Lexicon Pharmaceuticals (LXRX)
NASDAQ:LXRX
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Lexicon Pharmaceuticals
(NASDAQ:LXRX)
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Rating:60Neutral
Price Target:
$1.50
▼(-9.09% Downside)
Action:ReiteratedDate:03/06/26
The score is driven by improving balance-sheet health and a constructive technical uptrend, supported by an earnings call that outlined multiple pipeline/regulatory catalysts and tighter cost control. Offsetting this is a still-unprofitable model with significant cash burn and a negative P/E, which keeps overall risk elevated.
Positive Factors
Licensing-driven revenue growth
Material licensing receipts demonstrate the firm's ability to monetize assets and generate near-term non-dilutive cash. Durable partner revenue can underwrite R&D and reduce sole-commercialization risk, improving the company's capacity to fund late-stage programs and strategic development.
Negative Factors
Declining cash reserves
A large decline in cash balances within a year tightens runway for multiple late-stage trials and development activities. This reduces flexibility to sustain parallel programs and increases the likelihood the firm must access capital markets or partners, pressuring strategic optionality.
Read all positive and negative factors
Positive Factors
Negative Factors
Licensing-driven revenue growth
Material licensing receipts demonstrate the firm's ability to monetize assets and generate near-term non-dilutive cash. Durable partner revenue can underwrite R&D and reduce sole-commercialization risk, improving the company's capacity to fund late-stage programs and strategic development.
Read all positive factors
Lexicon Pharmaceuticals (LXRX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$699.07M
Dividend YieldN/A
Average Volume (3M)2.53M
Price to Earnings (P/E)―
Beta (1Y)2.07
Revenue Growth1255.21%
EPS Growth74.58%
CountryUS
Employees103
SectorHealthcare
Sector Strength45
IndustryBiotechnology
Share Statistics
EPS (TTM)-0.04
Shares Outstanding423,680,600
10 Day Avg. Volume2,545,627
30 Day Avg. Volume2,531,620
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/Revenue14.60
Enterprise Value/Gross Profit14.77
Enterprise Value/Ebitda-17.04
Forecast
1Y Price Target
$3.83Price Target Upside132.12% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)-0.18
Revenue Forecast (FY)$34.04M
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 Pharmaceuticals generates revenue primarily through the commercialization of its pharmaceutical products, with Zynquista being a significant source of income following its market approval. The company also generates revenue through collabo...
Lexicon Pharmaceuticals Earnings Call Summary
Earnings Call Date:Mar 05, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 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
28
Negative
Balance Sheet
62
Positive
Cash Flow
24
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 49.80M | 31.08M | 1.20M | 139.00K | 298.00K |
| Gross Profit | 49.53M | 30.46M | -57.77M | -52.38M | -54.75M |
| EBITDA | -48.29M | -184.29M | -169.76M | -100.03M | -86.80M |
| Net Income | -50.34M | -200.40M | -177.12M | -101.94M | -87.76M |
Balance Sheet | |||||
| Total Assets | 184.99M | 298.42M | 229.43M | 194.30M | 136.91M |
| Cash, Cash Equivalents and Short-Term Investments | 96.23M | 237.96M | 170.03M | 138.36M | 86.74M |
| Total Debt | 62.24M | 108.40M | 106.06M | 55.29M | 2.28M |
| Total Liabilities | 77.45M | 152.47M | 136.32M | 77.17M | 23.31M |
| Stockholders Equity | 107.54M | 145.95M | 93.11M | 117.12M | 113.59M |
Cash Flow | |||||
| Free Cash Flow | -67.85M | -179.81M | -162.37M | -90.18M | -88.24M |
| Operating Cash Flow | -67.85M | -178.78M | -161.90M | -88.85M | -87.02M |
| Investing Cash Flow | 113.02M | -15.38M | -49.94M | -71.08M | 2.11M |
| Financing Cash Flow | -48.50M | 238.35M | 187.96M | 142.21M | 22.71M |
Lexicon Pharmaceuticals Technical Analysis
Positive
1.65
Price Trends
1.50
Positive
1.40
Positive
1.28
Positive
Market Momentum
0.05
Positive
54.87
Neutral
52.68
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 1.65 is above the 20-day moving average (MA) of 1.65, above the 50-day MA of 1.50, and above the 200-day MA of 1.28, indicating a bullish trend. The MACD of 0.05 indicates Positive momentum. The RSI at 54.87 is Neutral, neither overbought nor oversold. The STOCH value of 52.68 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 |
|---|---|---|---|---|---|---|---|
73 Outperform | $476.79M | 2.10 | 240.83% | ― | 79.13% | 2798.12% | |
60 Neutral | $699.07M | ― | -41.94% | ― | 1255.21% | 74.58% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
51 Neutral | $498.49M | -2.11 | -73.00% | ― | -91.16% | -112.24% | |
46 Neutral | $298.98M | ― | -33.20% | ― | -23.43% | -9.84% | |
45 Neutral | $400.52M | -3.83 | -103.12% | ― | 91.30% | 30.69% |
* Healthcare Sector Average
LXRX
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1.65
1.19
258.70%
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Lexicon Pharmaceuticals Corporate Events
Business Operations and StrategyPrivate Placements and FinancingRegulatory Filings and Compliance
Lexicon Pharmaceuticals Bolsters Capital Through Equity Financing
Positive
Feb 2, 2026
On January 29, 2026, Lexicon Pharmaceuticals entered into an underwriting agreement for a public offering of 32 million common shares at $1.30 per share and, on February 2, 2026, closed a concurrent private placement with affiliates of its largest...
Business Operations and StrategyPrivate Placements and Financing
Lexicon Pharmaceuticals Launches Equity Offering to Fund Pipeline
Positive
Jan 29, 2026
On January 29, 2026, Lexicon Pharmaceuticals launched an underwritten public offering of common stock, alongside a concurrent private placement to an affiliate of major shareholder Invus, L.P., to raise capital primarily for continued research and...
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.