Lexicon Pharmaceuticals Faces FDA Setback for Zynquista
Lexicon Pharmaceuticals and the FDA's Critical Review
This past Thursday, Lexicon Pharmaceuticals Inc. faced a significant hurdle when the FDA’s advisory committee reviewed the company’s New Drug Application (NDA) for Zynquista (sotagliflozin). The substance, designed as an oral SGLT1/SGLT2 inhibitor, aims to complement insulin therapy for glycemic control in adults with type 1 diabetes (T1D) and chronic kidney disease (CKD).
Advisory Committee’s Vote
The committee delivered a clear verdict, voting 11 to 3 against the benefits of Zynquista when weighed against its associated risks. This determination came as a surprise to some, especially considering that it primarily targets individuals with an estimated glomerular filtration rate (eGFR) between 45 to less than 60 mL/min/1.73 m² or above 60 mL/min/1.73 m² with specific uACR thresholds.
Advocacy for Alternative Approvals
Throughout the discussion, various members expressed potential support for sotagliflozin in certain sub-populations of patients that could stand to gain from its use. This debate raises important questions about patient-specific therapies and how best to align clinical benefits with regulatory approvals.
Previous FDA Decisions
The ongoing battle with the FDA is not new for Lexicon. Back in 2019, the agency issued a complete response letter regarding the NDA for sotagliflozin concerning type 1 diabetes. While the FDA’s initial assessment did not favor the drug, it's noteworthy that it gained approval from the European Medicines Agency around the same time, reflecting a divided perspective on its efficacy across regions.
Resubmissions and Future Prospects
In June, Lexicon resubmitted its NDA, anticipating a lengthy six-month review. The company projects a possible launch in early 2025. The FDA has marked a Prescription Drug User Fee Act (PDUFA) target date for its decision. As of late 2023, discussions continued with the FDA regarding a more favorable path for the resubmission.
Strategic Alliances and Commercial Growth
Lexicon has been proactive in securing its position in the pharmaceutical market. In 2019, Lexicon and Sanofi SA ended their collaboration, leading to a substantial settlement where Sanofi paid $260 million to Lexicon. Currently, Lexicon plans to commercialize sotagliflozin solely in the U.S. and Europe while granting Viatris Inc. exclusive rights for its commercialization in other indications globally.
Investment and Market Reactions
Following the advisory committee's decision, the stock performance of Lexicon, represented by LXRX, has suffered significantly. As of the last trading session, LXRX stock witnessed a steep decline of 38.46%, with shares trading at $1.22 during premarket evaluations.
Looking Ahead
The future for Zynquista hangs in a delicate balance as Lexicon Pharmaceuticals endeavors to navigate regulatory waters while addressing the market’s expectations and patient needs. Further developments on its NDA resubmission are eagerly awaited by stakeholders within the healthcare sector.
Frequently Asked Questions
What was the FDA's decision regarding Zynquista?
The FDA advisory committee voted 11 to 3 against Zynquista, indicating the risks outweigh the potential benefits.
What is Zynquista intended for?
Zynquista is designed as an adjunct to insulin therapy for managing blood sugar levels in adults with type 1 diabetes and chronic kidney disease.
What were the previous FDA interactions regarding Zynquista?
Previous interactions included a complete response letter in 2019, followed by an eventual approval from the European Medicines Agency.
What are Lexicon's future plans for Zynquista?
Lexicon plans to resubmit its NDA and aims for a potential launch in early 2025 if reviews proceed favorably.
How has stock performance been affected?
Following the advisory vote, Lexicon's stock (LXRX) experienced a significant drop of 38.46% to $1.22 in premarket trading.
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