The biotech sector's notorious for the boom-or-bust potential of many of its stocks, and investors in Lexicon Pharmaceuticals (NASDAQ:LXRX) have felt that pressure over the past year. In that time, Lexicon's shares have plummeted by more than 26%. While it's full of potential, it is still engaged in clinical trials for the drugs that one day could generate big sales for this up-and-coming biotech company and its shareholders. But is this stock's slump setting up for a big rebound?
Lexicon's hard at work developing several promising pipeline drugs. Its clinical-stage diabetes therapy, LX4211, is undergoing trials for both type 2 and type 1 diabetes, and approval down the road could mean up to $2 billion in peak annual sales, according to estimates from Morningstar. Lexicon's also undergoing several other trials exploring further treatments, and investors are keeping a close eye on how this company fares in the next few years. They could make or break Lexicon's future as more than just a clinical-stage biotech.
But can Lexicon deliver for investors? Find out whether this stock could be biotech's next big boom in the video below, as Motley Fool contributor Dan Carroll takes you through three keys to watch at this exciting biotech company -- and how this stock can turn it around in the near future.
Even if Lexicon has great trial results and a fantastic 2014, it could still struggle to keep up with this top stock
Give me five minutes and I'll show how you could own the best stock for 2014. Every year, The Motley Fool's chief investment officer hand-picks 1 stock with outstanding potential. But it's not just any run-of-the-mill company. It's a stock perfectly positioned to cash in on one of the upcoming year's most lucrative trends. Last year his pick skyrocketed 134%. And previous top picks have gained upwards of 908%, 1,252% and 1,303% over the subsequent years! Believe me, you don't want to miss what could be his biggest winner yet! Just click here to download your free copy of "The Motley Fool's Top Stock for 2014" today.
Dan Carroll 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 may not 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.