Lexicon Pharmaceuticals Earns Third $10 Million Milestone Payment from Novo Nordisk Following Achievement of Key Phase 1 Development Milestone for LX9851

Rhea-AI Summary

Lexicon Pharmaceuticals (Nasdaq: LXRX) reported earning a third $10 million milestone payment in 2026 from Novo Nordisk, triggered by a key patient dosing milestone in the ongoing Phase 1 clinical program for LX9851, an oral small molecule ACSL5 inhibitor for obesity and related metabolic disorders.

According to Lexicon, LX9851 is being developed by Novo Nordisk under an exclusive worldwide license agreement signed in 2025, under which Lexicon is eligible for up to $1 billion in upfront and milestone payments. With this event, Lexicon has received $75 million to date and is also entitled to tiered royalties on any future net sales. The Phase 1 trial, initiated in March 2026 in overweight or obese adults, evaluates safety, tolerability, pharmacokinetics and pharmacodynamics and is expected to complete in the first quarter of 2027. Preclinical data presented in 2024 showed enhanced weight and fat mass reductions when LX9851 was combined with semaglutide.

Positive

• Third $10 million milestone payment from Novo Nordisk in 2026
• Cumulative $75 million earned toward up to $1 billion potential milestones
• Exclusive worldwide license with Novo Nordisk for LX9851 development and commercialization
• Entitlement to tiered royalties on future net sales of LX9851
• Phase 1 trial for LX9851 underway in overweight and obese adults since March 2026

Negative

• LX9851 remains in Phase 1, with program expected to complete in Q1 2027
• Current revenue from LX9851 collaboration limited to $75 million versus up to $1 billion potential milestones

Market Context

Tag-specific clinical-trial history averaged a 6.76% move across five events, adding measurable cont...

Analysis

Tag-specific clinical-trial history averaged a 6.76% move across five events, adding measurable context for this milestone. The active S-3 is a resale registration, while Phase 1 development remains an execution risk.

Key Figures

Milestone payment: $10 million Potential collaboration payments: $1 billion Milestones earned: $75 million +3 more

6 metrics

Milestone payment $10 million Third milestone payment earned in 2026 from Novo Nordisk

Potential collaboration payments $1 billion Total potential upfront, development, regulatory and commercial milestone payments

Milestones earned $75 million Cumulative amount earned under the Novo Nordisk collaboration

Trial phase Phase 1 Ongoing LX9851 clinical development program

Program initiation March 2026 Phase 1 development program initiated by Novo Nordisk

Expected program completion First quarter of 2027 Expected completion of the LX9851 Phase 1 program

Previous Clinical trial Reports

5 past events · Latest: Jul 27 (Positive)

Same Type Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
Jul 27	Phase 3 enrollment	Positive	-2.6%	Completed randomization in the pivotal SONATA-HCM study after exceeding its enrollment target
Mar 23	Phase 1 initiation	Positive	+5.1%	Initiated the Phase 1 study of oral obesity candidate LX9851 with Novo Nordisk
Jan 21	FDA Phase 2 meeting	Positive	+19.1%	FDA raised no objections to advancing pilavapadin into Phase 3 development
Dec 05	Clinical data presentation	Positive	-1.4%	Presented sotagliflozin adipose-distribution data from the SOTA-P-CARDIA trial
Nov 08	HFpEF clinical data	Positive	+13.6%	Reported statistically significant improvements in multiple cardiac and functional measures

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Tag-specific clinical-trial news aligned with positive price reactions in three of five events but diverged in two, including a completed enrollment announcement.

Key Terms

pharmacokinetics, pharmacodynamics, acsl5, phase 1

4 terms

pharmacokinetics medical

"investigating the safety, tolerability, pharmacokinetics and pharmacodynamics"

Pharmacokinetics is the study of how a substance, such as a drug or chemical, moves through and is processed by the body over time. It tracks how it is absorbed, distributed, broken down, and eventually eliminated. For investors, understanding pharmacokinetics helps gauge the effectiveness, safety, and potential risks of new medications or treatments, which can influence a company’s success and valuation in the healthcare industry.

pharmacodynamics medical

"tolerability, pharmacokinetics and pharmacodynamics of single and multiple"

