Fundamentals snapshot

Lexicon Pharmaceuticals, Inc.

LXRX · NCM · Healthcare · Biotechnology

Current price

$1.65

52-week range

$1.10 - $2.68

Market cap

$734.18M

One-glance verdict

Undervalued

$15.70 our estimate vs market $1.65

Wall Street consensus: $4.55 (-71.0% lower than our fair-value estimate)

Balance sheet

Healthy

-5.87x Concerning

Net cash $131.37M. Interest coverage shows how many times profit covers the interest bill.

What stands out

1 Reward 1 Risk

1 rewards · 1 risks

Reward Free cash flow was positive in 1/10 years.
Risk Return on equity was -40.2% last year — the company lost money on shareholders' equity.

View details ↓

What this company does

Lexicon Pharmaceuticals, Inc.

Lexicon Pharmaceuticals is a drug company that creates new medicines for serious health problems like heart disease and diabetes. Their main money comes from selling these drugs, and it matters because it shows if their medicines are helping people and making the company successful.

How the company got here

Lexicon Pharmaceuticals started in 1995 as Lexicon Genetics, focusing on using gene knockout technology in mice to understand gene functions and find potential drug targets. This early work, part of their Genome5000 program, helped them identify over 100 targets for new medicines. Over time, the company shifted its focus from just genomics research to drug discovery and development, aiming to create treatments for serious, chronic diseases. In 2007, they changed their name to Lexicon Pharmaceuticals to better reflect this evolution. They have since advanced several drug candidates into clinical trials and have established collaborations with other pharmaceutical companies to help develop and commercialize their discoveries.

What it actually does

Lexicon Pharmaceuticals is a biopharmaceutical company dedicated to discovering, developing, and bringing to market new medicines for serious and chronic human diseases. They use their expertise in genetics and molecular biology to pinpoint specific targets in the body that, when acted upon by a drug, could treat a disease. Their approach involves creating small molecule drugs, which are typically pills, designed to interact with these targets. The company's research spans several key areas, including cardiovascular diseases, metabolic disorders like diabetes and obesity, and neurological conditions such as neuropathic pain.

Cardiometabolic Diseases

This segment of Lexicon's business focuses on developing treatments for conditions related to the heart and metabolism, such as heart failure, type 2 diabetes, and obesity. A key drug in this area is sotagliflozin, which has been developed for conditions like heart failure (marketed as INPEFA) and is being investigated for hypertrophic cardiomyopathy (HCM), a genetic heart condition. They are also developing LX9851, a drug candidate specifically aimed at treating obesity and related metabolic issues. These treatments aim to address significant unmet medical needs in patients with chronic conditions affecting their heart and how their body processes energy.

Neuropathic Pain

Lexicon is also developing treatments for neuropathic pain, which is a type of pain caused by damage or dysfunction of the nervous system. Their main drug candidate in this area is pilavapadin (also known as LX9211). This drug is being studied for its potential to treat conditions like diabetic peripheral neuropathic pain (pain caused by diabetes) and postherpetic neuralgia (pain that can occur after shingles). The development in this area highlights the company's strategy to target diseases where genetic insights can guide the creation of specific therapies.

Price history

How the share price has moved

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Loading price history…

Earnings history

Last 8 quarters — what happened

Click any quarter to read the call summary and what the numbers say.

Free cash flow by quarter (oldest to newest)

