Lexicon Pharma Shares Rally 48% Premarket On Positive Trial Of Diabetes Treatment

Shares of Lexicon Pharmaceuticals Inc. rallied a stunning 48% in premarket trade Friday, after the company reported positive results from a late-stage trial of a treatment for type 1 diabetes. The company said the Phase 3 trial of sotagliflozin met its primary endpoint, showing a statistically significant improvement in blood sugar control in patients with type 1 diabetes on a background of optimized insulin. The improvement was made without an increase in severe hypoglycemia, a serious health challenge in type 1 diabetes. Lexicon is working with Sanofi to develop the compound for use in type 1 and type 2 diabetes. Shares were up 15% in the year through Thursday's close, while the S&P 500 has gained 7%.