Pharmacodynamics is how a drug actually affects the body — the strength, type and duration of its effects and the relationship between dose and response. Think of it like how turning a thermostat changes room temperature: it shows what the drug does and how much is needed to get the desired effect. Investors care because these properties drive clinical success, dosing convenience, safety profile and competitive advantage, all of which influence commercial potential and regulatory approval.

acsl5 medical

"oral small molecule inhibitor of ACSL5 being developed for obesity"

ACSL5 is a human gene that makes an enzyme responsible for activating long-chain fatty acids so cells can use or store them; think of it as a factory worker that tags raw fat molecules so they can be processed. Investors should care because changes in ACSL5 activity are linked to metabolic diseases, cancer and drug responses, making it a potential diagnostic marker or drug target that can influence the value of related biotech and pharma projects.

phase 1 medical

"following the achievement of a key patient dosing milestone in the ongoing Phase 1"

Phase 1 is the first stage of testing a new drug or medical treatment in people, focused primarily on safety, how the body handles the product, and finding a tolerated dose. Think of it as a short, tightly controlled experiment with a small group to check for dangerous side effects before wider testing; for investors it is an early milestone that reduces some uncertainty but still carries high risk and potential for both big value changes and setbacks.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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LX9851 is a first-in-class, oral non-incretin candidate being developed by Novo Nordisk for the treatment of obesity and associated metabolic disorders

Lexicon is eligible to receive up to $1 billion in total upfront and milestone payments from the collaboration, plus royalties on net sales

THE WOODLANDS, Texas, Aug. 24, 2026 (GLOBE NEWSWIRE) -- Lexicon Pharmaceuticals, Inc. (Nasdaq: LXRX) today announced that it has earned a third $10 million milestone payment in 2026 from Novo Nordisk A/S following the achievement of a key patient dosing milestone in the ongoing Phase 1 clinical development program for LX9851, a first-in-class oral small molecule inhibitor of ACSL5 being developed for obesity and associated metabolic disorders.

LX9851 is being advanced by Novo Nordisk under the companies' exclusive worldwide license agreement signed in 2025. Under the terms of the agreement, Novo Nordisk obtained an exclusive, worldwide license to develop, manufacture and commercialize LX9851 in all indications.

With the achievement of this milestone, Lexicon has now earned $75 million of the $1 billion in potential upfront, development, regulatory and commercial milestone payments available under its collaboration with Novo Nordisk. In addition, Lexicon is entitled to receive tiered royalties on future net sales of LX9851.

“This milestone represents another important step forward in the development of LX9851 and further demonstrates the strong execution of our collaboration with Novo Nordisk,” said Mike Exton, CEO and director of Lexicon. “In just over a year, the program has progressed from a licensing agreement to the successful achievement of multiple clinical development milestones. We believe LX9851's novel mechanism and oral profile have the potential to offer an important new approach for people living with obesity and associated metabolic diseases, and we remain excited about the program's continued advancement."

The Phase 1 development program for LX9851 was initiated by Novo Nordisk in March 2026 and is investigating the safety, tolerability, pharmacokinetics and pharmacodynamics of single and multiple ascending doses of LX9851 compared to placebo in adult subjects who are overweight or obese. The Phase 1 program is expected to be completed in the first quarter of 2027.

About LX9851
LX9851, discovered by Lexicon and in development by Novo Nordisk, is a potent and selective oral small molecule inhibitor of Acyl CoA Synthetase 5 (ACSL5)​. ACSL5 plays a key role in the metabolic pathway which regulates fat accumulation and energy balance. Preclinical in vivo efficacy data presented at Obesity Week 2024 show that LX9851, when combined with semaglutide, significantly reduced weight, food intake and fat mass compared to semaglutide alone. Separately, LX9851 mitigated weight regain and had positive effects on liver steatosis when introduced after semaglutide discontinuation in the preclinical studies.

About Lexicon Pharmaceuticals 
Lexicon is a biopharmaceutical company with a mission of pioneering medicines that transform patients’ lives. Lexicon has a pipeline of drug candidates in discovery, preclinical, and clinical development in neuropathic pain, hypertrophic cardiomyopathy (HCM), obesity and metabolic disorders, and other cardiometabolic indications. For additional information, please visit www.lexpharma.com.

