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Lexicon Pharmaceuticals (LXRX)
NASDAQ:LXRX
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Lexicon Pharmaceuticals
(NASDAQ:LXRX)
44Neutral
Positive Factors
Financial Position
Lexicon is eligible to receive up to $1 billion in upfront and potential development, regulatory, and sales milestone payments.
Product Development
The preclinical oral obesity asset LX9851 is considered the most interesting in the pipeline.
Strategic Partnerships
Lexicon's exclusive licensing agreement with Novo Nordisk for its obesity asset LX9851 is a key positive development that substantially validates LXRX's obesity platform and provides much-needed capital flexibility.
Negative Factors
Clinical Risks
There are remaining execution risks across LXRX's clinical pipeline and anticipated cash burn.
Financial Concerns
The cash balance of $238M is modeled to be sufficient only into the second half of 2026.
Revenue Performance
Following the elimination of all promotional efforts, U.S. net product revenue for INPEFA remained flat compared to the previous quarter.
Lexicon Pharmaceuticals (LXRX) vs. S&P 500 (SPY)
Market Cap
$184.29M
Dividend YieldN/A
Average Volume (3M)23.65M
Price to Earnings (P/E)―
Beta (1Y)2.51
Revenue Growth2479.34%
EPS Growth18.91%
CountryUS
Employees103
SectorHealthcare
Sector Strength66
IndustryBiotechnology
Share Statistics
EPS (TTM)-0.64
Shares Outstanding361,492,300
10 Day Avg. Volume8,461,024
30 Day Avg. Volume23,653,176
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)4.22
Price to Cash Flow (P/CF)-1.50
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$5.00Price Target Upside880.39% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
Lexicon Pharmaceuticals Business Overview & Revenue Model
Company DescriptionLexicon Pharmaceuticals, Inc., a biopharmaceutical company, focuses on the discovery, development, and commercialization of pharmaceutical products. Its orally-delivered small molecule drug candidates under development comprise Sotagliflozin that completed Phase III clinical trials for the for the treatment of heart failure and type 1 diabetes; and LX9211, which is in Phase II clinical development for the treatment of neuropathic pain. The company has strategic collaboration and license agreements with Bristol-Myers Squibb Company, and Genentech, Inc. Lexicon Pharmaceuticals, Inc. was incorporated in 1995 and is headquartered in The Woodlands, Texas.
How the Company Makes MoneyLexicon Pharmaceuticals makes money through the development and commercialization of pharmaceutical products. The company generates revenue by licensing its drug candidates to larger pharmaceutical companies, which may handle further development, manufacturing, and marketing. Additionally, Lexicon earns money through the sale of its approved drugs, such as those for the treatment of diabetes and other conditions. Revenue streams also include milestone payments and royalties from partnerships and collaborations with other biotech and pharmaceutical companies. Significant partnerships with entities that have the capability to advance clinical trials and market drugs on a larger scale play a crucial role in Lexicon's earnings strategy.
Lexicon Pharmaceuticals Financial Statement Overview
Summary
Lexicon Pharmaceuticals is facing financial challenges primarily due to sustained losses and negative cash flows, despite some improvements in revenue. The company needs to focus on achieving profitability and strengthening its balance sheet to ensure long-term sustainability.Income Statement
Lexicon Pharmaceuticals has shown inconsistent revenue growth, with a significant increase in revenue from 2023 to 2024. However, profitability remains a concern, as evidenced by negative EBIT and net income, resulting in poor EBIT and net profit margins. The company needs to focus on improving its operational efficiency to achieve sustainable profitability.45
Neutral
Balance Sheet
The balance sheet shows a solid cash position, but the company has experienced fluctuating stockholder equity and significant liabilities. The debt-to-equity ratio is favorable due to low or zero debt, but negative equity in previous years highlights a need for balance sheet strengthening. Return on equity is not meaningful due to negative net income and equity in past years.40
Negative
Cash Flow
Although operating cash flow remains negative, the company successfully secured financing in 2024, improving liquidity. Free cash flow growth is negative, indicating challenges in generating cash from operations. The company needs to continue to improve cash flow management and reduce capital expenditures.50
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 31.08M | 1.20M | 139.00K | 298.00K | 24.00M | Gross Profit |
| 30.46M | 1.12M | -288.00K | -54.75M | 22.07M | EBIT |
| -197.12M | -171.75M | -100.76M | -87.09M | -178.78M | EBITDA |
| -184.29M | -163.46M | -98.74M | -86.66M | -41.10M | Net Income Common Stockholders |
| -200.40M | -177.12M | -103.13M | -88.27M | -70.18M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 237.96M | 170.03M | 138.36M | 86.74M | 152.28M | Total Assets |
| 298.42M | 229.43M | 194.30M | 136.91M | 203.79M | Total Debt |
| 108.40M | 106.06M | 55.29M | 2.28M | 12.81M | Net Debt |
| 41.74M | 83.60M | 8.95M | -61.79M | -113.45M | Total Liabilities |
| 152.47M | 136.32M | 77.17M | 23.31M | 47.42M | Stockholders Equity |
| 145.95M | 93.11M | -1.59B | -1.49B | 156.37M |
| Cash Flow | Free Cash Flow | |||
| -179.81M | -162.37M | -90.18M | -88.24M | -143.06M | Operating Cash Flow |
| -178.78M | -161.90M | -88.85M | -87.02M | -142.97M | Investing Cash Flow |
| -15.38M | -49.94M | -71.08M | 2.11M | 380.76M | Financing Cash Flow |
| 238.35M | 187.96M | 142.21M | 22.71M | -147.64M |
Lexicon Pharmaceuticals Technical Analysis
Neutral
0.51
Price Trends
0.51
Negative
0.65
Negative
1.17
Negative
Market Momentum
<0.01
Negative
53.38
Neutral
61.62
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LXRX, the sentiment is Neutral. The current price of 0.51 is above the 20-day moving average (MA) of 0.46, below the 50-day MA of 0.51, and below the 200-day MA of 1.17, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 53.38 is Neutral, neither overbought nor oversold. The STOCH value of 61.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for LXRX.
