Lexicon Pharmaceuticals (LXRX) AI Stock Analysis

Compare

1,630 Followers

Top Page

Lexicon Pharmaceuticals

(NASDAQ:LXRX)

Rating:58Neutral

Price Target:

$0.50

▼(-35.06%Downside)

Lexicon Pharmaceuticals receives a score of 58, primarily driven by positive developments in their earnings call, including strategic partnerships and reduced losses. However, ongoing financial challenges and an unattractive valuation weigh down the score. Technical indicators provide a moderate boost, but financial performance concerns are significant.

Positive Factors

Financial Position

Analysts are optimistic about a favorable Phase 2 PROGRESS trial readout, which could lead to a registrational trial and potential approval for DPNP treatment.

Product Efficacy

LX9211 has shown significantly greater reductions in average daily pain score and other pain-related symptoms compared to placebo in clinical trials.

Strategic Partnerships

The exclusive licensing agreement with Novo Nordisk for LX9851 in obesity is potentially worth up to $1 billion.

Negative Factors

Clinical Risks

The path forward for pilavapadin is viewed with caution due to modest efficacy versus placebo in the Ph.2b PROGRESS study.

Execution Risks

There are remaining execution risks across LXRX's clinical pipeline and anticipated cash burn.

Lexicon Pharmaceuticals (LXRX) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$260.40M

Dividend YieldN/A

Average Volume (3M)4.20M

Price to Earnings (P/E)―

Beta (1Y)2.32

Revenue Growth1250.63%

EPS Growth37.24%

CountryUS

Employees103

SectorHealthcare

Sector Strength41

IndustryBiotechnology

Share Statistics

EPS (TTM)-0.07

Shares Outstanding363,178,000

10 Day Avg. Volume3,251,211

30 Day Avg. Volume4,199,254

Financial Highlights & Ratios

PEG Ratio-0.05

Price to Book (P/B)1.58

Price to Sales (P/S)0.00

P/FCF Ratio-1.15

Enterprise Value/Market Cap0.67

Enterprise Value/Revenue2.44

Enterprise Value/Gross Profit5.67

Enterprise Value/Ebitda-0.24

Forecast

1Y Price Target

$3.67

Price Target Upside376.62% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering3

Lexicon Pharmaceuticals Business Overview & Revenue Model

Company DescriptionLexicon 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 MoneyLexicon Pharmaceuticals makes money through the development and commercialization of pharmaceutical products. The company generates revenue by licensing its drug candidates to larger pharmaceutical companies, which may handle further development, manufacturing, and marketing. Additionally, Lexicon earns money through the sale of its approved drugs, such as those for the treatment of diabetes and other conditions. Revenue streams also include milestone payments and royalties from partnerships and collaborations with other biotech and pharmaceutical companies. Significant partnerships with entities that have the capability to advance clinical trials and market drugs on a larger scale play a crucial role in Lexicon's earnings strategy.

Lexicon Pharmaceuticals Earnings Call Summary

Earnings Call Date:May 13, 2025

(Q1-2025)

% Change Since: 22.22%|

Next Earnings Date:Jul 31, 2025

Earnings Call Sentiment Positive

The call presented a generally positive outlook for Lexicon Pharmaceuticals, with significant achievements such as the Novo Nordisk partnership and successful Phase 2B results for pilavapadin. Financial restructuring has been effective, although there are ongoing costs associated with R&D. The sentiment is overall positive with strong strategic positioning and reduced losses.

Q1-2025 Updates

Positive Updates

Exclusive License Agreement with Novo Nordisk

Lexicon announced an exclusive license agreement with Novo Nordisk for LX9851, potentially worth up to $1 billion, including an upfront payment of $45 million received in April 2025.

Phase 2B Study Success for Pilavapadin

Lexicon identified a well-tolerated dose for pilavapadin in their Phase 2B study, demonstrating clear evidence of effect for Phase 3 studies.

Improved Financial Position

Lexicon improved their balance sheet by reducing operating costs, using the upfront payment from Novo Nordisk to reduce debt, and ending the quarter with $194.8 million in cash and short-term investments.

Strong Progress with Sotagliflozin

Lexicon remains on track with enrollment in the SONATA HCM study of sotagliflozin, with confidence in its potential for both obstructive and non-obstructive HCM.

Successful Restructuring and Cost Reduction

Selling, general and administrative expenses decreased significantly to $11.6 million from $32.1 million in Q1 2024 due to strategic repositioning.

Negative Updates

Increased R&D Expenses

Research and development expenses increased to $15.3 million from $14.4 million in the same period in 2024, reflecting late-stage development program costs.

Continued Net Loss

Lexicon reported a net loss of $25.3 million for Q1 2025, compared to a net loss of $48.4 million in the same period in 2024.

Company Guidance

During the Lexicon Pharmaceuticals first quarter 2025 financial results conference call, the company provided several forward-looking statements and updates on their drug programs. Key metrics included a license agreement with Novo Nordisk for LX9851, with Lexicon eligible for up to $1 billion in milestone payments and $75 million in upfront and near-term payments, of which $45 million was already received. The company also reported a net loss of $25.3 million for the quarter, down from $48.4 million the previous year, and ended the quarter with $194.8 million in cash and short-term investments. Operating expenses for 2025 are expected to be between $135 million and $145 million. Progress was highlighted in their pilavapadin and sotagliflozin programs, with a focus on advancing Phase 3 studies and ongoing strategic partnerships to expand their global footprint.

