Lexicon Pharmaceuticals (LXRX) AI Stock Analysis

• Market Cap: $519.66M
• Dividend Yield: N/A
• Average Volume (3M): 2.06M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.10
• Revenue Growth: 1255.21%
• EPS Growth: 74.58%
• Country: US
• Employees: 103
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.04
• Shares Outstanding: 363,398,680
• 10 Day Avg. Volume: 1,597,923
• 30 Day Avg. Volume: 2,062,775
• PEG Ratio: 0.06
• Price to Book (P/B): 1.62
• Price to Sales (P/S): 7.60
• P/FCF Ratio: -1.31
• Enterprise Value/Market Cap: 0.85
• Enterprise Value/Revenue: 6.20
• Enterprise Value/Gross Profit: 9.84
• Enterprise Value/Ebitda: -9.10
• 1Y Price Target: $3.97
• Price Target Upside: 177.62% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): -0.17
• Revenue Forecast (FY): $44.87M

• Rating: 48 Neutral
• Price Target: $1.50 ▲(4.90% Upside)

Lexicon Pharmaceuticals' overall stock score reflects a challenging financial performance with strong revenue growth but significant profitability and cash flow issues. The technical analysis provides a slightly positive outlook, while the valuation highlights the typical risks associated with biotechnology firms in the development stage. The earnings call suggests a cautiously optimistic future, but the financial challenges weigh heavily on the overall score.

Positive Factors

Revenue Growth

The significant revenue growth indicates strong market demand and successful licensing agreements, enhancing long-term financial prospects.

R&D Advancements

Progress in R&D and strategic partnerships positions Lexicon for future product launches and potential milestone payments, supporting growth.

Operational Efficiency

Reduced operating expenses through strategic repositioning enhance profitability potential, improving long-term financial stability.

Negative Factors

Cash Flow Challenges

Persistent cash flow challenges may limit Lexicon's ability to fund ongoing R&D and operational activities, impacting sustainability.

Profitability Issues

Ongoing profitability issues suggest operational inefficiencies, which could hinder long-term financial health and investment capacity.

Decreased Cash Reserves

Reduced cash reserves may constrain Lexicon's ability to invest in growth opportunities and manage financial obligations effectively.

Lexicon Pharmaceuticals Business Overview & Revenue Model

Company Description

Lexicon Pharmaceuticals (LXRX) is a biopharmaceutical company focused on the discovery, development, and commercialization of novel therapeutics for the treatment of human disease. The company primarily operates in the pharmaceutical sector, specializing in drug development for conditions such as metabolic and neurodegenerative diseases. Lexicon's core products include LX9211, a treatment for diabetic neuropathic pain, and LX2761, aimed at addressing type 1 diabetes, among others.

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 shows strong revenue growth but faces significant challenges in profitability and cash flow. The company has reduced leverage, but ongoing losses and negative cash flows highlight the need for improved operational efficiency.

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	70.86M	31.08M	1.20M	139.00K	298.00K	24.00M
Gross Profit	44.68M	30.46M	-57.77M	-52.38M	-54.75M	22.07M
EBITDA	-48.31M	-184.29M	-169.76M	-100.03M	-86.80M	-41.10M
Net Income	-68.58M	-200.40M	-177.12M	-101.94M	-87.76M	-58.57M
Balance Sheet
Total Assets	205.93M	298.42M	229.43M	194.30M	136.91M	203.79M
Cash, Cash Equivalents and Short-Term Investments	115.95M	237.96M	170.03M	138.36M	86.74M	152.28M
Total Debt	58.15M	108.40M	106.06M	55.29M	2.28M	12.81M
Total Liabilities	85.77M	152.47M	136.32M	77.17M	23.31M	47.42M
Stockholders Equity	120.16M	145.95M	93.11M	117.12M	113.59M	156.37M
Cash Flow
Free Cash Flow	-48.75M	-179.81M	-162.37M	-90.18M	-88.24M	-143.06M
Operating Cash Flow	-48.28M	-178.78M	-161.90M	-88.85M	-87.02M	-142.97M
Investing Cash Flow	109.77M	-15.38M	-49.94M	-71.08M	2.11M	380.76M
Financing Cash Flow	-45.68M	238.35M	187.96M	142.21M	22.71M	-147.64M