Lexicon Pharmaceuticals Risk Analysis
Lexicon Pharmaceuticals disclosed 38 risk factors in its most recent earnings report. Lexicon Pharmaceuticals reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Lexicon Pharmaceuticals Peers Comparison
Overall Rating
UnderperformOutperform
Sector (50)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $203.67M | 99.24 | 7.64% | ― | -18.47% | -70.64% | |
58 Neutral | $187.70M | ― | -135.96% | ― | ― | 0.58% | |
50 Neutral | $5.51B | 2.95 | -43.70% | 2.78% | 16.94% | 3.59% | |
48 Neutral | $211.33M | ― | 322.49% | ― | -33.83% | 27.89% | |
44 Neutral | $184.29M | ― | -167.66% | ― | 2479.34% | 18.91% | |
44 Neutral | $209.51M | ― | -29.56% | ― | ― | 10.98% | |
33 Underperform | $191.43M | ― | -122.54% | ― | ― | 81.94% |
* Healthcare Sector Average
Performance Comparison
LXRX
Lexicon Pharmaceuticals
0.51
-1.20
-70.18%
PLX
Protalix
2.61
1.43
121.19%
DBVT
DBV Technologies SA - American
7.98
1.37
20.73%
GOSS
Gossamer Bio
0.84
0.10
13.51%
FHTX
Foghorn Therapeutics
3.80
-1.25
-24.75%
TERN
Terns Pharmaceuticals
2.40
-2.42
-50.21%
Lexicon Pharmaceuticals Earnings Call Summary
Earnings Call Date: Mar 6, 2025 | % Change Since: 37.84% | Next Earnings Date: May 1, 2025
Earnings Call Sentiment Neutral
The earnings call presents a mixed outlook. While there were significant achievements in clinical trials, licensing agreements, and financial position improvements, these were balanced by increased net losses, operating expenses, and market challenges in the US heart failure sector.Highlights
Successful Phase 2b PROGRESS Study
The PROGRESS Phase 2b study of pillabapentin for diabetic peripheral neuropathic pain (DPNP) showed a clear separation in ADPS from baseline, with the 10-milligram dose showing meaningful improvement compared to placebo and improved tolerability.
Significant Licensing Agreement
Lexicon entered into a significant licensing agreement with Beatrice for sotagliflozin outside of the US and Europe, contributing a $25 million upfront payment.
Strong Financial Position
Ended 2024 with $238 million in cash, cash equivalents, and short-term investments, an increase from $170 million at the end of 2023.
Potential of Sotagliflozin
Research highlighted sotagliflozin's effects in reducing major adverse cardiovascular events, myocardial infarction, and stroke, showing promise as a differentiated SGLT1 and 2 inhibitor.
Lowlights
Net Loss Increase
Net loss for the full year 2024 was $200.4 million, compared to $177.1 million in 2023, mainly due to increased R&D and SG&A expenses.
Challenges in US Heart Failure Market
Promotion of Impepper in the US heart failure market was ceased due to a difficult market access environment dominated by major SGLT2 inhibitors.
Increased Operating Expenses
Full year 2024 SG&A expenses rose to $143.1 million from $114 million in 2023, reflecting higher marketing costs and increased employee salaries before a reduction in the sales force.
Company Guidance
In the recent Lexicon Pharmaceuticals conference call discussing their fourth quarter and full year 2024 financial results, the company provided several key metrics and updates on their clinical programs. Lexicon reported a net loss of $33.8 million for the fourth quarter, compared to a $49.8 million loss in the same period in 2023. Revenue for the fourth quarter was $26.6 million, with $31.1 million for the full year. They ended 2024 with $238 million in cash and investments, up from $170 million at the end of 2023. The company outlined plans for their clinical trials, including the PROGRESS Phase 2b study of pillabapentin, which showed a 1.74-point reduction in ADPS at the 10-milligram dose. Additionally, Lexicon is advancing their LX9851 IND enabling studies and anticipates filing in 2025. For 2025, they expect total operating expenses between $135 million and $145 million, with R&D expenses projected at $100 million to $105 million.Lexicon Pharmaceuticals Corporate Events
Executive/Board Changes
Lexicon Pharmaceuticals Appoints New CFO Scott M. Coiante
Neutral
Jan 2, 2025
Lexicon Pharmaceuticals announced the appointment of Scott M. Coiante as senior vice president and chief financial officer, effective January 2, 2025. Coiante, a certified public accountant with extensive experience in senior financial roles at various biotechnology and pharmaceutical companies, will receive a base salary of $450,000 and be eligible for performance-based bonuses and stock options as part of his compensation package.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.