Lexicon Pharmaceuticals (LXRX) AI Stock Analysis

• Market Cap: $446.71M
• Dividend Yield: N/A
• Average Volume (3M): 4.67M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.49
• Revenue Growth: 1250.63%
• EPS Growth: 37.24%
• Country: US
• Employees: 103
• Sector: Healthcare
• Sector Strength: 40
• Industry: Biotechnology
• EPS (TTM): -0.07
• Shares Outstanding: 363,178,000
• 10 Day Avg. Volume: 4,394,220
• 30 Day Avg. Volume: 4,672,687
• PEG Ratio: -0.12
• Price to Book (P/B): 3.41
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -2.50
• Enterprise Value/Market Cap: 0.89
• Enterprise Value/Revenue: 5.58
• Enterprise Value/Gross Profit: 12.97
• Enterprise Value/Ebitda: -0.54
• 1Y Price Target: $3.67
• Price Target Upside: 198.37% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 58 Neutral
• Price Target: $1.50 ▲(21.95%Upside)

The overall stock score of 58 reflects a mixed outlook for Lexicon Pharmaceuticals. The most significant strengths are the positive momentum and strategic partnerships indicated in the earnings call. However, financial performance remains a concern due to ongoing losses, negative cash flows, and poor valuation metrics.

Positive Factors

Financial Position

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

Pipeline Advancement

Lexicon is well-positioned to successfully advance its diverse pipeline of innovative small-molecule inhibitors.

Regulatory Approval

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

Negative Factors

Clinical Efficacy Concerns

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. is a biopharmaceutical company focused on the development of breakthrough treatments for human diseases. The company operates primarily in the biotechnology and pharmaceuticals sectors, with a mission to innovate in the field of drug discovery and development. Lexicon's core products include therapies for diabetes, carcinoid syndrome, and other metabolic and rare diseases, leveraging their proprietary genetics-based approach to identify and develop new drug candidates.

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 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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	31.08M	1.20M	139.00K	298.00K	24.00M
Gross Profit	30.46M	1.12M	-288.00K	-54.75M	22.07M
EBITDA	-184.29M	-163.46M	-98.74M	-86.66M	-41.10M
Net Income	-200.40M	-177.12M	-103.13M	-88.27M	-70.18M
Balance Sheet
Total Assets	298.42M	229.43M	194.30M	136.91M	203.79M
Cash, Cash Equivalents and Short-Term Investments	237.96M	170.03M	138.36M	86.74M	152.28M
Total Debt	108.40M	106.06M	55.29M	2.28M	12.81M
Total Liabilities	152.47M	136.32M	77.17M	23.31M	47.42M
Stockholders Equity	145.95M	93.11M	117.12M	-1.49B	156.37M
Cash Flow
Free Cash Flow	-179.81M	-162.37M	-90.18M	-88.24M	-143.06M
Operating Cash Flow	-178.78M	-161.90M	-88.85M	-87.02M	-142.97M
Investing Cash Flow	-15.38M	-49.94M	-71.08M	2.11M	380.76M
Financing Cash Flow	238.35M	187.96M	142.21M	22.71M	-147.64M

Lexicon Pharmaceuticals Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.23
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 1.23 is above the 20-day moving average (MA) of 0.99, above the 50-day MA of 0.79, and above the 200-day MA of 0.86, indicating a bullish trend. The MACD of 0.14 indicates Negative momentum. The RSI at 65.60 is Neutral, neither overbought nor oversold. The STOCH value of 81.07 is Negative, 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
PLX	62 Neutral	$115.43M	34.52	10.42%	―	0.18%	-55.15%
LXRX	58 Neutral	$446.71M	―	-86.09%	―	1250.63%	37.24%
FHTX	57 Neutral	$341.69M	―	322.49%	―	-30.66%	36.48%
DBVT	54 Neutral	$271.24M	―	-198.47%	―	―	-38.86%
Sector *	52 Neutral	$7.35B	-0.07	-63.71%	2.81%	16.17%	0.03%
TERN	45 Neutral	$492.59M	―	-32.12%	―	―	10.98%
GOSS	35 Underperform	$386.41M	―	-500.57%	―	―	81.94%

Lexicon Pharmaceuticals Corporate Events

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.