Lexicon Pharmaceuticals, Inc. is a biopharmaceutical company dedicated to the end-to-end process of identifying, advancing, and bringing to market novel therapeutic compounds. ...
Lexicon Pharmaceuticals, Inc. (LXRX) is a biopharmaceutical company headquartered in The Woodlands, Texas, founded in 1995. The company focuses on the discovery, development, and commercialization of innovative small molecule drugs. Its lead drug candidate, Sotagliflozin, has successfully completed Phase III clinical trials for heart failure and type 1 diabetes, while ...Lexicon Pharmaceuticals, Inc. (LXRX) is a biopharmaceutical company headquartered in The Woodlands, Texas, founded in 1995. The company focuses on the discovery, development, and commercialization of innovative small molecule drugs. Its lead drug candidate, Sotagliflozin, has successfully completed Phase III clinical trials for heart failure and type 1 diabetes, while LX9211 is in Phase II for neuropathic pain. Lexicon leverages Nobel Prize-winning gene science to identify drug targets and has established collaborations with major pharmaceutical companies like Bristol-Myers Squibb and Genentech. As of the latest data, the company has a market cap of approximately $1.10 billion, a stock price of $2.47, and 81 full-time employees. Financially, Lexicon is in a development stage with significant R&D spending (145.1% of revenue) and negative profitability, indicated by a net profit margin of -147.4%. The company has no debt, strong liquidity (current ratio 13.37), and a robust cash position of $0.436 per share. Recent leadership under CEO Dr. Mike Exton aims to drive the company toward commercial success, with a focus on transforming patients' lives through precise medicines. The company's stock trades on NASDAQ and has a beta of 1.05, reflecting market volatility. Key financial metrics include an EV/Sales ratio of 25.47, EV/EBITDA of -20.22, and a price-to-book ratio of 6.19, indicating investor expectations for future growth despite current losses.
YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength.
QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes.
RevenueThe total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three).
$49.8M
+60.2%
-96.7%
Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day.
$-50.3M
+74.9%
-2946.5%
Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials.
+99.4%
+1.5%
-5.2%
Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on).
-98.2%
+84.5%
-81156.7%
Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales.
-101.1%
+84.3%
-92800.7%
Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock.
$-67.9M
+62.3%
-62.4%
FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine.
-136.2%
+76.5%
-4852.4%
Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe.
57.9%
-22.1%
+19.4%
Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking.
4.88x
-10.3%
-28.9%
Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground.
Operator: Welcome to the Lexicon Pharmaceuticals Second Quarter 2026 Financial Results Conference Call. [Operator Instructions] As a reminder, this call is being recorded today, August 6, 2026. I will now turn the call over to Lisa DeFrancesco, SVP, Investor Relations and Corporate Communications for Lexicon. Please go ahead, Lisa.
Lisa DeFrancesco: Thank you, Therese. Good morning, and welcome to our Second Quarter 2026 Earnings Call. Joining me today are Dr. Mike Exton, Lexicon's Chief Executive Officer and Director; Dr. Craig Granowitz, Senior Vice President and Chief Medical Officer; and Scott Coiante, Senior Vice President and Chief Financial Officer. This morning, Lexicon issued a press release announcing our financial results for the second quarter of 2026, which is available on our website at www.lexpharma.com and through our SEC filings. A webcast of this call, along with the slide presentation is also available on our website. During this call, we will review the information provided in our release, provide a corporate update and then use the remainder of our time to answer your questions. Before we begin, let me remind you that we will be making forward-looking statements, including statements relating to the safety, efficacy, clinical development, regulatory status and therapeutic and commercial potential of sotagliflozin, pilavapadin, LX9851 and our other drug programs as well as our business generally. This call may also contain forward-looking statements relating to our growth and future operating results, discovery and development of our drug candidates, strategic alliances and intellectual property as well as other matters that are not historical facts or information. Various risks may cause our actual results to differ materially from those expressed or implied in such forward-looking statements, and we refer you to the most recent annual report on Form 10-K and other SEC filings for detailed information describing such risks. I would now like to turn the call over to Mike Exton. Mike?
Michael Exton: Yes. Thank you, Lisa, and good day, everyone. Thanks for joining us. Look, I want to begin by focusing on our most recent and major accomplishment, the completion of enrollment in SONATA-HCM, our Phase III study of sotagliflozin in hypertrophic cardiomyopathy or HCM. This study is the largest Phase III study to date in both obstructive and nonobstructive HCM. This marks an important milestone for patients living with the symptoms of HCM as SOTA would be a completely novel and complementary treatment for their disease as compared to all approved treatments currently available and other agents in development. We're thrilled with the outcome of our enrollment efforts, which resulted in the study being significantly over-enrolled. I couldn't be more pleased with the accomplishment of this critical milestone, and we eagerly await the top line data, which we expect to announce in Q1 of next year. In addition to the completion of …