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Lexicon Pharmaceuticals (LXRX)
NASDAQ:LXRX
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Lexicon Pharmaceuticals
(NASDAQ:LXRX)
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Rating:48Neutral
Price Target:
$1.50
▲(28.21% Upside)
Lexicon Pharmaceuticals' overall stock score reflects a challenging financial performance with strong revenue growth but significant profitability and cash flow issues. The technical analysis provides a slightly positive outlook, while the valuation highlights the typical risks associated with biotechnology firms in the development stage. The earnings call suggests a cautiously optimistic future, but the financial challenges weigh heavily on the overall score.
Positive Factors
Revenue Growth
The significant revenue growth indicates strong market demand and successful licensing agreements, enhancing long-term financial prospects.
R&D Advancements
Progress in R&D and strategic partnerships positions Lexicon for future product launches and potential milestone payments, supporting growth.
Operational Efficiency
Reduced operating expenses through strategic repositioning enhance profitability potential, improving long-term financial stability.
Negative Factors
Cash Flow Challenges
Persistent cash flow challenges may limit Lexicon's ability to fund ongoing R&D and operational activities, impacting sustainability.
Profitability Issues
Ongoing profitability issues suggest operational inefficiencies, which could hinder long-term financial health and investment capacity.
Decreased Cash Reserves
Reduced cash reserves may constrain Lexicon's ability to invest in growth opportunities and manage financial obligations effectively.
Lexicon Pharmaceuticals (LXRX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$425.18M
Dividend YieldN/A
Average Volume (3M)1.77M
Price to Earnings (P/E)―
Beta (1Y)2.14
Revenue Growth1255.21%
EPS Growth74.58%
CountryUS
Employees103
SectorHealthcare
Sector Strength45
IndustryBiotechnology
Share Statistics
EPS (TTM)-0.04
Shares Outstanding363,398,680
10 Day Avg. Volume1,803,281
30 Day Avg. Volume1,773,513
Financial Highlights & Ratios
PEG Ratio0.06
Price to Book (P/B)1.62
Price to Sales (P/S)7.60
P/FCF Ratio-1.31
Enterprise Value/Market Cap1.03
Enterprise Value/Revenue6.20
Enterprise Value/Gross Profit9.84
Enterprise Value/Ebitda-9.10
Forecast
1Y Price Target
$3.97Price Target Upside239.32% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
EPS Forecast (FY)-0.17
Revenue Forecast (FY)$44.87M
Lexicon Pharmaceuticals Business Overview & Revenue Model
Company DescriptionLexicon Pharmaceuticals, Inc. is a biopharmaceutical company focused on the development of innovative therapies for the treatment of human diseases, particularly in the areas of metabolic and rare diseases. The company is primarily engaged in the discovery and development of novel drug candidates, leveraging its expertise in genomics and drug development to create therapeutic solutions. Lexicon's core products include Zynquista (sotagliflozin), which is aimed at treating type 1 diabetes and heart failure, along with its pipeline of investigational therapies targeting various conditions.
How the Company Makes MoneyLexicon 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 Earnings Call Summary
Earnings Call Date:Nov 06, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Mar 18, 2026
Earnings Call Sentiment Neutral
The earnings call presented a mix of positive progress in revenues, R&D advancements, and strategic partnerships, while also highlighting challenges such as decreased cash reserves and the need for FDA feedback for key products. Overall, the positive aspects of the company's progress and strategic focus on future opportunities suggest a cautiously optimistic outlook.Q3-2025 Updates
Positive Updates
Significant Revenue Increase
Total revenue for Q3 2025 was $14.2 million, a substantial increase from $1.8 million in Q3 2024, primarily due to $13.2 million of licensing revenue from Novo Nordisk.
Progress in R&D and Strategic Partnerships
Completion of IND-enabling studies for LX9851 in obesity; ongoing discussions with potential partners for pilavapadin; partnership with Viatris expanding SOTA's reach in major markets.
