Lexicon Pharmaceuticals (LXRX) AI Stock Analysis

• Market Cap: $298.13M
• Dividend Yield: N/A
• Average Volume (3M): 4.46M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.43
• Revenue Growth: 1250.63%
• EPS Growth: 37.24%
• Country: US
• Employees: 103
• Sector: Healthcare
• Sector Strength: 42
• Industry: Biotechnology
• EPS (TTM): -0.07
• Shares Outstanding: 363,178,000
• 10 Day Avg. Volume: 5,991,354
• 30 Day Avg. Volume: 4,458,350
• PEG Ratio: -1.87
• Price to Book (P/B): -0.20
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -3.51
• Enterprise Value/Market Cap: 1.09
• Enterprise Value/Revenue: 4.57
• Enterprise Value/Gross Profit: 10.64
• Enterprise Value/Ebitda: -0.44
• 1Y Price Target: $3.67
• Price Target Upside: 347.56% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 57 Neutral
• Price Target: $1.00 ▲(21.95%Upside)

Lexicon Pharmaceuticals' stock score is primarily influenced by its earnings call's positive outlook and strategic partnerships, which offer a favorable future perspective. However, financial performance and valuation remain concerns due to ongoing losses and profitability challenges. Technical analysis supports a short-term positive trend, but overall, the financial health needs improvement for a better investment appeal.

Positive Factors

Product Approval and Efficacy

Results from the inTandem studies led to the approval of ZYNQUISTA (sotagliflozin) for the management of T1D by the EMA, validating its efficacy for glycemic control and hypoglycemia prevention.

R&D and Financial Position

Operating expenses decreased notably thanks to recent restructuring and prioritization efforts, reflecting a shift to an R&D-focused organization.

Strategic Partnerships

The exclusive licensing agreement with Novo Nordisk for LX9851 in obesity is potentially worth up to $1 billion, validating Lexicon's obesity platform and providing capital flexibility.

Negative Factors

Clinical Trial Caution

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 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 through the commercialization of its pharmaceutical products and through strategic partnerships with other companies in the biotechnology and pharmaceutical industries. Revenue streams primarily consist of sales of its marketed products, such as Xermelo, a treatment for carcinoid syndrome diarrhea, as well as collaborative agreements that provide research funding, milestone payments, and royalties. These partnerships often involve licensing Lexicon's proprietary technologies or compounds to larger pharmaceutical companies, which can accelerate the development and commercialization of new therapies. Additionally, Lexicon may receive government grants or other funding to support its research and development efforts.

Lexicon Pharmaceuticals Financial Statement Overview

Summary

Lexicon Pharmaceuticals shows limited revenue growth and ongoing profitability challenges, reflected in negative EBIT and net profit margins. Despite manageable debt levels, the equity position has weakened, and cash flow difficulties persist, indicating potential liquidity concerns.

Income Statement

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
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
EBITDA	-166.66M	-184.29M	-163.46M	-98.74M	-86.66M	-41.10M
Net Income	-177.30M	-200.40M	-177.12M	-103.13M	-88.27M	-70.18M
Balance Sheet
Total Assets	297.67M	298.42M	229.43M	194.30M	136.91M	203.79M
Cash, Cash Equivalents and Short-Term Investments	194.84M	237.96M	170.03M	138.36M	86.74M	152.28M
Total Debt	42.06M	108.40M	106.06M	55.29M	2.28M	12.81M
Total Liabilities	174.64M	152.47M	136.32M	77.17M	23.31M	47.42M
Stockholders Equity	123.03M	145.95M	93.11M	117.12M	-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 Price: 0.82
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• 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 0.82 is above the 20-day moving average (MA) of 0.73, above the 50-day MA of 0.68, and below the 200-day MA of 0.90, indicating a neutral trend. The MACD of 0.05 indicates Negative momentum. The RSI at 59.39 is Neutral, neither overbought nor oversold. The STOCH value of 79.31 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
LXRX	57 Neutral	$298.13M	―	-86.09%	―	1250.63%	37.24%
PLX	56 Neutral	$122.59M	36.67	10.42%	―	0.18%	-55.15%
Sector *	51 Neutral	$7.41B	0.36	-61.88%	2.33%	16.99%	1.69%
DBVT	51 Neutral	$247.02M	―	-198.47%	―	―	-38.74%
FHTX	49 Neutral	$269.79M	―	322.49%	―	-30.66%	36.48%
TERN	45 Neutral	$334.50M	―	-32.12%	―	―	10.98%
GOSS	35 Underperform	$284.13M	―	-500.57%	―	―	81.94%

Lexicon Pharmaceuticals Corporate Events

Lexicon Pharmaceuticals Holds Annual Stockholder Meeting

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.