Lexicon Pharmaceuticals (LXRX)
NASDAQ:LXRX
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Lexicon Pharmaceuticals
(NASDAQ:LXRX)
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Rating:53Neutral
Price Target:
$2.00
▲(6.95% Upside)
Action:Reiterated
Date:06/01/26
The score is primarily held back by weak financial performance—continued losses and negative free cash flow despite improving revenue and a stronger balance sheet. Technicals are constructive with a clear uptrend and healthy momentum, while valuation remains challenged by negative earnings. The latest earnings call was directionally positive on liquidity and milestone timelines, but revenue quality and execution/regulatory risks remain key.
Positive Factors
Late-stage pipeline momentum
Lexicon has multiple near-term regulatory and clinical catalysts: SONATA-HCM enrollment expected mid-2026 with topline in Q1 2027 and Zynquista NDA resubmission targeted mid-2026. These late-stage events can materially de-risk programs, enable approvals, and create durable commercial optionality or partnership value if successful.
Negative Factors
Negative cash flow profile
Lexicon remains cash-flow negative on a TTM basis (operating and free cash flow about -$39M), meaning operations do not yet self-fund. Persisting cash burn creates durable financing risk: absent recurring revenues or repeat milestones, the company may need additional debt, partnerships, or equity, which can constrain strategic choices and dilute shareholders.
Read all positive and negative factors
Positive Factors
Negative Factors
Late-stage pipeline momentum
Lexicon has multiple near-term regulatory and clinical catalysts: SONATA-HCM enrollment expected mid-2026 with topline in Q1 2027 and Zynquista NDA resubmission targeted mid-2026. These late-stage events can materially de-risk programs, enable approvals, and create durable commercial optionality or partnership value if successful.
Read all positive factors
Lexicon Pharmaceuticals (LXRX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$892.83M
Dividend YieldN/A
Average Volume (3M)2.94M
Price to Earnings (P/E)―
Beta (1Y)2.04
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. Volume2,131,254
30 Day Avg. Volume2,943,081
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 Cap1.04
Enterprise Value/Revenue13.29
Enterprise Value/Gross Profit13.42
Enterprise Value/Ebitda-53.08
Forecast
1Y Price Target
$5.03Price Target Upside169.16% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
EPS Forecast (FY)-0.16
Revenue Forecast (FY)$38.17M
Lexicon Pharmaceuticals Business Overview & Revenue Model
Company Description
Lexicon Pharmaceuticals, Inc. is a biopharmaceutical company dedicated to the end-to-end process of identifying, advancing, and bringing to market novel therapeutic compounds. Its development pipeline includes orally administered small molecule dr...
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:May 07, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 30, 2026
Earnings Call Sentiment Positive
The call emphasized substantial progress across multiple fronts: large milestone-driven revenue, meaningful improvements in net loss, a stronger liquidity position, and clear clinical development milestones (SONATA enrollment completion mid-2026; Zynquista NDA resubmission midyear; LX9851 in Phase I; pilavapadin Phase III readiness). At the same time, several risks remain: the revenue uplift was largely one-time milestone-driven with limited organic sales, continued dependence on partners and conditional debt tranches, regulatory and enrollment uncertainties, and competitive dynamics in HCM. On balance, the highlights — particularly financial strengthening and late-stage program momentum — outweigh the lowlights, though execution risk into the second half of 2026 remains important.Positive Updates
Significant Revenue Increase Driven by Milestones
Total revenue of $21.1M in Q1 2026 versus $1.3M in Q1 2025, an increase of ~1,523%, driven primarily by two $10M milestone payments from Novo Nordisk; INPEFA net sales contributed $1.1M.
Negative Updates
Revenue Largely One-Time and Milestone-Driven
The Q1 2026 revenue surge (~1,523% YoY) was driven primarily by two $10M milestone payments from Novo Nordisk; underlying product net sales remain small (INPEFA net sales $1.1M), indicating limited organic commercial revenue traction to date.
Read all updates
Q1-2026 Updates
Positive
Negative
Significant Revenue Increase Driven by Milestones
Total revenue of $21.1M in Q1 2026 versus $1.3M in Q1 2025, an increase of ~1,523%, driven primarily by two $10M milestone payments from Novo Nordisk; INPEFA net sales contributed $1.1M.
Read all positive updates
Company Guidance
Lexicon reaffirmed near‑term clinical and financial milestones: Q1 2026 revenue was $21.1M (vs. $1.3M Q1 2025), including two $10M Novo milestones and $1.1M of INPEFA net sales; R&D expense was $12.8M (vs. $15.3M), SG&A $9.2M (vs. $11.6M), net loss $1.0M (<$0.01/share) vs. $25.3M ($0.07)/share, and non‑cash stock‑based comp was $3.1M. Cash, cash equivalents, short‑term investments and restricted cash totaled $199.7M as of 3/31/2026 (vs. $125.2M on 12/31/2025) and total debt was $49.7M (vs. $54.0M); operating expenses declined ~$4.8M QoQ and the company reaffirmed its 2026 operating expense outlook. Balance‑sheet actions include a $100M Hercules facility (initial $55M funded and used to repay Oxford, with conditional $20M and $25M tranches; 18‑month interest‑only period with two possible 6‑month extensions). Clinical guidance: SONATA‑HCM (~500 patients across ~130 sites in 20 countries) is expected to complete enrollment mid‑2026 with topline data in Q1 2027; Zynquista NDA resubmission is targeted mid‑2026 with possible approval in 2026; LX9851 entered Phase I in March (triggering a $10M milestone), and pilavapadin 10 mg was selected for Phase III while partnering is being pursued.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 | -17.44M | -41.38M | -184.29M | -169.76M | -100.03M | -86.66M |
| 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
1.93
Positive
1.72
Positive
1.52
Positive
Market Momentum
>-0.01
Positive
53.01
Neutral
68.28
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 2.00, below the 50-day MA of 1.93, and above the 200-day MA of 1.52, indicating a bullish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 53.01 is Neutral, neither overbought nor oversold. The STOCH value of 68.28 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 |
|---|---|---|---|---|---|---|---|
80 Outperform | $608.90M | 1.66 | 147.03% | ― | 47.61% | 854.73% | |
53 Neutral | $892.83M | -30.83 | -18.64% | ― | 123.12% | 86.10% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
51 Neutral | $403.24M | -1.41 | -232.50% | ― | -43.96% | -78.31% | |
47 Neutral | $278.83M | -1.27 | -35.74% | ― | 146.03% | -0.87% | |
46 Neutral | $467.51M | -3.17 | -49.88% | ― | -57.99% | -37.06% |
* Healthcare Sector Average
LXRX
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1.28
175.34%
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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.