Lexicon Pharmaceuticals Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.43
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 1.43 is above the 20-day moving average (MA) of 1.42, above the 50-day MA of 1.41, and above the 200-day MA of 0.94, indicating a bullish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 51.49 is Neutral, neither overbought nor oversold. The STOCH value of 59.00 is Neutral, 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
RIGL	78 Outperform	$924.99M	8.26	220.06%	―	79.13%	2798.12%
RGNX	54 Neutral	$671.26M	―	-76.88%	―	91.30%	30.69%
PRTA	52 Neutral	$578.67M	-2.06	-67.63%	―	-91.16%	-112.24%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
LXRX	48 Neutral	$519.66M	―	-45.92%	―	1255.21%	74.58%
BCYC	41 Neutral	$506.63M	―	-34.63%	―	-23.43%	-9.84%
OPT	39 Underperform	$477.76M	-3.01	―	―	-80.09%	60.14%

Lexicon Pharmaceuticals Corporate Events

Lexicon Pharmaceuticals Files Prospectus for Stock Sale

On November 6, 2025, Lexicon Pharmaceuticals filed a prospectus supplement related to its Open Market Sale Agreement with Jefferies LLC, allowing the sale of up to $75 million in common stock. The filing inadvertently stated that Ernst & Young LLP audited the company’s internal controls, which is not required for Lexicon as a smaller reporting company, highlighting a correction in the documentation.

The most recent analyst rating on (LXRX) stock is a Buy with a $4.00 price target. To see the full list of analyst forecasts on Lexicon Pharmaceuticals stock, see the LXRX Stock Forecast page.

Lexicon Pharmaceuticals Reports Strong Q3 2025 Results

Lexicon Pharmaceuticals is a biopharmaceutical company focused on pioneering medicines to transform patients’ lives, with a robust pipeline targeting heart failure, neuropathic pain, diabetes, and metabolism. In its third-quarter 2025 earnings report, Lexicon Pharmaceuticals highlighted significant progress in its research and development efforts, alongside improved financial performance. The company reported a substantial increase in total revenues to $14.2 million, driven by licensing revenue from Novo Nordisk, and a significant reduction in net loss compared to the previous year. Key developments included the completion of IND-enabling studies for LX9851 for obesity, ongoing Phase 3 trials for sotagliflozin in hypertrophic cardiomyopathy, and preparations for a potential resubmission of Zynquista for type 1 diabetes. Looking forward, Lexicon Pharmaceuticals remains optimistic about 2026, anticipating it to be a pivotal year as strategic initiatives progress, potentially creating lasting value for stakeholders.

Lexicon Pharmaceuticals’ Earnings Call: Optimism Amid Challenges

Lexicon Pharmaceuticals’ recent earnings call revealed a cautiously optimistic outlook, driven by significant revenue growth, strategic R&D advancements, and promising partnerships. Despite challenges such as reduced cash reserves and pending regulatory feedback, the company’s strategic focus on future opportunities was evident.

Lexicon Pharmaceuticals Files Prospectus for Stock Sale

On November 6, 2025, Lexicon Pharmaceuticals filed a prospectus supplement related to its Open Market Sale Agreement with Jefferies LLC, allowing the sale of up to $75 million in common stock. As of that date, no sales had been made under the agreement, and a legal opinion on the validity of the shares was issued by Vinson & Elkins L.L.P.

The most recent analyst rating on (LXRX) stock is a Buy with a $4.00 price target. To see the full list of analyst forecasts on Lexicon Pharmaceuticals stock, see the LXRX Stock Forecast page.