Lexicon Pharmaceuticals (LXRX)
NASDAQ:LXRX
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Lexicon Pharmaceuticals
(NASDAQ:LXRX)
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Rating:55Neutral
Price Target:
$2.50
▲(33.69% Upside)
Action:Reiterated
Date:05/10/26
The score is most constrained by weak financial performance (ongoing losses and cash burn) and limited valuation support (negative P/E, no dividend). Offsetting these are constructive technical momentum and a relatively positive earnings-call outlook driven by multiple clinical/regulatory catalysts and improved cost discipline.
Positive Factors
Late-stage pipeline
Lexicon’s portfolio includes multiple late-stage programs (sotagliflozin, pilovapitan, LX9851) with staggered catalysts into 2026–2027. That diversification reduces single-binary risk, expands potential value-creating pathways (approvals, partnerships, milestones) and supports longer-term revenue optionality.
Negative Factors
Persistent cash burn
Despite improvement, negative operating and free cash flow of roughly -$39M TTM means the business still consumes cash. Continued burn elevates financing risk, can force dilution or onerous partnerships, and constrains the company’s ability to self-fund late-stage trials or scale commercialization without external capital.
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Positive Factors
Negative Factors
Late-stage pipeline
Lexicon’s portfolio includes multiple late-stage programs (sotagliflozin, pilovapitan, LX9851) with staggered catalysts into 2026–2027. That diversification reduces single-binary risk, expands potential value-creating pathways (approvals, partnerships, milestones) and supports longer-term revenue optionality.
Read all positive factors
Lexicon Pharmaceuticals (LXRX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$968.35M
Dividend YieldN/A
Average Volume (3M)2.73M
Price to Earnings (P/E)―
Beta (1Y)1.98
Revenue Growth123.12%
EPS Growth86.10%
CountryUS
Employees103
SectorHealthcare
Sector Strength45
IndustryBiotechnology
Share Statistics
EPS (TTM)-0.07
Shares Outstanding444,196,380
10 Day Avg. Volume2,184,639
30 Day Avg. Volume2,730,029
Financial Highlights & Ratios
PEG Ratio0.11
Price to Book (P/B)3.88
Price to Sales (P/S)8.38
P/FCF Ratio-6.15
Enterprise Value/Market Cap1.02
Enterprise Value/Revenue14.19
Enterprise Value/Gross Profit14.32
Enterprise Value/Ebitda-48.49
Forecast
1Y Price Target
$4.03Price Target Upside115.24% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)-0.16
Revenue Forecast (FY)$38.17M
Lexicon Pharmaceuticals Business Overview & Revenue Model
Company Description
Lexicon 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 ...
How the Company Makes Money
Lexicon generates revenue primarily through a combination of (1) collaboration and licensing arrangements and (2) product-related revenue when it commercializes a therapy itself or receives economics from a partner’s commercialization. Under colla...
Lexicon Pharmaceuticals Earnings Call Summary
Earnings Call Date:Mar 05, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Jul 30, 2026
Earnings Call Sentiment Positive
The call conveyed strong program-level progress and meaningful financial discipline: multiple regulatory and clinical catalysts are in motion (Sonata enrollment, potential Zynquista resubmission, pilovapitan Phase III readiness, LX9851 milestones), operating expenses and losses were substantially reduced, and the company strengthened its cash position post-period. Offsetting risks include reliance on third-party STENO-1 data for Zynquista, modest INPEFA sales, a reduced year-end cash balance prior to the subsequent raise, and the need to partner to advance pilovapitan into Phase III. On balance, the positive pipeline and financial improvements materially outweigh the remaining execution and external-data risks.Positive Updates
Strong pipeline momentum with multiple late-stage programs
Advancing three late-stage programs (sotagliflozin, pilovapitan, LX9851) across cardiometabolic disease and chronic pain with multiple near-term catalysts in 2026–2027; company emphasizes potential for first-in-class opportunities and transformative patient impact.
Negative Updates
Year-end cash decline and continued reliance on capital raises
Cash, investments, and restricted cash fell to $125.2M as of 12/31/2025 from $238.0M as of 12/31/2024 (≈-47.4%); company subsequently raised >$100M but remains reliant on milestone and equity funding to support development and catalysts.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong pipeline momentum with multiple late-stage programs
Advancing three late-stage programs (sotagliflozin, pilovapitan, LX9851) across cardiometabolic disease and chronic pain with multiple near-term catalysts in 2026–2027; company emphasizes potential for first-in-class opportunities and transformative patient impact.
