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Lexicon Pharmaceuticals (LXRX)
NASDAQ:LXRX
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Lexicon Pharmaceuticals
(NASDAQ:LXRX)
49Neutral
Positive Factors
Financial Position
The deal with Novo for LX9851 strengthens Lexicon's financial position, helps validate its obesity platform, and should allow Lexicon to focus resources on pilavapadin's Ph. 3 program in DPNP.
Revenue Stability
Lexicon reported stable revenue from Inpefa (sotagliflozin) sales, indicating steady performance.
Negative Factors
Clinical Program Risks
The path forward for pilavapadin is viewed with caution due to modest efficacy versus placebo in the Ph.2b PROGRESS study.
Investor Pressure
Lexicon may continue to face investor pressure with their recent Ph.2b PROGRESS data for pilavapadin in diabetic peripheral neuropathic pain, which was viewed as mixed with only the 10mg dose arm showing meaningful separation vs placebo.
Lexicon Pharmaceuticals (LXRX) vs. S&P 500 (SPY)
Market Cap
$194.37M
Dividend YieldN/A
Average Volume (3M)6.61M
Price to Earnings (P/E)―
Beta (1Y)2.44
Revenue Growth1250.63%
EPS Growth37.24%
CountryUS
Employees103
SectorHealthcare
Sector Strength41
IndustryBiotechnology
Share Statistics
EPS (TTM)-0.07
Shares Outstanding363,178,000
10 Day Avg. Volume4,304,973
30 Day Avg. Volume6,605,105
Financial Highlights & Ratios
PEG Ratio-0.05
Price to Book (P/B)1.58
Price to Sales (P/S)0.00
P/FCF Ratio-1.15
Enterprise Value/Market Cap0.89
Enterprise Value/Revenue2.44
Enterprise Value/Gross Profit5.67
Enterprise Value/Ebitda-0.24
Forecast
1Y Price Target
$3.67Price Target Upside579.63% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
Lexicon Pharmaceuticals Business Overview & Revenue Model
Company DescriptionLexicon 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 MoneyLexicon Pharmaceuticals makes money through the development and commercialization of pharmaceutical products. The company generates revenue by licensing its drug candidates to larger pharmaceutical companies, which may handle further development, manufacturing, and marketing. Additionally, Lexicon earns money through the sale of its approved drugs, such as those for the treatment of diabetes and other conditions. Revenue streams also include milestone payments and royalties from partnerships and collaborations with other biotech and pharmaceutical companies. Significant partnerships with entities that have the capability to advance clinical trials and market drugs on a larger scale play a crucial role in Lexicon's earnings strategy.
Lexicon Pharmaceuticals Financial Statement Overview
Summary
Lexicon Pharmaceuticals faces ongoing profitability challenges with limited revenue growth and negative profit margins. The balance sheet shows manageable debt levels but weakened equity position. Cash flow issues are evident with negative operational and free cash flows, indicating 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.40
Negative
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.50
Neutral
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.45
Neutral
| 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 | EBIT |
| -177.46M | -197.12M | -171.75M | -100.76M | -87.09M | -178.78M | EBITDA |
| -166.66M | -184.29M | -163.46M | -98.74M | -86.66M | -41.10M | Net Income Common Stockholders |
| -177.30M | -200.40M | -177.12M | -103.13M | -88.27M | -70.18M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 194.84M | 237.96M | 170.03M | 138.36M | 86.74M | 152.28M | Total Assets |
| 297.67M | 298.42M | 229.43M | 194.30M | 136.91M | 203.79M | Total Debt |
| 42.06M | 108.40M | 106.06M | 55.29M | 2.28M | 12.81M | Net Debt |
| -20.83M | 41.74M | 83.60M | 8.95M | -61.79M | -113.45M | Total Liabilities |
| 174.64M | 152.47M | 136.32M | 77.17M | 23.31M | 47.42M | Stockholders Equity |
| 123.03M | 145.95M | 93.11M | -1.59B | -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
Negative
0.54
Price Trends
0.52
Positive
0.63
Negative
1.04
Negative
Market Momentum
<0.01
Positive
42.09
Neutral
6.83
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 0.54 is below the 20-day moving average (MA) of 0.66, above the 50-day MA of 0.52, and below the 200-day MA of 1.04, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 42.09 is Neutral, neither overbought nor oversold. The STOCH value of 6.83 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 38 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
