Lexicon Pharmaceuticals (LXRX) AI Stock Analysis

• Market Cap: $392.47M
• Dividend Yield: N/A
• Average Volume (3M): 4.02M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.43
• Revenue Growth: 1504.83%
• EPS Growth: 56.81%
• Country: US
• Employees: 103
• Sector: Healthcare
• Sector Strength: 38
• Industry: Biotechnology
• EPS (TTM): 0.01
• Shares Outstanding: 363,398,860
• 10 Day Avg. Volume: 2,769,941
• 30 Day Avg. Volume: 4,015,858
• 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: 0.68
• Enterprise Value/Revenue: 4.56
• Enterprise Value/Gross Profit: 4.59
• Enterprise Value/Ebitda: -2.38
• 1Y Price Target: $2.46
• Price Target Upside: 127.78% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

• Rating: 55 Neutral
• Price Target: $1.00 ▼(-7.41% Downside)

Lexicon Pharmaceuticals' stock score is primarily influenced by ongoing financial challenges, including negative margins and cash flow issues. However, recent earnings call highlights, such as significant revenue growth and strategic cost reductions, provide a positive outlook. Technical indicators show moderate strength, while valuation concerns persist due to negative earnings. The company's regained Nasdaq compliance is a positive corporate event, contributing to a slightly improved market perception.

Positive Factors

Drug Development

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

Financial Performance

The exclusive licensing agreement with Novo Nordisk significantly strengthens Lexicon's financial position, providing a cushion that should allow Lexicon to focus resources on pilavapadin's Ph.3 program in DPNP and the Ph.3 SONATA trial for sotagliflozin in Hypertrophic Cardiomyopathy (HCM).

Regulatory and Approvals

Results from the inTandem studies led to the approval of ZYNQUISTA (sotagliflozin) for the management of T1D by the EMA.

Negative Factors

Clinical Trials

The Ph.2b PROGRESS study data for pilavapadin in Diabetic Peripheral Neuropathic Pain (DPNP) shows modest efficacy versus placebo.

Operating Expenses

Lexicon has notably lowered its FY2025 operating expense guidance, primarily driven by a revised R&D expense projection, largely due to the transfer of costs to Novo Nordisk under the licensing agreement.

Lexicon Pharmaceuticals Business Overview & Revenue Model

Company Description

Lexicon Pharmaceuticals (LXRX) is a biopharmaceutical company focused on the discovery, development, and commercialization of novel therapeutics for the treatment of human disease. The company primarily operates in the pharmaceutical sector, specializing in drug development for conditions such as metabolic and neurodegenerative diseases. Lexicon's core products include LX9211, a treatment for diabetic neuropathic pain, and LX2761, aimed at addressing type 1 diabetes, among others.

How the Company Makes Money

Lexicon Pharmaceuticals generates revenue primarily through the commercialization of its pharmaceutical products and potential milestone payments from partnerships with larger pharmaceutical companies. The company may receive royalties on product sales in addition to upfront payments for licensing agreements. Lexicon's strategic collaborations with industry partners allow it to leverage resources for drug development, which can lead to shared revenues upon successful product launches. Furthermore, the company may also benefit from grants and research funding aimed at supporting innovative therapeutic research.

Lexicon Pharmaceuticals Financial Statement Overview

Summary

Lexicon Pharmaceuticals faces ongoing profitability challenges, with limited revenue growth and negative margins. While the balance sheet shows manageable debt levels, the equity position has weakened. Cash flow difficulties persist with negative operational and free cash flows, 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	58.43M	31.08M	1.20M	139.00K	298.00K	24.00M
Gross Profit	57.95M	30.46M	1.12M	-288.00K	-54.75M	22.07M
EBITDA	-111.85M	-184.29M	-163.46M	-98.74M	-86.66M	-41.10M
Net Income	-120.62M	-200.40M	-177.12M	-103.13M	-88.27M	-70.18M
Balance Sheet
Total Assets	225.58M	298.42M	229.43M	194.30M	136.91M	203.79M
Cash, Cash Equivalents and Short-Term Investments	139.01M	237.96M	170.03M	138.36M	86.74M	152.28M
Total Debt	0.00	108.40M	106.06M	55.29M	2.28M	12.81M
Total Liabilities	96.14M	152.47M	136.32M	77.17M	23.31M	47.42M
Stockholders Equity	129.44M	145.95M	93.11M	117.12M	-1.49B	156.37M
Cash Flow
Free Cash Flow	-102.68M	-179.81M	-162.37M	-90.18M	-88.24M	-143.06M
Operating Cash Flow	-101.89M	-178.78M	-161.90M	-88.85M	-87.02M	-142.97M
Investing Cash Flow	163.23M	-15.38M	-49.94M	-71.08M	2.11M	380.76M
Financing Cash Flow	-46.59M	238.35M	187.96M	142.21M	22.71M	-147.64M

Lexicon Pharmaceuticals Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1.08
• 50DMA: Positive
• 100DMA: Positive
• 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 Neutral. The current price of 1.08 is below the 20-day moving average (MA) of 1.15, above the 50-day MA of 0.94, and above the 200-day MA of 0.81, indicating a neutral trend. The MACD of 0.04 indicates Positive momentum. The RSI at 51.45 is Neutral, neither overbought nor oversold. The STOCH value of 45.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for LXRX.

Lexicon Pharmaceuticals Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	65 Neutral	¥339.25B	10.41	-0.16%	2.41%	10.21%	-11.90%
PLX	62 Neutral	$122.59M	36.67	10.42%	―	0.18%	-55.15%
LXRX	55 Neutral	$392.47M	―	-65.30%	―	1504.83%	56.81%
FHTX	51 Neutral	$258.91M	―	322.49%	―	-31.30%	36.26%
DBVT	47 Neutral	$276.78M	―	-148.73%	―	―	-22.49%
TERN	45 Neutral	$532.07M	―	-35.02%	―	―	20.37%
GOSS	35 Underperform	$400.19M	―	-783.37%	―	-58.02%	-57.23%

Lexicon Pharmaceuticals Corporate Events

Lexicon Pharmaceuticals Regains Nasdaq Compliance

On July 23, 2025, Lexicon Pharmaceuticals, a company listed on The NASDAQ Stock Market, received confirmation from Nasdaq that it has regained compliance with the minimum $1 bid price requirement for its common stock, resolving a previous issue. This development marks a positive step for Lexicon Pharmaceuticals, potentially stabilizing its market position and reassuring stakeholders about the company’s adherence to listing standards.

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.

Lexicon Pharmaceuticals Granted Nasdaq Compliance Extension

On July 3, 2025, Lexicon Pharmaceuticals received a letter from Nasdaq indicating eligibility for an additional 180-day period to regain compliance with the minimum $1 bid price requirement for its common stock. The company applied to transfer its stock from the Nasdaq Global Select Market to the Nasdaq Capital Market, which was approved, and the transfer will occur on July 7, 2025. This move allows Lexicon Pharmaceuticals more time to meet the bid price requirement, with plans to potentially implement a reverse stock split if necessary.

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.

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.