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Lexicon Pharmaceuticals
(NASDAQ:LXRX)
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Rating:46Neutral
Price Target:
$1.50
▼(-35.90% Downside)
Action:Reiterated
Date:10/11/26
The score is held back primarily by weak financial performance (ongoing losses, volatile/declining revenue, and continued cash burn) and bearish technicals (below major moving averages with negative MACD). The earnings call adds support via meaningful late-stage/pipeline milestones and stronger liquidity, but valuation remains constrained by the lack of profits and no dividend support.
Positive Factors
Deleveraged Balance Sheet
The latest balance sheet shows zero debt and higher equity, reducing financial risk and giving Lexicon more flexibility to fund late-stage research and commercialization. This strengthens financial resilience, although continued losses still make disciplined capital allocation important.
Negative Factors
Persistent Cash Burn
Operating and free cash flow remain negative at about $80 million TTM, even after improvement from 2024. Continued cash burn means Lexicon must use liquidity or external funding to sustain trials and commercialization, leaving less flexibility if programs or financing take longer than planned.
Read all positive and negative factors
Positive Factors
Negative Factors
Deleveraged Balance Sheet
The latest balance sheet shows zero debt and higher equity, reducing financial risk and giving Lexicon more flexibility to fund late-stage research and commercialization. This strengthens financial resilience, although continued losses still make disciplined capital allocation important.
Read all positive factors
Lexicon Pharmaceuticals (LXRX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$658.53M
Dividend YieldN/A
Average Volume (3M)2.80M
Price to Earnings (P/E)―
Beta (1Y)1.77
Revenue Growth-29.03%
EPS Growth54.11%
CountryUS
Employees81
SectorHealthcare
Sector Strength45
IndustryBiotechnology
Share Statistics
EPS (TTM)-0.15
Shares Outstanding444,955,930
10 Day Avg. Volume1,796,325
30 Day Avg. Volume2,803,674
Financial Highlights & Ratios
PEG Ratio0.11
Price to Book (P/B)3.88
Price to Sales (P/S)8.38
P/FCF Ratio-6.15
Enterprise Value/Market Cap1.40
Enterprise Value/Revenue22.16
Enterprise Value/Gross Profit22.42
Enterprise Value/Ebitda-17.59
Forecast
1Y Price Target
$5.78Price Target Upside146.79% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)-0.17
Revenue Forecast (FY)$37.17M
Lexicon Pharmaceuticals Business Overview & Revenue Model
Company Description
Lexicon Pharmaceuticals, Inc. is a biopharmaceutical company dedicated to the end-to-end process of identifying, advancing, and bringing to market novel therapeutic compounds. Its development pipeline includes orally administered small molecule dr...
How the Company Makes Money
Lexicon Pharmaceuticals makes money primarily through a combination of (1) collaboration and licensing arrangements and (2) any product-related revenue from commercialized drugs, if applicable, along with (3) other operating income sources typical...
Lexicon Pharmaceuticals Earnings Call Summary
Earnings Call Date:Aug 06, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 11, 2026
Earnings Call Sentiment Positive
The call highlighted meaningful clinical and strategic progress — notably the over-enrollment of SONATA-HCM, approaching NDA resubmission for Zynquista supported by favorable STENO1 exposure and DKA data, international regulatory activity, and milestone-driven partnership progress (LX9851) — and the company strengthened liquidity with cash rising to $190.6M and a new Hercules loan facility. Counterbalancing these positives were a steep year-over-year revenue decline (driven by lack of prior-period licensing revenue), a return to a net loss of $31.8M, increased R&D spending, and some timing uncertainty due to reliance on an investigator-led study for NDA formatting and submission. Overall, the call presented strong operational and pipeline momentum alongside expected near-term financial volatility as the company invests in late-stage programs.Positive Updates
Completion and Over-enrollment of SONATA-HCM Phase III
Completed enrollment in SONATA-HCM (largest Phase III in obstructive and nonobstructive HCM) with significant over-enrollment, improving study power; primary endpoint is change in KCCQ Clinical Summary Score at week 26; top-line data expected in Q1 2027.
Negative Updates
Sharp Revenue Decline Year-over-Year
Total revenues fell to $0.7 million in Q2 2026 from $28.9 million in Q2 2025, a decrease of approximately 97.6%, driven by absence of the $27.5 million licensing revenue recognized in Q2 2025 (previous Novo license recognition).