Operational Efficiency and Cost Reduction
Operating expenses decreased by $39.1 million quarter-over-quarter due to strategic repositioning as an R&D-focused company.
Advancements in Clinical Trials
All 130-plus sites active in the Phase III SONATA study for sotagliflozin in HCM; successful progress in pilavapadin's Phase II trials indicating readiness for Phase III.
Positive Developments in Pain Management Legislation
Lexicon's advocacy efforts led to the introduction of the Relief of Chronic Pain Act in the U.S. Senate, supporting non-opioid therapies.
Negative Updates
Decreased Cash Reserves
Cash, short-term investments, and restricted cash decreased to $145 million as of Q3 2025 from $238 million at the end of 2024.
Reduced Marketing Efforts for INPEFA
Significantly reduced marketing efforts for INPEFA due to strategic repositioning, impacting its commercial performance.
Pending FDA Feedback for Zynquista
Awaiting FDA feedback for Zynquista in type 1 diabetes, with potential resubmission targeted for early 2026.
Company Guidance
During the Lexicon Pharmaceuticals third quarter 2025 financial results call, the company provided updates on its strategic goals and pipeline progress, emphasizing several key metrics. They highlighted the readiness of pilavapadin for Phase III registrational trials and the completion of IND-enabling studies for LX9851, targeting obesity, which might earn up to $30 million in near-term milestone payments. The ongoing Phase III SONATA trial for sotagliflozin in hypertrophic cardiomyopathy has all 130-plus sites active. Financially, Lexicon reported third-quarter revenue of $14.2 million, primarily driven by $13.2 million from licensing agreements. Their operating expenses dropped significantly, with total operating expenses projected between $105 million and $115 million for the year, supporting a strong financial position with $145 million in cash and short-term investments. These efforts underscore Lexicon's focus on advancing its R&D initiatives while exploring strategic partnerships to maximize the value of its drug programs.Lexicon Pharmaceuticals Financial Statement Overview
Summary
Lexicon Pharmaceuticals shows strong revenue growth but faces significant challenges in profitability and cash flow. The company has reduced leverage, but ongoing losses and negative cash flows highlight the need for improved operational efficiency.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.45
Neutral
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.40
Negative
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.35
Negative
| 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
Negative
1.17
Price Trends
1.38
Negative
1.29
Negative
0.99
Positive
Market Momentum
-0.06
Positive
35.07
Neutral
11.35
Positive
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 1.17 is below the 20-day moving average (MA) of 1.33, below the 50-day MA of 1.38, and above the 200-day MA of 0.99, indicating a neutral trend. The MACD of -0.06 indicates Positive momentum. The RSI at 35.07 is Neutral, neither overbought nor oversold. The STOCH value of 11.35 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LXRX.
Lexicon Pharmaceuticals Risk Analysis
Lexicon Pharmaceuticals disclosed 39 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 |
|---|---|---|---|---|---|---|---|
78 Outperform | $754.91M | 6.74 | 220.06% | ― | 79.13% | 2798.12% | |
54 Neutral | $738.59M | -4.18 | -76.88% | ― | 91.30% | 30.69% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
50 Neutral | $495.77M | -1.77 | -67.63% | ― | -91.16% | -112.24% | |
48 Neutral | $425.18M | -6.17 | -45.92% | ― | 1255.21% | 74.58% | |
47 Neutral | $476.14M | -1.89 | -34.63% | ― | -23.43% | -9.84% | |
39 Underperform | $477.76M | -3.01 | ― | ― | -80.09% | 60.14% |
* Healthcare Sector Average
LXRX
Lexicon Pharmaceuticals
1.17
0.34
40.96%
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Lexicon Pharmaceuticals Corporate Events
Private Placements and FinancingRegulatory Filings and Compliance
Lexicon Pharmaceuticals Files Prospectus for Stock Sale
Neutral
Nov 10, 2025
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.
Private Placements and FinancingRegulatory Filings and Compliance
Lexicon Pharmaceuticals Files Prospectus for Stock Sale
Neutral
Nov 6, 2025
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.
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.