FY2024 Q3 $-53.93M FY2024 Q4 $-21.96M FY2025 Q2 $16.99M FY2025 Q3 $-23.83M FY2025 Q4 $-17.23M

Revenue $692.00K

Net income $-31.77M

Diluted EPS -0.07

Operating cash flow $-9.19M

Free cash flow —

Revenue $21.10M

Net income $-1.04M

Diluted EPS 0.00

Operating cash flow $-14.73M

Free cash flow —

Revenue $5.49M

Net income $-15.53M

Diluted EPS -0.04

Operating cash flow $-17.23M

Free cash flow $-17.23M

Revenue $14.18M

Net income $-12.77M

Diluted EPS -0.04

Operating cash flow $-23.83M

Free cash flow $-23.83M

Revenue $28.87M

Net income $3.25M

Diluted EPS 0.01

Operating cash flow $16.99M

Free cash flow $16.99M

Revenue $1.26M

Net income $-25.30M

Diluted EPS -0.07

Operating cash flow $-43.78M

Free cash flow —

Revenue $26.55M

Net income $-33.77M

Diluted EPS -0.08

Operating cash flow $-21.49M

Free cash flow $-21.96M

Revenue $1.75M

Net income $-64.81M

Diluted EPS -0.18

Operating cash flow $-53.62M

Free cash flow $-53.93M

Is it cheap or expensive?

Fair value $15.70 vs current price $1.65

Wall Street consensus is the average analyst price target: $4.55 (-71.0% lower than our fair-value estimate).

Our most-likely fair value is $15.70 a share — about 851.7% above today's price of $1.65, so the stock currently looks cheap (undervalued).

undervalued

We estimate the cash this business should generate over the next 10 years and beyond, then convert it to today's money for a fair value per share, in its trading currency. Cautious, middle and optimistic growth cases give a range. Not for banks/insurers.

Base

Growth 15.0% · Discount 8.5% · Terminal 3.0%

$15.70

Bear

Growth 5.0% · Discount 8.5% · Terminal 3.0%

$9.04

Bull

Growth 25.0% · Discount 8.5% · Terminal 3.0%

$26.77

Is it drowning in debt?

Healthy

Net cash $131.4M - more cash than debt. Interest coverage -5.9x.

Net debt $-131.37M

Interest coverage -5.87x

Lexicon Pharmaceuticals, Inc. is healthier than 0 of 1 peers on balance-sheet leverage.

Healthy

Worse cushion Baseline Better cushion

LXRX BASELINE Lexicon Pharmaceuticals, Inc.

Total debt $59.24M Interest coverage -5.87x This is the baseline the peer rows are being compared against.

What you should know

The case for and against LXRX

1 Reward 1 Risk

Rewards

Free cash flow was positive in 1/10 years.

Risks

Return on equity was -40.2% last year — the company lost money on shareholders' equity.

The numbers

All the key metrics, grouped by purpose

Tap any ? icon to learn what it means.

Valuation

How expensive the stock looks

P/E (TTM)

—

Forward P/E

-8.66x

P/B

4.21x

P/S

17.70x

EV/EBITDA

-11.16x

PEG ratio

-13.77x

Profitability

How much profit each dollar creates

Gross margin

86.0%

Operating margin

-3,835.3%

Net margin

-147.4%

ROE

-40.2%

ROA

-14.3%

Health

Liquidity and balance-sheet strength

Debt / equity

0.34x

Current ratio

13.37x

Quick ratio

13.07x

Total debt

$59.24M

Total cash

$190.61M

Growth

How the business has been compounding

Revenue TTM

$41.47M

Revenue 5Y CAGR

259.6%

EPS TTM

-0.16

EPS 5Y CAGR

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Cash flow

How much cash the business throws off

Operating CF TTM

$-64.99M

Free CF TTM

$-67.85M

FCF margin

-163.6%

Dividend

Shareholder payout

Yield

0.0%

Payout ratio

0.0%

Last ex-div date

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Lexicon Pharmaceuticals, Inc.

$15.70 our estimate vs market $1.65

-5.87x Concerning

1 rewards · 1 risks

Lexicon Pharmaceuticals, Inc.

How the company got here

What it actually does

Cardiometabolic Diseases

Neuropathic Pain

How the share price has moved

Last 8 quarters — what happened

Fair value ? $15.70 vs current price $1.65

Healthy

The case for and against LXRX

Rewards

Risks

All the key metrics, grouped by purpose

How expensive the stock looks

How much profit each dollar creates

Liquidity and balance-sheet strength

How the business has been compounding

How much cash the business throws off

Shareholder payout

Fair value $15.70 vs current price $1.65