tiprankstipranks
Trending News
More News >
Lexeo Therapeutics, Inc. (LXEO)
NASDAQ:LXEO
US Market
Advertisement

Lexeo Therapeutics, Inc. (LXEO) AI Stock Analysis

Compare
161 Followers

Top Page

LXEO

Lexeo Therapeutics, Inc.

(NASDAQ:LXEO)

Rating:38Underperform
Price Target:
Lexeo Therapeutics' overall score is primarily hindered by its poor financial performance, characterized by no revenue and increasing losses. Technical analysis reflects a bearish trend, and valuation metrics are weak due to the company's unprofitability. However, recent positive trial results offer a glimmer of hope for future prospects, slightly balancing the risks. The company's reliance on external financing remains a critical risk factor.
Positive Factors
Clinical Progress
Lexeo's LX2020 has demonstrated a remarkable safety profile with no treatment-related serious adverse events to date across both dose cohorts.
Financial Stability
The private placement agreement extends cash runway into 2028, providing financial stability for the company.
Regulatory Alignment
Lexeo recently aligned with the FDA on additional elements of the accelerated development pathway for LX2006 in FA cardiomyopathy, which seems generally favorable based on available data.
Negative Factors
Market Sentiment
LXEO trades at negative enterprise value despite the positive update, reflecting poor sentiment in gene therapy and broader market sell-off.
Regulatory Uncertainty
There are ongoing debates on regulatory uncertainty with new leadership at the FDA's Center for Biologics Evaluation and Research.
Stock Performance
Shares have underperformed significantly compared to the broader index, highlighting investor concerns.

Lexeo Therapeutics, Inc. (LXEO) vs. SPDR S&P 500 ETF (SPY)

Lexeo Therapeutics, Inc. Business Overview & Revenue Model

Company DescriptionLexeo Therapeutics, Inc. (LXEO) is a biotechnology company focused on developing gene therapy treatments for genetic cardiovascular diseases, central nervous system disorders, and rare monogenic disorders. The company leverages advanced scientific research to create innovative therapies aimed at addressing unmet medical needs and improving patient outcomes.
How the Company Makes MoneyLexeo Therapeutics, Inc. generates revenue primarily through the development and commercialization of its gene therapy products. The company may earn income from licensing agreements, research and development collaborations, and partnerships with pharmaceutical companies. Additionally, Lexeo may receive funding through grants, government contracts, or milestone payments related to the clinical progression and commercialization of its therapies. Strategic alliances and partnerships with larger pharmaceutical companies could also contribute to Lexeo's revenue stream, providing access to broader distribution networks and additional resources for product development.

Lexeo Therapeutics, Inc. Financial Statement Overview

Summary
Lexeo Therapeutics faces significant operational risks with no revenue and growing losses, as reflected by its income statement. While the balance sheet shows improved equity positions, high liabilities remain a concern. The cash flow situation indicates a heavy reliance on external financing, posing long-term sustainability risks.
Income Statement
20
Very Negative
Over the last five years, Lexeo Therapeutics has consistently reported no revenue, highlighting the challenges in revenue generation typical in the biotech industry. The company has faced substantial net losses, with a deteriorating net income trend from -$5.15 million in 2020 to -$98.33 million in 2024. The absence of EBIT and EBITDA margins further underscores the company's struggle to achieve profitability. This trend indicates a high-risk profile with substantial room for improvement in operational efficiency and revenue generation.
Balance Sheet
45
Neutral
Lexeo Therapeutics maintains a relatively strong equity position with stockholders' equity increasing from a negative position in 2020 to $116.84 million in 2024. The debt-to-equity ratio has improved due to reduced liabilities and increased equity, indicating prudent financial management. However, the company’s total assets have only seen modest growth, limiting its expansion potential. The equity ratio is positive, but the high liabilities relative to assets remain a concern.
Cash Flow
30
Negative
The cash flow statement shows a consistent trend of negative operating cash flow, with a significant increase in cash outflow from operations in 2024 compared to previous years. Free cash flow remains negative, indicating ongoing challenges in cash generation. The company relies heavily on financing activities, as seen from the positive financing cash flows, to sustain its operations. This reliance poses risks if external funding sources diminish.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue0.000.00654.00K1.66M518.48K
Gross Profit0.00-1.84M-491.00K1.64M518.48K
EBITDA-96.22M-66.67M-58.04M-50.62M-4.59M
Net Income-98.33M-66.39M-59.28M-50.62M-5.15M
Balance Sheet
Total Assets146.94M139.81M97.08M136.86M29.41M
Cash, Cash Equivalents and Short-Term Investments121.52M121.47M77.33M135.86M29.37M
Total Debt9.92M11.64M13.48M0.003.01M
Total Liabilities30.10M26.27M210.03M192.46M34.95M
Stockholders Equity116.84M113.53M-112.95M-55.60M-5.54M
Cash Flow
Free Cash Flow-81.63M-59.66M-55.46M-44.37M-3.13M
Operating Cash Flow-81.15M-59.50M-54.56M-44.18M-3.13M
Investing Cash Flow-94.08M-165.00K-901.00K-188.00K0.00
Financing Cash Flow88.78M103.79M189.00K150.86M32.38M

Lexeo Therapeutics, Inc. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price4.26
Price Trends
50DMA
3.83
Positive
100DMA
3.46
Positive
200DMA
5.05
Negative
Market Momentum
MACD
0.02
Positive
RSI
54.44
Neutral
STOCH
48.39
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LXEO, the sentiment is Positive. The current price of 4.26 is above the 20-day moving average (MA) of 4.24, above the 50-day MA of 3.83, and below the 200-day MA of 5.05, indicating a neutral trend. The MACD of 0.02 indicates Positive momentum. The RSI at 54.44 is Neutral, neither overbought nor oversold. The STOCH value of 48.39 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LXEO.

Lexeo Therapeutics, Inc. Risk Analysis

Lexeo Therapeutics, Inc. disclosed 79 risk factors in its most recent earnings report. Lexeo Therapeutics, Inc. reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Lexeo Therapeutics, Inc. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (52)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
52
Neutral
$7.58B0.27-63.12%2.36%16.16%1.30%
44
Neutral
$100.44M-122.69%20.91%
38
Underperform
$141.42M-80.65%-24.18%
36
Underperform
$88.44M-55.68%-57.45%
35
Underperform
$102.64M-156.81%-10.99%
28
Underperform
$60.14M-2355.27%-100.00%52.65%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
LXEO
Lexeo Therapeutics, Inc.
4.10
-8.62
-67.77%
BMEA
Biomea Fusion
1.65
-3.67
-68.98%
UNCY
Unicycive Therapeutics
4.42
0.22
5.24%
ABOS
Acumen Pharmaceuticals
1.38
-2.04
-59.65%
IVVD
Invivyd
0.81
-0.38
-31.93%

Lexeo Therapeutics, Inc. Corporate Events

Product-Related AnnouncementsBusiness Operations and Strategy
Lexeo Therapeutics Reports Positive Interim Trial Results
Positive
Apr 7, 2025

On April 7, 2025, Lexeo Therapeutics announced positive interim results from their Phase 1/2 clinical trial of LX2006, a potential first-in-class treatment for Friedreich ataxia cardiomyopathy. The data showed significant improvements in cardiac biomarkers, including a 25% reduction in Left Ventricular Mass Index (LVMI) among participants with abnormal baseline levels, and demonstrated the treatment’s safety and efficacy. This progress aligns with FDA guidelines for an accelerated approval pathway, positioning Lexeo to initiate a registrational study by late 2025 or early 2026.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Apr 20, 2025