08:43 AM EST, 11/22/2024 (MT Newswires) -- Lexicon Pharmaceuticals ( LXRX ) said Friday it plans to cut 60% of its workforce, with most departures effective by Dec. 31, as part of a shift to focus on its clinical development pipeline.

The company said it will eliminate commercial operations, including promotional efforts for Inpefa and planned activities for Zynquista, to conserve cash and advance high-impact research programs.

The restructuring follows an FDA letter identifying deficiencies in the new drug application for Zynquista as an adjunct to insulin therapy for type 1 diabetes and chronic kidney disease.

The drug developer said that Inpefa will remain available to patients and prescribers.

Lexicon anticipates a $100 million reduction in 2025 operating costs, in addition to $40 million in savings announced earlier this year.

The company will focus on key programs, including a phase 2 study of LX9211 for diabetic peripheral neuropathic pain, a phase 3 study of sotagliflozin for hypertrophic cardiomyopathy, and IND-enabling studies of LX9851 for obesity and cardiometabolic disorders.

Lexicon shares were 4% lower in premarket trading.