Lexicon Pharmaceuticals Financial Statement Overview

Summary

Lexicon Pharmaceuticals faces ongoing profitability challenges with limited revenue growth and negative profit margins. The balance sheet shows manageable debt levels but weakened equity position. Cash flow issues are evident with negative operational and free cash flows, indicating liquidity concerns.

Income Statement

Negative

Lexicon Pharmaceuticals shows limited revenue growth with a TTM increase of only 0.43% compared to the previous annual period. Gross profit margins remain strong at 98.03% for TTM, but the company struggles with negative EBIT and net profit margins due to high operational expenses, reflecting ongoing losses and profitability challenges.

Balance Sheet

Neutral

The company's balance sheet reveals a moderate debt-to-equity ratio of 0.34, indicating manageable debt levels against equity. However, stockholders' equity has decreased over time, and the equity ratio stands at 41.33%, showing a decline in assets financed by equity. The firm maintains a reasonable cash position, but there are concerns regarding the negative equity from previous years.

Cash Flow

Neutral

The cash flow statement highlights a negative free cash flow growth rate, with free cash flows worsening by 6.32% in TTM. Operating cash flow remains negative, leading to a challenging cash position. The free cash flow to net income ratio is negative due to ongoing losses, indicating potential cash flow issues.

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
31.21M	31.08M	1.20M	139.00K	298.00K	24.00M
	Gross Profit
30.60M	30.46M	1.12M	-288.00K	-54.75M	22.07M
	EBIT
-177.46M	-197.12M	-171.75M	-100.76M	-87.09M	-178.78M
	EBITDA
-166.66M	-184.29M	-163.46M	-98.74M	-86.66M	-41.10M
	Net Income Common Stockholders
-177.30M	-200.40M	-177.12M	-103.13M	-88.27M	-70.18M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
194.84M	237.96M	170.03M	138.36M	86.74M	152.28M
	Total Assets
297.67M	298.42M	229.43M	194.30M	136.91M	203.79M
	Total Debt
42.06M	108.40M	106.06M	55.29M	2.28M	12.81M
	Net Debt
-20.83M	41.74M	83.60M	8.95M	-61.79M	-113.45M
	Total Liabilities
174.64M	152.47M	136.32M	77.17M	23.31M	47.42M
	Stockholders Equity
123.03M	145.95M	93.11M	-1.59B	-1.49B	156.37M
Cash Flow		Free Cash Flow
-168.46M	-179.81M	-162.37M	-90.18M	-88.24M	-143.06M
	Operating Cash Flow
-167.43M	-178.78M	-161.90M	-88.85M	-87.02M	-142.97M
	Investing Cash Flow
135.43M	-15.38M	-49.94M	-71.08M	2.11M	380.76M
	Financing Cash Flow
-1.61M	238.35M	187.96M	142.21M	22.71M	-147.64M

Lexicon Pharmaceuticals Technical Analysis

Technical Analysis Sentiment

Positive

Last Price0.77

Price Trends

50DMA

0.60

Positive

100DMA

0.61

Positive

200DMA

0.96

Negative

Market Momentum

MACD

0.03

Negative

RSI

65.96

Neutral

STOCH

70.11

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 0.77 is above the 20-day moving average (MA) of 0.64, above the 50-day MA of 0.60, and below the 200-day MA of 0.96, indicating a neutral trend. The MACD of 0.03 indicates Negative momentum. The RSI at 65.96 is Neutral, neither overbought nor oversold. The STOCH value of 70.11 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 3 New Risks

If we are unable to meet Nasdaq continued listing requirements, including minimum trading price, Nasdaq may take action to delist our common stock. Q4, 2024

We depend heavily on our ability to successfully complete the ongoing research and development of our drug programs. If we fail to successfully complete and gain positive results from such research and development efforts, our business will suffer and our stock price will likely decline. Q4, 2024

Changes in government trade policies could disrupt our supply chain or increase the costs of our clinical and commercial supply, negatively impacting our ability to conduct our clinical and commercial operations, price our commercial product competitively and conduct clinical development in a cost effective manner. Q4, 2024

Lexicon Pharmaceuticals Peers Comparison

Overall Rating

UnderperformOutperform

Sector (54)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LXRX	58 Neutral	$260.40M	―	-86.09%	―	1250.63%	37.24%
PLX	57 Neutral	$121.00M	37.62	10.42%	―	0.18%	-55.15%
FHTX	54 Neutral	$229.65M	―	322.49%	―	-30.66%	36.48%
Sector *	54 Neutral	$5.24B	3.27	-45.39%	2.80%	16.77%	-0.07%
DBVT	50 Neutral	$230.41M	―	-198.47%	―	―	-38.74%
TERN	45 Neutral	$309.18M	―	-32.12%	―	―	10.98%
GOSS	35 Underperform	$286.40M	―	-500.57%	―	―	81.94%

* Healthcare Sector Average

Performance Comparison

LXRX

Lexicon Pharmaceuticals

0.77

-1.13

-59.47%

PLX

Protalix

1.58

0.39

32.77%

DBVT

DBV Technologies SA - American

9.13

3.93

75.58%

GOSS

Gossamer Bio

1.33

0.81

155.77%

FHTX

Foghorn Therapeutics

4.46

-1.36

-23.37%

TERN

Terns Pharmaceuticals

3.70

-3.29

-47.07%

Lexicon Pharmaceuticals Corporate Events

Executive/Board ChangesShareholder MeetingsStock Split

Lexicon Pharmaceuticals Holds Annual Stockholder Meeting

Neutral

Jun 3, 2025

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.

The most recent analyst rating on (LXRX) stock is a Buy with a $10.00 price target. To see the full list of analyst forecasts on Lexicon Pharmaceuticals stock, see the LXRX Stock Forecast page.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.