Lexicon Pharmaceuticals Inc. filed SEC Form 8-K: Costs Associated with Exit or Disposal Activities
$LXRX
Biotechnology: Pharmaceutical Preparations
Health Care
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 8-K
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CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): November 22, 2024
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Item 2.05 Costs Associated with Exit or Disposal Activities.
Following our receipt of a "deficiencies preclude discussion" letter from the U.S. Food and Drug Administration regarding our New Drug Application for ZYNQUISTA™ (sotagliflozin) as an adjunct to insulin therapy for glycemic control in adults with type 1 diabetes and chronic kidney disease, on November 22, 2024 we determined to eliminate our commercial operations and rationalize resources across all functions in order to preserve cash and focus our resources on advancing our clinical development pipeline.
In connection with such determination, we intend to implement a reduction in force which will reduce our workforce by approximately sixty percent. We estimate that we will incur an aggregate of approximately $9.0 million to $10.5 million in pre-tax charges in connection with severance and other employee costs associated with the reduction in force, most of which will be paid in the first quarter of 2025 and all of which are expected to be cash expenditures.
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
| Lexicon Pharmaceuticals, Inc. | ||||||||
| Date: November 22, 2024 | By: | /s/ Brian T. Crum | ||||||
| Brian T. Crum | ||||||||
Senior Vice President and General Counsel | ||||||||