Active Stocks: Lexicon Pharmaceuticals, Inc [NASDAQ: LXRX] was a huge gainer in Wednesday’s session. The stock shot up by 29.25% to close the day at $3.80. This stock has been on a sustained rally for the whole of September, after months of decline. I last covered this stock back on July 30, 2019, when it had a sharp drop in value and was trading at only $1.70. Since then it has seen a 128% gain and move from $1.70 to a high of $3.89 yesterday. On July 30, 2019 in my news article titled, “Active stocks: Lexicon Pharmaceuticals (LXRX) shares tumble after notice from Sanofi”, I noted that LXRX price had been affected by a decision by Sanofi to end their alliance for the development of Zynquista. I also stated that I felt LXRX was oversold back then. Well, it has performed quite well in under 2 months returning a 128% gain potential to its investors.
Positive sentiment around LXRX started building up after the company announced that it had reached an agreement to settle disputes surrounding the terminated partnership with Sanofi SA. Under the deal, Lexicon retains rights to Sotagliflozin. The company announced that it will now take over the worldwide development as well as commercialization of this diabetes treatment. This excited the market, and LXRX rallied by over 30% in a single session. Since then, it has been gaining bullish momentum to date, including yesterday’s 29.25% gains.
From a look at its charts, it is clear that this stock has been in a bull run recently. In has closed higher for the past 5-days and the trading volume has risen steadily as well. As of yesterday’s close, the volume was around 15.95 million shares.
Besides the successful end to its partnership, other key factors that could impact on this and other stocks is the market perception of the Fed rate cut. Yesterday, U.S equities dropped as investors tried to make sense of fresh policy decisions from the FED.