Lexicon Pharmaceuticals, Inc.

Ladies and gentlemen, thank you for standing by and welcome to Lexicon Pharmaceuticals' first quarter 2020 financial results and business update call. All lines have been placed on mute to prevent any background noise. Following management's prepared remarks, we will hold a question and answer session. As a reminder, this call is being recorded today, April 27, 2020. I will now turn the call over to Dr. Kimberly Lee, Head of Investor Relations and Corporate Strategy. Please go ahead.

Thank you. Good morning and welcome to the Lexicon Pharmaceuticals First Quarter 2020 Financial Results and Business Update Conference Call. Joining me on today's call are Lynelle Coates, Lexicon's President and Chief Executive Officer, Alex Santini, Executive Vice President and Chief Commercial Officer, Dr. Pablo Lapuerta, Executive Vice President and Chief Medical Officer Dr. Praveen Tile, Executive Vice President of Research and Development and Jeff Wade, Executive Vice President of Corporate and Administrative Affairs and Chief Financial Officer. After our formal remarks, we will open the call up for Q&A. Earlier today, Lexicon issued a press release announcing our financial results for the first quarter of 2020. which is available on our website at www.lexpharma.com and through our SEC filings. A webcast of this call along with a slide presentation will be accessible in the Investor Relations section of our website. During this call, we will review the information provided in the release, provide an update on our clinical programs, and then use the remainder of our time to answer your questions. Before we begin, let me remind you that we will be making forward-looking statements, including statements relating to the safety and efficacy and the therapeutic and commercial potential of Zermelo, Zynquista, LX9211, and our other drug candidates. These statements may include characterizations of the commercial performance of Zermelo, the expected timing and results of clinical trials of telestroset ethyl, LX9211, and our other drug candidates, and the regulatory status and market opportunity for those programs. This column may also contain forward-looking statements relating to the growth and future operating results, discovery and development of our drug candidates, strategic alliances and intellectual property, as well as other matters that are not historical facts or information. Various risks may cause our actual results to differ materially from those expressed or implied in such forward-looking statements. These risks include uncertainties related to the success of our commercialization efforts for Zermelo, The timing and results of clinical trials and preclinical studies of teletraset ethyl, LX9211, and our other drug candidates Our dependence upon strategic alliances and other third-party relationships Our ability to obtain patent protection for discoveries Limitations imposed by patents owned or controlled by third parties And the requirements of substantial funding to conduct our research, development, and commercialization activities For a list and a description of the risks and uncertainties that we face, please see the reports we have filed with the Securities and Exchange Commission. With that, I'd like to now turn the call over to our President and CEO, Lynell Coates.

Thank you, Kim. Good morning, everyone, and thanks for joining us on the call today. In the first quarter, we continued to grow Zimelo at double digits and made progress on our pipeline while effectively managing our resources and spending. I will elaborate on some of the key achievements and will then turn the call over to Pablo and Jeff for updates on our pipeline developments and financial results, respectively. Starting with Zamello, we achieved U.S. net sales of $7.9 million in the first quarter of 2020, up 17% from the corresponding period in 2019. We saw a continuous strong demand growth in dispenses and had stable inventory. For the year, we remain on track to see percentage growth in U.S. net sales year-over-year in the mid-teens. We're making good progress on the Phase II telotrastate ethyl study in biliary tract cancer with the first efficacy cohort now fully enrolled. In addition, we are gearing up to initiate a proof-of-concept study for LX9211 in diabetic peripheral neuropathic pain. Dr. Leperta will be speaking about these programs shortly. We continue to believe that the benefit-risk profile of Sotagliflozin is positive for people with Type 1 diabetes. With this in mind, we are evaluating next steps for Sotagliflozin in pursuit of an approval in the United States. As announced last month, we are closing out the two Sotagliflozin outcome studies, SCORD and SOLOIS, in Type 2 diabetes, heart failure, and chronic kidney disease. We continue to work closely with investigators to complete the near-term closeout Going forward, we will be in a better position to be able to prioritize and focus our investments on Zomelo and Carcinoid Syndrome Diarrhea and Bilearic Tract Cancer and LX9211 and Neuropathic Pain, as well as the advancement of our discovery pipeline. We ended the first quarter with approximately $249 million in cash and short-term investments. We will continue to prudently manage our balance sheet. We expect that our working capital should be sufficient to support our operating expenses through 2021. With that, I'll turn the call over to Pablo to review our pipeline.