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Lexicon Pharmaceuticals (LXRX)
NASDAQ:LXRX
Top Page
Lexicon Pharmaceuticals
(NASDAQ:LXRX)
42Neutral
Positive Factors
Clinical Trials
The pivotal Phase 3 SONATA trial of sotagliflozin in hypertrophic cardiomyopathy is underway, aiming to expand the treatment options for this condition.
Financial Position
Lexicon ended 2024 with $238 million in cash and investments, providing a sufficient financial runway into the second half of 2026.
R&D Pipeline
Lexicon Pharmaceuticals is advancing pilavapadin's 10mg dose to Phase 3 development in diabetic peripheral neuropathic pain, marking a significant step in their R&D strategy.
Negative Factors
Commercial Challenges
The launch of Inpefa in heart failure has slowed, leading to potential cash runway concerns for Lexicon Pharmaceuticals.
Efficacy Concerns
Concerns about modest efficacy and unclear dose response in Lexicon's Phase 2b PROGRESS trial for pilavapadin led to a downgrade of the analyst's recommendation from Outperform to Market Perform.
Partnership Uncertainty
There is greater uncertainty in Lexicon Pharmaceuticals securing a partner for pilavapadin, affecting the company's strategic options.
Lexicon Pharmaceuticals (LXRX) vs. S&P 500 (SPY)
Market Cap
$118.93M
Dividend YieldN/A
Average Volume (3M)7.68M
Price to Earnings (P/E)―
Beta (1Y)2.65
Revenue Growth2479.34%
EPS Growth18.91%
CountryUS
Employees285
SectorHealthcare
Sector Strength66
IndustryBiotechnology
Share Statistics
EPS (TTM)-0.64
Shares Outstanding361,492,300
10 Day Avg. Volume4,667,728
30 Day Avg. Volume7,684,481
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
$3.67Price Target Upside948.57% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering4
Lexicon Pharmaceuticals Business Overview & Revenue Model
Company DescriptionLexicon Pharmaceuticals, Inc. (LXRX) is a biopharmaceutical company focused on the discovery, development, and commercialization of breakthrough treatments for human diseases. Operating primarily in the pharmaceutical sector, Lexicon leverages its proprietary drug discovery platform to target specific proteins linked to a variety of critical conditions. The company's core products include innovative therapies aimed at addressing unmet medical needs in areas such as diabetes and carcinoid syndrome.
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 revenue improvements, the company needs to focus on achieving profitability and strengthening its balance sheet for 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
Negative
0.35
Price Trends
0.61
Negative
0.77
Negative
1.28
Negative
Market Momentum
-0.08
Negative
32.88
Neutral
40.66
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LXRX, the sentiment is Negative. The current price of 0.35 is below the 20-day moving average (MA) of 0.39, below the 50-day MA of 0.61, and below the 200-day MA of 1.28, indicating a bearish trend. The MACD of -0.08 indicates Negative momentum. The RSI at 32.88 is Neutral, neither overbought nor oversold. The STOCH value of 40.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 (49)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $69.98B | 16.54 | 15.95% | 0.14% | 8.27% | 10.35% | |
75 Outperform | $164.23B | 40.59 | 67.55% | 2.99% | 18.64% | -39.39% | |
67 Neutral | $20.37B | 12.74 | 10.36% | ― | -1.60% | 39.71% | |
66 Neutral | $12.01B | 225.88 | 0.76% | ― | 14.76% | -88.32% | |
64 Neutral | $128.47B | ― | -3.15% | ― | 11.64% | -114.72% | |
49 Neutral | $6.88B | 0.82 | -52.97% | 2.48% | 20.92% | 1.17% | |
42 Neutral | $118.93M | ― | -167.66% | ― | 2479.34% | 18.91% |
* Healthcare Sector Average
Performance Comparison
LXRX
Lexicon Pharmaceuticals
0.35
-2.05
-85.42%
AMGN
Amgen
305.77
29.86
10.82%
BIIB
Biogen
140.33
-75.30
-34.92%
INCY
Incyte
60.68
3.71
6.51%
REGN
Regeneron
635.83
-325.42
-33.85%
VRTX
Vertex Pharmaceuticals
502.55
84.54
20.22%
Lexicon Pharmaceuticals Earnings Call Summary
Earnings Call Date: Mar 6, 2025 | % Change Since: -5.41% | 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.