicon Pharmaceuticals as one of the companies with key Phase 2b readouts expected in the coming year. Lexicon's restructuring plan, which includes a 60% workforce reduction and the elimination of commercial operations, is projected to reduce operating costs by $100 million for 2025.
The company is focusing on advancing its clinical development pipeline, with its Phase 3 study for sotagliflozin and a Phase 2b study for LX9211 expected to produce results in Q1 2025.
H.C. Wainwright has reaffirmed its Buy rating for Lexicon, despite adjusting the price target from $6.00 to $4.00. This adjustment followed the FDA's identification of deficiencies in Lexicon's New Drug Application for ZYNQUISTA, a treatment for type 1 diabetes and chronic kidney disease. Despite these challenges, Lexicon reported an 8% quarter-on-quarter growth for its heart failure drug INPEFA, reaching $1.7 million in sales.
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