Lexicon Pharmaceuticals (LXRX) AI Stock Analysis

• Market Cap: $483.32M
• Dividend Yield: N/A
• Average Volume (3M): 2.06M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.37
• Revenue Growth: 1504.83%
• EPS Growth: 56.81%
• Country: US
• Employees: 103
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): 0.01
• Shares Outstanding: 363,398,860
• 10 Day Avg. Volume: 2,512,485
• 30 Day Avg. Volume: 2,064,085
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.55
• Enterprise Value/Revenue: 4.56
• Enterprise Value/Gross Profit: 4.61
• Enterprise Value/Ebitda: -2.42
• 1Y Price Target: $2.75
• Price Target Upside: 105.22% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

• Rating: 61 Neutral
• Price Target: $1.50 ▲(11.94% Upside)

Lexicon Pharmaceuticals' overall score is driven by strong earnings call results and positive technical analysis, despite financial performance challenges. The company's strategic repositioning and regained Nasdaq compliance are positive, but profitability and cash flow issues remain significant risks.

Positive Factors

Revenue Growth

Strong revenue growth driven by licensing agreements indicates successful strategic partnerships and potential for sustained top-line expansion.

Strategic Repositioning

The strategic pivot to an R&D focus enhances operational efficiency and positions the company for long-term growth in drug development.

Nasdaq Compliance

Regaining Nasdaq compliance stabilizes market position and reassures stakeholders, supporting long-term corporate governance and investor confidence.

Negative Factors

Profitability Challenges

Ongoing profitability issues highlight operational inefficiencies, which could hinder sustainable growth and financial health over the long term.

Cash Flow Issues

Negative cash flows indicate potential liquidity constraints, limiting the company's ability to invest in growth and manage debt effectively.

Dependence on Partnerships

Heavy reliance on partnerships introduces risks if collaborations falter, affecting drug development timelines and revenue streams.

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 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 Money

Lexicon Pharmaceuticals generates revenue primarily through the commercialization of its pharmaceutical products and potential milestone payments from partnerships with larger pharmaceutical companies. The company may receive royalties on product sales in addition to upfront payments for licensing agreements. Lexicon's strategic collaborations with industry partners allow it to leverage resources for drug development, which can lead to shared revenues upon successful product launches. Furthermore, the company may also benefit from grants and research funding aimed at supporting innovative therapeutic research.

Lexicon Pharmaceuticals Financial Statement Overview

Summary

Lexicon Pharmaceuticals exhibits strong revenue growth but faces significant challenges with profitability and cash flow. The company has improved its leverage but continues to struggle with operational inefficiencies and negative cash flows.

Income Statement

Lexicon Pharmaceuticals shows a significant revenue growth rate of 87.2% in the TTM period, indicating strong top-line expansion. However, the company is struggling with profitability, as evidenced by negative net profit margins and EBIT margins. The gross profit margin is high at 98.9%, but the substantial operating losses suggest high operational costs or inefficiencies.

Balance Sheet

The company's debt-to-equity ratio has improved to 0.47 in the TTM period, indicating a moderate level of leverage. However, the return on equity remains negative, reflecting ongoing net losses. The equity ratio is not explicitly calculated, but the balance sheet shows a reasonable level of equity relative to assets.

Cash Flow

Lexicon Pharmaceuticals has negative operating and free cash flows, with a declining free cash flow growth rate of -39.05% in the TTM period. The operating cash flow to net income ratio is negative, indicating cash flow challenges. However, the free cash flow to net income ratio is slightly above 1, suggesting some alignment between cash flow and reported earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	58.43M	31.08M	1.20M	139.00K	298.00K	24.00M
Gross Profit	57.77M	30.46M	1.12M	-288.00K	-54.75M	22.07M
EBITDA	-109.84M	-184.29M	-163.46M	-98.74M	-86.66M	-41.10M
Net Income	-120.62M	-200.40M	-177.12M	-103.13M	-88.27M	-70.18M
Balance Sheet
Total Assets	225.58M	298.42M	229.43M	194.30M	136.91M	203.79M
Cash, Cash Equivalents and Short-Term Investments	139.01M	237.96M	170.03M	138.36M	86.74M	152.28M
Total Debt	61.45M	108.40M	106.06M	55.29M	2.28M	12.81M
Total Liabilities	96.14M	152.47M	136.32M	77.17M	23.31M	47.42M
Stockholders Equity	129.44M	145.95M	93.11M	117.12M	-1.49B	156.37M
Cash Flow
Free Cash Flow	-102.68M	-179.81M	-162.37M	-90.18M	-88.24M	-143.06M
Operating Cash Flow	-101.89M	-178.78M	-161.90M	-88.85M	-87.02M	-142.97M
Investing Cash Flow	163.23M	-15.38M	-49.94M	-71.08M	2.11M	380.76M
Financing Cash Flow	-46.59M	238.35M	187.96M	142.21M	22.71M	-147.64M

Lexicon Pharmaceuticals Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.34
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 1.34 is above the 20-day moving average (MA) of 1.15, above the 50-day MA of 1.14, and above the 200-day MA of 0.80, indicating a bullish trend. The MACD of 0.04 indicates Negative momentum. The RSI at 66.48 is Neutral, neither overbought nor oversold. The STOCH value of 87.25 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LXRX.

Lexicon Pharmaceuticals Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PLX	68 Neutral	164.25M	27.57	6.79%	―	62.79%	―
LXRX	61 Neutral	$483.32M	―	-65.30%	―	1504.83%	56.81%
DBVT	46 Neutral	252.70M	-1.58	-415.94%	―	―	-22.19%
TERN	45 Neutral	688.71M	-7.12	―	―	―	20.37%
FHTX	40 Neutral	277.56M	-3.78	98.35%	―	-31.30%	36.26%
GOSS	35 Underperform	679.87M	-4.54	―	―	-58.02%	-57.23%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Lexicon Pharmaceuticals Corporate Events

Lexicon Pharmaceuticals Regains Nasdaq Compliance

On July 23, 2025, Lexicon Pharmaceuticals, a company listed on The NASDAQ Stock Market, received confirmation from Nasdaq that it has regained compliance with the minimum $1 bid price requirement for its common stock, resolving a previous issue. This development marks a positive step for Lexicon Pharmaceuticals, potentially stabilizing its market position and reassuring stakeholders about the company’s adherence to listing standards.

Lexicon Pharmaceuticals Granted Nasdaq Compliance Extension

On July 3, 2025, Lexicon Pharmaceuticals received a letter from Nasdaq indicating eligibility for an additional 180-day period to regain compliance with the minimum $1 bid price requirement for its common stock. The company applied to transfer its stock from the Nasdaq Global Select Market to the Nasdaq Capital Market, which was approved, and the transfer will occur on July 7, 2025. This move allows Lexicon Pharmaceuticals more time to meet the bid price requirement, with plans to potentially implement a reverse stock split if necessary.

Lexicon Pharmaceuticals Holds Annual Stockholder Meeting

On June 2, 2025, Lexicon Pharmaceuticals held its annual meeting of stockholders to vote on several key proposals. The meeting resulted in the election of Class I Directors, amendments to the company’s equity incentive plans, approval of a potential reverse stock split, an advisory vote on executive compensation, and the ratification of Ernst & Young LLP as independent auditors for the fiscal year ending December 31, 2025. These decisions reflect strategic moves to enhance corporate governance and financial management, potentially impacting shareholder value and market perception.