Lexicon Pharmaceuticals (NASDAQ:LXRX) Announces Earnings Results, Misses Estimates By $0.01 EPS

Key Points

• Lexicon Pharmaceuticals missed quarterly estimates, reporting an adjusted loss of $0.06 per share versus the expected $0.05 loss. Revenue fell to $0.69 million from $28.9 million a year earlier, largely because the prior-year period included a $27.5 million Novo Nordisk licensing payment.
• The company completed enrollment in its Phase 3 SONATA-HCM trial ahead of schedule and expects top-line results in the first quarter of 2027. Lexicon also anticipates resubmitting the ZYNQUISTA NDA in the fourth quarter of 2026.
• Lexicon ended June with $190.6 million in cash and short-term investments and secured a new Hercules Capital facility providing $55 million upfront, with up to $45 million in additional funding potentially available.

Lexicon Pharmaceuticals (NASDAQ:LXRX - Get Free Report) announced its quarterly earnings results on Thursday. The biopharmaceutical company reported ($0.06) earnings per share for the quarter, missing analysts' consensus estimates of ($0.05) by ($0.01), Zacks reports. Lexicon Pharmaceuticals had a negative return on equity of 39.56% and a negative net margin of 147.38%.The business had revenue of $0.69 million for the quarter, compared to analyst estimates of $3.99 million.

Here are the key takeaways from Lexicon Pharmaceuticals' conference call:

• SONATA-HCM enrollment was completed significantly ahead of plan, with the Phase 3 trial including both obstructive and non-obstructive HCM patients. Lexicon expects top-line results in the first quarter of 2027.
• Lexicon expects to satisfy the FDA’s requirements for a ZYNQUISTA (sotagliflozin) resubmission after Steno-1 reaches the required exposure level by the end of August; the company currently anticipates filing the NDA in the fourth quarter of 2026. DKA rates in Steno-1 remain similar to standard of care and below prior inTandem-trial levels.
• Second-quarter revenue fell to $0.7 million from $28.9 million a year earlier, largely because the prior-year period included $27.5 million in Novo Nordisk licensing revenue. Lexicon reported a $31.8 million net loss, versus net income of $3.3 million in the prior-year quarter, while R&D spending increased due to SONATA.
• Lexicon strengthened its liquidity, ending June with $190.6 million in cash and short-term investments and replacing its prior debt with a Hercules Capital facility that provided $55 million at closing, with up to $45 million more potentially available subject to conditions.
• Novo Nordisk continues to advance LX9851, Lexicon’s first-in-class oral ACSL5 inhibitor for obesity, in Phase 1 development. Lexicon could receive another $10 million milestone payment later this year.

Lexicon Pharmaceuticals Price Performance

Shares of LXRX stock traded up $0.11 during trading on Friday, hitting $2.47. The company had a trading volume of 3,085,741 shares, compared to its average volume of 2,836,652. The firm has a market capitalization of $1.10 billion, a P/E ratio of -16.47 and a beta of 1.08. Lexicon Pharmaceuticals has a one year low of $1.02 and a one year high of $2.68. The company has a debt-to-equity ratio of 0.24, a quick ratio of 18.77 and a current ratio of 18.80. The stock's 50-day moving average price is $2.20 and its 200 day moving average price is $1.86.

Wall Street Analyst Weigh In

A number of research firms recently weighed in on LXRX. Zacks Research cut Lexicon Pharmaceuticals from a "strong-buy" rating to a "hold" rating in a research note on Monday. Citigroup increased their price objective on shares of Lexicon Pharmaceuticals from $2.30 to $3.10 and gave the company a "buy" rating in a research report on Monday, May 11th. Finally, Weiss Ratings upgraded shares of Lexicon Pharmaceuticals from a "sell (e+)" rating to a "sell (d-)" rating in a research note on Thursday, July 23rd. Two analysts have rated the stock with a Buy rating, one has given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, Lexicon Pharmaceuticals has a consensus rating of "Hold" and a consensus price target of $4.55.

Institutional Trading of Lexicon Pharmaceuticals

Institutional investors have recently modified their holdings of the stock. Hudson Bay Capital Management LP acquired a new position in Lexicon Pharmaceuticals in the second quarter valued at about $26,000. Security National Bank of Sioux City Iowa IA bought a new position in Lexicon Pharmaceuticals in the 4th quarter valued at about $31,000. EntryPoint Capital LLC acquired a new position in shares of Lexicon Pharmaceuticals in the 4th quarter valued at approximately $39,000. Virtu Financial LLC bought a new stake in shares of Lexicon Pharmaceuticals during the 4th quarter worth approximately $42,000. Finally, CIBC Asset Management Inc acquired a new stake in shares of Lexicon Pharmaceuticals during the 4th quarter worth approximately $45,000. 74.70% of the stock is currently owned by institutional investors.

About Lexicon Pharmaceuticals

Lexicon Pharmaceuticals, Inc is a biopharmaceutical company focused on the discovery and development of novel medicines through its proprietary genome biology platform. By leveraging large-scale gene knockout libraries, the company identifies potential therapeutic targets and advances them through preclinical and clinical development. Lexicon's approach emphasizes the translation of genetic insights into targeted therapies for a range of human diseases.

The company's most advanced product is telotristat ethyl (sold under the brand name XERMELO), an oral treatment approved for the management of carcinoid syndrome diarrhea in patients inadequately controlled by somatostatin analog therapy.

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