Read all positive updates
Company Guidance
Management gave detailed near‑term operational and financial guidance: Sonata HCM is now >50% enrolled across 130+ sites in ~20 countries with enrollment expected to complete by mid‑2026 and top‑line results in 2027; the STENO‑1 investigator study (≈2,000 patients: ~1,000 standard care/1,000 enhanced care) is meeting FDA exposure and DKA safety criteria (FDA DKA threshold ≈3.5 cases/100 patient‑years, NNH ≈26), supporting an NDA resubmission with a six‑month review and potential approval in 2026; pilovapitan cleared for Phase III (two placebo‑controlled, 12‑week, two‑arm registrational trials of 10 mg daily vs placebo, primary endpoint: change in average daily pain to Week 12) after >600 patients of prior experience; LX9851 triggered a $10M Novo milestone with up to $20M more possible in 2026; Q4 revenues were $5.5M and FY2025 revenues $49.8M (including $45M licensing revenue and $4.6M INPEFA net sales for the year), Q4 net loss was $15.5M ($0.04/share) and FY net loss $50.3M ($0.14/share), cash and investments were $125.2M at 12/31/2025 and have been strengthened by >$100M in subsequent proceeds/milestone, debt was reduced ≈$46.3M in 2025, and 2026 expense guidance is total operating expenses $100–110M (R&D $63–68M, excluding pilovapitan Phase III costs; SG&A $37–42M).Lexicon Pharmaceuticals Financial Statement Overview
Summary
Income Statement
46
Neutral
Balance Sheet
62
Positive
Cash Flow
34
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 69.64M | 49.80M | 31.08M | 1.20M | 139.00K | 298.00K |
| Gross Profit | 69.00M | 49.53M | 30.46M | -57.77M | -52.38M | -54.75M |
| EBITDA | -20.38M | -48.29M | -184.29M | -169.76M | -100.03M | -86.80M |
| Net Income | -26.09M | -50.34M | -200.40M | -177.12M | -101.94M | -87.76M |
Balance Sheet | ||||||
| Total Assets | 268.82M | 184.99M | 298.42M | 229.43M | 194.30M | 136.91M |
| Cash, Cash Equivalents and Short-Term Investments | 170.66M | 96.23M | 237.96M | 170.03M | 138.36M | 86.74M |
| Total Debt | 57.71M | 62.24M | 108.40M | 106.06M | 55.29M | 2.28M |
| Total Liabilities | 65.96M | 77.45M | 152.47M | 136.32M | 77.17M | 23.31M |
| Stockholders Equity | 202.86M | 107.54M | 145.95M | 93.11M | 117.12M | 113.59M |
Cash Flow | ||||||
| Free Cash Flow | -38.80M | -67.85M | -179.81M | -162.37M | -90.18M | -88.24M |
| Operating Cash Flow | -38.80M | -67.85M | -178.78M | -161.90M | -88.85M | -87.02M |
| Investing Cash Flow | 2.17M | 113.02M | -15.38M | -49.94M | -71.08M | 2.11M |
| Financing Cash Flow | 40.83M | -48.50M | 238.35M | 187.96M | 142.21M | 22.71M |
Lexicon Pharmaceuticals Technical Analysis
Positive
1.87
Price Trends
1.84
Positive
1.64
Positive
1.47
Positive
Market Momentum
0.11
Positive
58.09
Neutral
50.53
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LXRX, the sentiment is Positive. The current price of 1.87 is below the 20-day moving average (MA) of 2.07, above the 50-day MA of 1.84, and above the 200-day MA of 1.47, indicating a bullish trend. The MACD of 0.11 indicates Positive momentum. The RSI at 58.09 is Neutral, neither overbought nor oversold. The STOCH value of 50.53 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | $564.13M | 1.54 | 147.03% | ― | 47.61% | 854.73% | |
55 Neutral | $968.35M | -33.44 | -18.64% | ― | 123.12% | 86.10% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
51 Neutral | $326.93M | -1.49 | -35.74% | ― | 146.03% | -0.87% | |
50 Neutral | $532.96M | -3.62 | -49.88% | ― | -57.99% | -37.06% | |
48 Neutral | $362.40M | -1.27 | -232.50% | ― | -43.96% | -78.31% |
* Healthcare Sector Average
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Lexicon Pharmaceuticals Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Lexicon Pharmaceuticals Secures New Hercules Term Loan Facility
Positive
May 6, 2026
On May 4, 2026, Lexicon Pharmaceuticals entered a loan and security agreement with Hercules Capital that provides up to $100 million in term loans maturing in May 2030, with an initial $55 million tranche funded at closing to refinance an existing...
Business Operations and StrategyRegulatory Filings and ComplianceShareholder Meetings
Lexicon Shareholders Approve New Equity Plans, Capital Increase
Positive
Apr 30, 2026
On April 30, 2026, Lexicon Pharmaceuticals’ stockholders approved new 2026 equity incentive plans for employees and non-employee directors, replacing the 2017 plans, lifting the share pool for employee awards to 90 million and for directors ...
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.