Read all updates
Q2-2026 Updates
Positive
Negative
Completion and Over-enrollment of SONATA-HCM Phase III
Completed enrollment in SONATA-HCM (largest Phase III in obstructive and nonobstructive HCM) with significant over-enrollment, improving study power; primary endpoint is change in KCCQ Clinical Summary Score at week 26; top-line data expected in Q1 2027.
Read all positive updates
Company Guidance
Management reiterated 2026 financial guidance and provided several key metrics: Q2 2026 revenue was $0.7M (vs. $28.9M in Q2 2025, which included $27.5M of Novo licensing revenue); R&D expense was $17.4M (vs. $15.7M), SG&A was $9.8M (vs. $9.4M); net loss was $31.8M, or $0.07 per share (vs. net income $3.3M, $0.01 per share), which included noncash stock‑based compensation of $3.3M (vs. $3.2M) and a $4.3M loss on early extinguishment of debt ($0.01 per share). Cash, cash equivalents and short‑term investments totaled $190.6M as of June 30, 2026 (up from $125.2M at Dec. 31, 2025). The company reiterated 2026 operating expense guidance of $100–110M, with R&D of $63–68M and SG&A of $37–42M; noted a $100M Hercules debt facility announced in May with a $55M initial tranche funded (used to repay Oxford), and additional $20M and $25M tranches available subject to milestones/consent, with an 18‑month interest‑only period and two possible 6‑month extensions. Timing and milestones highlighted: SONATA‑HCM top‑line expected Q1 2027; STENO1 exposure for the Zynquista NDA expected by end of August with a planned NDA resubmission in Q4 2026 (end‑October target) and possible regulatory action in mid‑2027; LX9851 has triggered two $10M Novo milestones to date with a potential third $10M later this year; and targeted precommercial investments in medical education, marketing and market access were initiated in Q2.Lexicon Pharmaceuticals Financial Statement Overview
Summary
Income Statement
28
Negative
Balance Sheet
63
Positive
Cash Flow
24
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 41.47M | 49.80M | 31.08M | 1.20M | 139.00K | 298.00K |
| Gross Profit | 40.99M | 49.53M | 30.46M | -57.77M | -52.38M | -54.75M |
| EBITDA | -52.25M | -41.38M | -184.29M | -169.76M | -100.03M | -86.66M |
| Net Income | -61.12M | -50.34M | -200.40M | -177.12M | -101.94M | -87.76M |
Balance Sheet | ||||||
| Total Assets | 250.06M | 184.99M | 298.42M | 229.43M | 194.30M | 136.91M |
| Cash, Cash Equivalents and Short-Term Investments | 190.61M | 96.23M | 237.96M | 170.03M | 138.36M | 86.74M |
| Total Debt | 59.28M | 62.24M | 108.40M | 106.06M | 55.29M | 2.28M |
| Total Liabilities | 75.53M | 77.45M | 152.47M | 136.32M | 77.17M | 23.31M |
| Stockholders Equity | 174.53M | 107.54M | 145.95M | 93.11M | 117.12M | 113.59M |
Cash Flow | ||||||
| Free Cash Flow | -79.72M | -67.85M | -179.81M | -162.37M | -90.18M | -88.24M |
| Operating Cash Flow | -79.72M | -67.85M | -178.78M | -161.90M | -88.85M | -87.02M |
| Investing Cash Flow | -100.03M | 113.02M | -15.38M | -49.94M | -71.08M | 2.11M |
| Financing Cash Flow | 174.07M | -48.50M | 238.35M | 187.96M | 142.21M | 22.71M |
Lexicon Pharmaceuticals Technical Analysis
Negative
2.34
Price Trends
1.96
Negative
2.10
Negative
1.88
Negative
Market Momentum
-0.14
Positive
28.44
Positive
16.48
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 2.34 is above the 20-day moving average (MA) of 1.66, above the 50-day MA of 1.96, and above the 200-day MA of 1.88, indicating a bearish trend. The MACD of -0.14 indicates Positive momentum. The RSI at 28.44 is Positive, neither overbought nor oversold. The STOCH value of 16.48 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
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $944.27M | 2.86 | 96.49% | ― | 3.31% | 221.64% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
48 Neutral | $452.28M | -10.61 | -14.98% | ― | 427.32% | 85.31% | |
47 Neutral | $263.90M | -1.38 | -33.22% | ― | 215.59% | 22.48% | |
46 Neutral | $658.53M | -9.84 | -40.40% | ― | -29.03% | 54.11% | |
44 Neutral | $435.69M | -1.74 | -220.07% | ― | 12.00% | -9.21% |
* Healthcare Sector Average
LXRX
Lexicon Pharmaceuticals
1.48
0.11
8.03%
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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.