Lexicon Pharmaceuticals (LXRX) AI Stock Analysis

• Market Cap: $421.54M
• Dividend Yield: N/A
• Average Volume (3M): 2.19M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.08
• 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: 3,600,372
• 30 Day Avg. Volume: 2,185,605
• 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: 1.02
• Enterprise Value/Revenue: 6.07
• Enterprise Value/Gross Profit: 9.62
• Enterprise Value/Ebitda: -8.90
• 1Y Price Target: $4.03
• Price Target Upside: 247.70% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 44 Neutral
• Price Target: $1.00 ▼(-13.79% Downside)

The score is primarily constrained by weak financial quality—ongoing losses and negative/declining cash flows—despite strong revenue growth. Technicals are also soft with the stock below key short- and mid-term moving averages. Offsetting these, management’s earnings call commentary and a new financing event support continued pipeline execution, but valuation remains challenged due to lack of profitability.

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.

Very high gross margins

Extremely high gross margins indicate low incremental costs to deliver product/licensing revenues. This structural margin profile supports leverage to operating leverage improvements: if R&D and SG&A are controlled, the business can move toward profitability faster once revenue scales or recurring licensing continues.

Late-stage pipeline progress

Active Phase III enrollment and Phase II-to-III readiness materially raise the probability of regulatory milestones and commercial opportunities. Late-stage progress enhances partner and acquirer interest, shortens time to value inflection, and makes future milestone/royalty streams more actionable.

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.

Negative operating and free cash flows

Persistent negative operating and free cash flows reflect structural cash burn that undermines balance sheet resilience. Continued outflows necessitate external funding or meaningful expense cuts, which can constrain R&D breadth and delay commercialization even with strong top-line growth.

Regulatory uncertainty for Zynquista

Pending FDA feedback creates a meaningful sequencing risk for a core product: regulatory delays can postpone market access and revenue scaling, reduce partner confidence, and extend reliance on financing. This uncertainty materially impacts medium-term commercialization planning.

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, with Zynquista being a significant source of income following its market approval. The company also generates revenue through collaborations and partnerships with other pharmaceutical firms, which may include upfront payments, milestone payments, and royalties from product sales. Additionally, Lexicon may receive funding from research grants and other sources to support its drug development efforts. The combination of product sales, strategic partnerships, and potential licensing agreements contributes to its overall revenue stream.

Lexicon Pharmaceuticals Financial Statement Overview

Summary

Very weak fundamentals overall: strong TTM revenue growth (87.2%) and high gross margin (98.9%) are outweighed by ongoing operating losses, negative profitability metrics, and negative operating/free cash flow with worsening free cash flow growth (-39.05%). Leverage is moderate (debt-to-equity 0.47) but returns remain negative.

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: Negative
• Last Price: 1.16
• 50DMA: Negative
• 100DMA: Negative
• 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 Negative. The current price of 1.16 is below the 20-day moving average (MA) of 1.35, below the 50-day MA of 1.32, and above the 200-day MA of 1.11, indicating a neutral trend. The MACD of 0.06 indicates Positive momentum. The RSI at 41.25 is Neutral, neither overbought nor oversold. The STOCH value of 28.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LXRX.

Lexicon Pharmaceuticals Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RIGL	80 Outperform	$632.76M	5.65	220.06%	―	79.13%	2798.12%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
PRTA	50 Neutral	$474.24M	-1.69	-67.63%	―	-91.16%	-112.24%
RGNX	47 Neutral	$564.95M	-3.20	-76.88%	―	91.30%	30.69%
BCYC	45 Neutral	$445.34M	-1.77	-34.63%	―	-23.43%	-9.84%
LXRX	44 Neutral	$421.54M	-6.12	-45.92%	―	1255.21%	74.58%

Lexicon Pharmaceuticals Corporate Events

Lexicon Pharmaceuticals Launches Equity Offering to Fund Pipeline

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 development of its drug candidates as well as working capital and general corporate purposes. The financing move comes as Lexicon advances its late-stage pipeline: the SONATA-HCM Phase 3 trial of sotagliflozin in hypertrophic cardiomyopathy is targeting 500 patients with completion of enrollment expected in mid-2026 and topline data in early 2027, pilavapadin has shown validated biological activity, clinically meaningful pain reduction and an acceptable safety profile in pooled Phase 2 data for diabetic peripheral neuropathic pain following FDA clearance to proceed to Phase 3, and the company is preparing for a potential 2026 resubmission of its ZYNQUISTA (sotagliflozin) NDA in type 1 diabetes, supported by safety data from the ongoing STENO1 study, collectively underscoring an intensifying push toward commercialization that is likely to be closely watched by investors and patients alike.

The most recent analyst rating on (LXRX) stock is a Sell with a $1.50 price target. To see the full list of analyst forecasts on Lexicon Pharmaceuticals stock, see the LXRX Stock Forecast page.

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 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.