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.