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

Lexicon Pharmaceuticals (NASDAQ:LXRX) posted its quarterly earnings results on Thursday. The biopharmaceutical company reported ($0.06) EPS 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

LXRX traded up $0.11 on Friday, reaching $2.47. The stock had a trading volume of 3,085,741 shares, compared to its average volume of 2,836,652. The company has a current ratio of 18.80, a quick ratio of 18.77 and a debt-to-equity ratio of 0.24. The company has a market capitalization of $1.10 billion, a price-to-earnings ratio of -16.47 and a beta of 1.08. Lexicon Pharmaceuticals has a fifty-two week low of $1.02 and a fifty-two week high of $2.68. The firm has a 50-day moving average of $2.20 and a 200-day moving average of $1.86.

Analyst Ratings Changes

Several research analysts have commented on LXRX shares. Weiss Ratings raised Lexicon Pharmaceuticals from a “sell (e+)” rating to a “sell (d-)” rating in a research note on Thursday, July 23rd. Citigroup upped their price objective on shares of Lexicon Pharmaceuticals from $2.30 to $3.10 and gave the stock a “buy” rating in a research report on Monday, May 11th. Finally, Zacks Research downgraded shares of Lexicon Pharmaceuticals from a “strong-buy” rating to a “hold” rating in a research note on Monday. Two equities research analysts have rated the stock with a Buy rating, one has given a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat.com, Lexicon Pharmaceuticals currently has an average rating of “Hold” and a consensus target price of $4.55.

Institutional Investors Weigh In On Lexicon Pharmaceuticals

Institutional investors have recently added to or reduced their stakes in the business. Bank of America Corp DE boosted its holdings in Lexicon Pharmaceuticals by 27.4% in the fourth quarter. Bank of America Corp DE now owns 136,407 shares of the biopharmaceutical company’s stock valued at $101,000 after acquiring an additional 29,319 shares during the last quarter. Invesco Ltd. boosted its stake in shares of Lexicon Pharmaceuticals by 173.5% in the 1st quarter. Invesco Ltd. now owns 285,759 shares of the biopharmaceutical company’s stock valued at $132,000 after purchasing an additional 181,265 shares during the last quarter. AQR Capital Management LLC bought a new stake in shares of Lexicon Pharmaceuticals in the 1st quarter valued at $541,000. Acadian Asset Management LLC acquired a new stake in shares of Lexicon Pharmaceuticals during the first quarter worth $263,000. Finally, XTX Topco Ltd increased its position in shares of Lexicon Pharmaceuticals by 431.4% during the second quarter. XTX Topco Ltd now owns 66,276 shares of the biopharmaceutical company’s stock worth $63,000 after buying an additional 53,805 shares during the period. 74.70% of the stock is owned by institutional investors.

Lexicon Pharmaceuticals Company Profile

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.