Lexicon Pharmaceuticals (LXRX) AI Stock Analysis

• Market Cap: $486.95M
• Dividend Yield: N/A
• Average Volume (3M): 2.74M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.26
• Revenue Growth: 1504.83%
• EPS Growth: 56.81%
• Country: US
• Employees: 103
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): 0.01
• Shares Outstanding: 363,398,860
• 10 Day Avg. Volume: 3,297,817
• 30 Day Avg. Volume: 2,735,746
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.55
• Enterprise Value/Revenue: 4.56
• Enterprise Value/Gross Profit: 4.61
• Enterprise Value/Ebitda: -2.42
• 1Y Price Target: $1.94
• Price Target Upside: 44.78% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4

• Rating: 57 Neutral
• Price Target: $1.50 ▲(11.94% Upside)

The overall stock score is driven by strong earnings call results and positive technical indicators, despite financial performance challenges and valuation concerns. The company's strategic repositioning and revenue growth are significant positives, but profitability and cash flow issues remain critical risks.

Positive Factors

Revenue Growth

The substantial increase in revenue, primarily from licensing, indicates strong market demand and successful strategic partnerships, which are crucial for long-term growth.

Strategic Repositioning

The strategic pivot to focus on R&D and reduce operating expenses enhances the company's ability to innovate and sustain long-term competitive advantage.

Promising Drug Development

Progress in drug development, particularly pilavapadin, strengthens the pipeline and potential future revenue streams, supporting long-term business sustainability.

Negative Factors

Cash Flow Challenges

Persistent negative cash flows can hinder operational flexibility and investment in growth initiatives, posing a risk to long-term financial health.

Dependence on Partnerships

Heavy reliance on external partnerships for drug development can create vulnerabilities if collaborations face disruptions, impacting strategic goals.

Regulatory Challenges

Delays in regulatory approval processes can postpone product launches, affecting revenue timelines and increasing development costs.

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 exhibits strong revenue growth but faces significant challenges with profitability and cash flow. The company has improved its leverage but continues to struggle with operational inefficiencies and negative cash flows.

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.

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.

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.

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	57.77M	30.46M	1.12M	-288.00K	-54.75M	22.07M
EBITDA	-109.84M	-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	61.45M	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: Positive
• Last Price: 1.34
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 1.34 is below the 20-day moving average (MA) of 1.45, above the 50-day MA of 1.29, and above the 200-day MA of 0.88, indicating a neutral trend. The MACD of 0.01 indicates Positive momentum. The RSI at 46.81 is Neutral, neither overbought nor oversold. The STOCH value of 9.98 is Positive, 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
RIGL	―	$567.18M	5.84	376.09%	―	105.62%	―
LXRX	―	$486.95M	-4.02	-65.30%	―	1504.83%	56.81%
RGNX	―	$647.59M	―	-62.49%	―	74.95%	34.25%
PRTA	―	$564.14M	-1.86	-66.85%	―	-95.24%	-493.05%
Sector *	―	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
BCYC	―	$566.93M	―	-31.58%	―	-51.13%	7.57%
OPT	―	$480.87M	-3.01	―	―	-80.09%	60.14%

Lexicon Pharmaceuticals Corporate Events

Lexicon Pharmaceuticals Advances Study on Sotagliflozin for Hypertrophic Cardiomyopathy

Study Overview: Lexicon Pharmaceuticals is conducting a study titled ‘A Randomized, Double-blind, Placebo-controlled, Parallel-group, Multicenter Study to Evaluate the Efficacy and Safety of Sotagliflozin in Symptomatic Obstructive and Non-obstructive Hypertrophic Cardiomyopathy (SONATA-HCM)’. The study aims to assess changes in symptoms and functional limitations in patients with hypertrophic cardiomyopathy (HCM) when treated with sotagliflozin compared to a placebo. This research is significant as it seeks to provide a new treatment option for individuals suffering from this condition.

Lexicon Pharmaceuticals Reports Strong Q2 2025 Results

Lexicon Pharmaceuticals, a biopharmaceutical company focused on pioneering innovative medicines through genomics, has reported its financial results for the second quarter of 2025, highlighting significant progress in its research and development initiatives. The company, known for its unique genomics target discovery platform, is advancing treatments in areas such as heart failure, neuropathic pain, and diabetes.

Lexicon Pharmaceuticals Reports Strong Q2 2025 Earnings

Lexicon Pharmaceuticals’ recent earnings call conveyed a positive sentiment, driven by impressive financial results and strategic advancements. The company reported significant revenue growth and cost reductions, which, despite a decrease in cash reserves, painted an optimistic picture for stakeholders. The progress in research and development programs and strategic partnerships further bolstered the company’s outlook.

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.