What will be the expected share price of LxRx after getting regulatory approvals in October 2024

Lexicon Pharmaceuticals (LXRX) is not currently expected to experience a significant increase in share price following regulatory approvals in October 2024. Here's why:

1. Regulatory Approval Status: LXRX's drug, ZYNQUISTA (sotagliflozin), is awaiting FDA approval with an anticipated event date of October 31, 2024. However, the FDA approval status is listed as "Pending," which suggests that the approval is not yet granted.

2. Market Sentiment and Analyst Ratings: The average price target for LXRX as of October 24, 2024, is $10, which is significantly higher than the current closing price of $1.84. This indicates that analysts believe the stock has potential for growth. However, the upcoming regulatory approvals may not necessarily lead to an immediate surge in the share price.

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3. Recent Strategic Moves and Financial Impact: Lexicon Pharmaceuticals has recently entered into a licensing agreement with Viatris for the commercialization of sotagliflozin outside of the U.S. and Europe. This deal is seen as a strategic move that could reinforce Lexicon's position in the cardiometabolic space and provide valuable royalties and milestones. While this agreement could positively influence the long-term outlook for the company, the impact on the share price in the short term might be limited.
4. Financial Projections and Sales Outlook: There is optimism about the potential sales inflection of Inpefa (sotagliflozin) for heart failure into 2025 and the outcome of the FDA advisory committee meeting for Zynquista, which could provide a favorable outlook for the drug's potential approval in the U.S. by the PDUFA date of December 20, 2024. However, these events are in the future and may not necessarily lead to an immediate boost in the share price.
5. Current Stock Price and Market Conditions: The stock is currently trading at a low price, which could indicate that some negative sentiments are already priced in. Regulatory approvals might serve as a positive catalyst, but the extent of the price increase would depend on various factors, including market conditions and investor sentiment.

In conclusion, while regulatory approvals can be a positive catalyst for a stock's price, the expected share price of LXRX after getting regulatory approvals in October 2024 is not likely to be significantly higher than its current price due to the pending nature of the approvals and the market's anticipation of these events. The potential for a more substantial increase in the share price might be seen in the longer term, as the market digests the implications of the licensing agreement and the potential future sales of Inpefa and Zynquista.