Lexicon Pharmaceuticals, Inc. (NASDAQ:LXRX) Q1 2023 Earnings Call Transcript

What’s been the receptivity so far in terms of the value proposition to covering this and filling this gap in the treatment channel that you’ve talked about?

Jeff Wade: So, to answer the first part of your question, SGLT inhibitors are starting to be used in the hospital setting and its variable among institutions as to how widely they’re being used. But we’re still, at this point, early in the adoption curve for use of SGLT inhibitors for that transition of care patients. And most of the argument for it has been that it’s better to get people on therapy at hospital or upon discharge because they’re likely to stay on therapy if that happens. We’re going to bring our unique data that shows benefits on hard endpoints into that setting. And that’s what we’re going to leverage as we proceed with the commercial launch of sotagliflozin as our area of focus, but it’s already starting to pick up in that area.

The second part of the question was receptivity among payers and hospital systems. I would say — I would characterize that receptivity as being very encouraging. We have a unique value proposition there. We will be publishing data about cost effectiveness and be talking about the value that we bring. But the unique data from SOLOIST has a benefit that uniquely is important to hospital systems and to payers as we think about the people who are really bearing those costs of that re-hospitalization. And the proof that we have from the studies that we ran and from SOLOIST in particular, that shows this benefit in hospital readmissions. And not only overall, but also the 30 and 90 day hospital readmission data that were presented to AHA last year.

So that value proposition, what we can bring to the table from an economic perspective for payers and hospital systems has been resonating very well.

Lonnel Coats: Just add a couple other points to what Jeff was saying. I think it’s important to put in context how recent these guideline changes are that the first guidelines that were the European guidelines only came out less than two years ago. The U.S. combined guidelines around use of SGLT inhibitors at all really only came out a year and a half ago. And this consensus statement in the HFpEF category only came out last week. I think when you think about the fact, as Jeff mentioned, the penetration of SGLT inhibitors is less than 10% currently. And if you think about beta blockers being at 90% and the fact that the SGLT class now is the only class of agents that’s now recommended at a 1A level of recommendation across the entire class of HFrEF and HFpEF, I think the opportunity set for the SGLT inhibitors as a class is quite profound and a huge tailwind at our back.

I think on top of that, the value proposition with sotagliflozin in that transition of care patient, which is the highest unmet need, 25% of these patients coming back to the hospital in 30 days, 65% within a year, a 100 events per 100 patient years in that group of patients. The payers all know there’s a problem there and our data set is unparalleled. There is no other SGLT that can present a data set like ours in that group of patients. So, we think that there’s a really strong class rationale market need and attributes of sotagliflozin as a new agent that support its uptake in use.