Lexicon Pharmaceuticals: Late-Stage Pipeline Catalysts and Strategic Partnerships Underpin Buy Rating

In a report released today, Joseph Pantginis from H.C. Wainwright maintained a Buy rating on Lexicon Pharmaceuticals, with a price target of $4.00.

Joseph Pantginis has given his Buy rating due to a combination of factors tied to Lexicon’s advancing late-stage pipeline and upcoming catalysts. He points to the company’s neuropathic pain candidate, pilavapidin, where recent and forthcoming end-of-Phase 2 interactions with regulators are expected to guide the design of two pivotal Phase 3 trials and potentially facilitate a partnership transaction. In hypertrophic cardiomyopathy, he notes that the global SONATA Phase 3 trial of sotagliflozin is fully activated across more than 130 sites, enrolling both obstructive and non-obstructive patients, with completion of enrollment targeted for mid‑2026 and top-line data in early 2027. Pantginis underscores sotagliflozin’s differentiated clinical and safety profile, which in his view could allow the drug to establish itself as a first-in-class option in a competitive cardiometabolic landscape.

Pantginis’s rating is based on the view that 2026–2027 will bring multiple data and regulatory inflection points that can unlock significant value. He highlights Lexicon’s preparations for a possible resubmission of the ZYNQUISTA NDA in type 1 diabetes, supported by ongoing discussions with the FDA and real-world safety data from the STENO1 study, which may give the program a renewed regulatory pathway despite its higher risk profile. In addition, he factors in the strategic value and non-dilutive funding from the obesity collaboration with Novo Nordisk, where completion of preclinical work has already triggered a milestone payment and could lead to further milestones and eventual royalties if the program advances clinically. Collectively, the diversified late-stage pipeline, the prospect of meaningful milestones, and the potential for business development activity support his positive stance on the stock and underpin his Buy recommendation.

In another report released on January 12, Citi also maintained a Buy rating on the stock with a $2.10 price target.