Overall Rating
UnderperformOutperform
Sector (52)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
57 Neutral | $132.94M | 39.76 | 10.42% | ― | 0.18% | -55.15% | |
55 Neutral | $300.07M | ― | -198.47% | ― | ― | -38.74% | |
52 Neutral | $5.15B | 3.02 | -44.64% | 2.83% | 16.44% | -0.47% | |
49 Neutral | $194.37M | ― | -86.09% | ― | 1250.63% | 37.24% | |
46 Neutral | $246.93M | ― | 322.49% | ― | -30.66% | 36.48% | |
45 Neutral | $251.53M | ― | -32.12% | ― | ― | 10.98% | |
35 Underperform | $236.39M | ― | -500.57% | ― | ― | 81.94% |
* Healthcare Sector Average
Performance Comparison
LXRX
Lexicon Pharmaceuticals
0.54
-1.23
-69.49%
PLX
Protalix
1.67
0.47
39.17%
DBVT
DBV Technologies SA - American
11.10
4.80
76.19%
GOSS
Gossamer Bio
1.04
0.36
52.94%
FHTX
Foghorn Therapeutics
4.43
-1.57
-26.17%
TERN
Terns Pharmaceuticals
2.88
-3.37
-53.92%
Lexicon Pharmaceuticals Earnings Call Summary
Earnings Call Date:May 13, 2025
(Q1-2025)
| % Change Since: -14.29%|
Next Earnings Date:Jul 31, 2025
Earnings Call Sentiment Positive
The call presented a generally positive outlook for Lexicon Pharmaceuticals, with significant achievements such as the Novo Nordisk partnership and successful Phase 2B results for pilavapadin. Financial restructuring has been effective, although there are ongoing costs associated with R&D. The sentiment is overall positive with strong strategic positioning and reduced losses.Q1-2025 Updates
Positive Updates
Exclusive License Agreement with Novo Nordisk
Lexicon announced an exclusive license agreement with Novo Nordisk for LX9851, potentially worth up to $1 billion, including an upfront payment of $45 million received in April 2025.
Phase 2B Study Success for Pilavapadin
Lexicon identified a well-tolerated dose for pilavapadin in their Phase 2B study, demonstrating clear evidence of effect for Phase 3 studies.
Improved Financial Position
Lexicon improved their balance sheet by reducing operating costs, using the upfront payment from Novo Nordisk to reduce debt, and ending the quarter with $194.8 million in cash and short-term investments.
Strong Progress with Sotagliflozin
Lexicon remains on track with enrollment in the SONATA HCM study of sotagliflozin, with confidence in its potential for both obstructive and non-obstructive HCM.
Successful Restructuring and Cost Reduction
Selling, general and administrative expenses decreased significantly to $11.6 million from $32.1 million in Q1 2024 due to strategic repositioning.
Negative Updates
Increased R&D Expenses
Research and development expenses increased to $15.3 million from $14.4 million in the same period in 2024, reflecting late-stage development program costs.
Continued Net Loss
Lexicon reported a net loss of $25.3 million for Q1 2025, compared to a net loss of $48.4 million in the same period in 2024.
Company Guidance
During the Lexicon Pharmaceuticals first quarter 2025 financial results conference call, the company provided several forward-looking statements and updates on their drug programs. Key metrics included a license agreement with Novo Nordisk for LX9851, with Lexicon eligible for up to $1 billion in milestone payments and $75 million in upfront and near-term payments, of which $45 million was already received. The company also reported a net loss of $25.3 million for the quarter, down from $48.4 million the previous year, and ended the quarter with $194.8 million in cash and short-term investments. Operating expenses for 2025 are expected to be between $135 million and $145 million. Progress was highlighted in their pilavapadin and sotagliflozin programs, with a focus on advancing Phase 3 studies and ongoing strategic partnerships to expand their global footprint.Lexicon Pharmaceuticals Corporate Events
Executive/Board Changes
Lexicon Pharmaceuticals Appoints New CFO Scott M. Coiante
Neutral
Jan 2, 2025
Lexicon Pharmaceuticals announced the appointment of Scott M. Coiante as senior vice president and chief financial officer, effective January 2, 2025. Coiante, a certified public accountant with extensive experience in senior financial roles at various biotechnology and pharmaceutical companies, will receive a base salary of $450,000 and be eligible for performance-based bonuses and stock options as part of his compensation package.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.