Citi analyst Yigal Nochomovitz raised the firm’s price target on Lexicon Pharmaceuticals to $20 from $18 and keeps a Buy rating on the shares after the company disclosed p-values from RELIEF-DPN-1. It is very likely the initial absence of p-values fueled the stock’s 17% selloff yesterday, but investor questions around the clinical meaningfulness of a 0.67-point placebo-corrected benefit on average daily pain score also contributed, Nochomovitz tells investors in a research note. After analyzing the pain literature, the analyst disagrees with the market’s negative reaction. Relative to other positive trials in diabetic peripheral neuropathy, LX9211 “initially appears to be in the game,” in particular since 45% of patients were receiving background pain medications, writes Nochomovitz.
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