THE WOODLANDS, Texas, Jan. 22, 2009 (GLOBE NEWSWIRE) -- Lexicon Pharmaceuticals, Inc. (Nasdaq:LXRX), a biopharmaceutical company focused on discovering and developing breakthrough treatments for human disease, announced today a restructuring of its operations to conserve capital and direct resources towards its most advanced drug discovery and development programs. The restructuring will involve a workforce reduction of 102 employees, primarily in basic research, early-stage discovery and support positions, representing approximately 22% of its total workforce.
Following these changes, Lexicon will focus its drug discovery efforts in core therapeutic areas, including immunology, metabolism/cardiology, and ophthalmology, from which it has obtained its multiple drug candidates in development. Lexicon currently has two drug candidates in Phase 2 development, LX1031 for irritable bowel syndrome and LX1032 for carcinoid syndrome, and two drug candidates in Phase 1 trials, LX2931 for rheumatoid arthritis and LX4211 for diabetes. In addition, the company has a significant preclinical research and development pipeline, including LX7101 for glaucoma.
Lexicon expects to reduce its expenses by approximately $8.0 million, net of severance costs, for the balance of 2009 and approximately $11.0 million on an annualized basis. As of September 30, 2008, Lexicon had $177.3 million in cash and investments.
"We are grateful for the significant contributions and the dedication of the employees affected by this consolidation," said Arthur T. Sands, M.D., Ph.D., president and chief executive officer. "However, these challenging economic times require us to further focus our financial and human resources on key drug discovery and development programs we can efficiently advance through clinical development towards commercialization."
About Lexicon
Lexicon is a biopharmaceutical company focused on discovering and developing breakthrough treatments for human disease. Lexicon currently has five drug candidates in development for autoimmune disease, carcinoid syndrome, diabetes, glaucoma and irritable bowel syndrome, all of which were discovered by the company's research team. The company has used its proprietary gene knockout technology to identify more than 100 promising drug targets. Lexicon has focused drug discovery efforts on these biologically-validated targets to create its extensive pipeline of clinical and preclinical programs. For additional information about Lexicon and its programs, please visit www.lexpharma.com.
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Safe Harbor Statement
This press release contains "forward-looking statements," including statements relating to Lexicon's growth and future operating results, discovery and development of products, strategic alliances and intellectual property, as well as other matters that are not historical facts or information. All forward-looking statements are based on management's current assumptions and expectations and involve risks, uncertainties and other important factors, specifically including those relating to Lexicon's ability to successfully conduct preclinical and clinical development of its potential drug candidates, advance additional candidates into preclinical and clinical development, obtain necessary regulatory approvals, achieve its operational objectives, obtain patent protection for its discoveries and establish strategic alliances, as well as additional factors relating to manufacturing, intellectual property rights, and the therapeutic or commercial value of its drug candidates, that may cause Lexicon's actual results to be materially different from any future results expressed or implied by such forward-looking statements. Information identifying such important factors is contained under "Factors Affecting Forward-Looking Statements" and "Risk Factors" in Lexicon's annual report on Form 10-K for the year ended December 31, 2007, as filed with the Securities and Exchange Commission. Lexicon undertakes no obligation to update or revise any such forward-looking statements, whether as a result of new information, future events or otherwise.