This episode of The Motley Fool's Market Checkup drills down on the hottest headlines and biggest market movers in the health-care sector.
In this video, health-care analysts David Williamson and Max Macaluso discuss Lexicon Pharmaceuticals' impressive 20% pop after releasing clinical data for LX4211, a type-2 diabetes drug and the company's flagship asset.
Lexicon is targeting a large and lucrative market in diabetes, but that also means it will face stiff competition. Lexicon will have to go toe-to-toe with Johnson & Johnson, which has a similar drug, the recently approved Invokana, on the market, and Forxiga, from a Bristol-Myers Squibb and AstraZeneca partnership, seeking U.S. approval.
David and Max take a closer look at the impact of today's news on Lexicon, the challenges the company will face, and whether investors should hop aboard the stock's bandwagon.
David Williamson owns shares of Johnson & Johnson. Follow David on Twitter: @MotleyDavid. Max Macaluso, Ph.D., has no position in any stocks mentioned. The Motley Fool recommends and owns shares of Johnson & Johnson. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.