** Shares of Lexicon Pharmaceuticals LXRX.O drop 11.75% to 63 cents before the bell

** Late on Friday, U.S. FDA declined to approve the biopharma company's add-on drug for type 1 diabetes and chronic kidney disease

** Company had previously disclosed its strategic decision to discontinue launch preparations for the drug

** Company had said in November it would reduce its workforce by about 60%, after the U.S. FDA noted deficiencies in its application seeking approval for its diabetes drug

** LXRX to focus on development of other products

** A panel of advisers to the FDA had voted against recommending the drug, sotagliflozin, as an add-on treatment to insulin therapy for managing blood glucose levels in adults with type 1 diabetes and chronic kidney disease

** Up to last close, stock down ~53% YTD

(Reporting by Sriparna Roy in Bengaluru)

((Sriparna.Roy@thomsonreuters.com;))