Safe Harbor Statement   
This press release contains “forward-looking statements,” including statements relating to the preclinical and clinical development of LX9851, Lexicon’s financial position and long-term outlook on its business, growth and future operating results, strategic alliances and intellectual property, as well as other matters that are not historical facts or information. All forward-looking statements are based on management’s current assumptions and expectations and involve risks, uncertainties and other important factors, specifically including Lexicon’s ability to meet its capital requirements, conduct preclinical and clinical development and obtain necessary regulatory approvals of its other drug candidates on its anticipated timelines, achieve its operational objectives, obtain patent protection for its discoveries and establish strategic alliances, as well as additional factors relating to manufacturing, intellectual property rights, and the therapeutic or commercial value of its drug candidates. Any of these risks, uncertainties and other factors may cause Lexicon’s actual results to be materially different from any future results expressed or implied by such forward-looking statements. Information identifying such important factors is contained under “Risk Factors” in Lexicon’s annual report on Form 10-K for the year ended December 31, 2025 and other subsequent disclosure documents filed with the Securities and Exchange Commission. Lexicon undertakes no obligation to update or revise any such forward-looking statements, whether as a result of new information, future events or otherwise.  

For Media Inquiries:
Dave Belian
Lexicon Pharmaceuticals, Inc.
lexinvest@lexpharma.com

For Investor Inquiries:
Lisa DeFrancesco
Lexicon Pharmaceuticals, Inc.
lexinvest@lexpharma.com

FAQ

What milestone payment did Lexicon Pharmaceuticals (LXRX) receive from Novo Nordisk for LX9851 in August 2026?

Lexicon received a $10 million milestone payment from Novo Nordisk after achieving a key patient dosing milestone in the Phase 1 program for LX9851. According to Lexicon, this is the third $10 million milestone payment it has earned in 2026 under the collaboration.

How much milestone funding is Lexicon Pharmaceuticals eligible to receive for LX9851 under the Novo Nordisk deal?

Lexicon is eligible for up to $1 billion in upfront, development, regulatory and commercial milestone payments from Novo Nordisk for LX9851. According to Lexicon, it has earned $75 million of this potential total so far, plus it is entitled to tiered royalties on future net sales.

What stage of clinical development is LX9851 in as of August 2026 for Lexicon Pharmaceuticals (LXRX)?

LX9851 is in an ongoing Phase 1 clinical development program initiated in March 2026 by Novo Nordisk. According to Lexicon, the trial evaluates safety, tolerability, pharmacokinetics and pharmacodynamics in overweight or obese adult subjects and is expected to complete in the first quarter of 2027.

What is LX9851 and how does it work in Lexicon Pharmaceuticals’ obesity pipeline?

LX9851 is a first-in-class, potent and selective oral small molecule inhibitor of ACSL5, a key enzyme in fat metabolism. According to Lexicon, ACSL5 is involved in regulating fat accumulation and energy balance, and LX9851 is being developed by Novo Nordisk for obesity and associated metabolic disorders.

What preclinical results have been reported for LX9851 in combination with semaglutide?

Preclinical in vivo data showed LX9851 plus semaglutide significantly reduced weight, food intake and fat mass versus semaglutide alone. According to Lexicon, LX9851 also mitigated weight regain and improved liver steatosis when introduced after semaglutide discontinuation in these preclinical studies presented at Obesity Week 2024.

How could the Novo Nordisk collaboration around LX9851 impact Lexicon Pharmaceuticals (LXRX) financially?

The collaboration could provide up to $1 billion in potential upfront and milestone payments, plus royalties. According to Lexicon, it has already received $75 million and expects additional milestone and royalty opportunities if LX9851 progresses through development and reaches commercial sales.

Who is responsible for developing and commercializing LX9851 under the Lexicon Pharmaceuticals and Novo Nordisk agreement?

Novo Nordisk holds an exclusive worldwide license to develop, manufacture and commercialize LX9851 in all indications. According to Lexicon, LX9851 was discovered by Lexicon but is now being advanced clinically and commercially by Novo Nordisk under the 2025 exclusive license agreement.