Lexicon Pharmaceuticals Reports Third Quarter 2026 Financial Results and Provides Clinical Updates

February stock sales provided $96.2 million in net proceeds, while quarterly revenue declined and net loss widened.

Rhea-AI Summary

Lexicon Pharmaceuticals (Nasdaq: LXRX) reported third-quarter 2026 revenue of $11.25 million while advancing its heart-disease and diabetes development programs. Revenue fell from $14.182 million a year earlier. Net loss widened to $14.005 million from $12.769 million, although loss per share narrowed to $0.03 from $0.04.

Phase 3 SONATA-HCM completed enrollment with 542 patients, exceeding its planned enrollment; Lexicon expects results in the first quarter of 2027. STENO1 met FDA-agreed patient-exposure and safety-data requirements, with low rates of diabetic ketoacidosis comparable to standard care. Lexicon anticipates resubmitting its ZYNQUISTA approval application in the same quarter. Novo's LX9851 program generated a $10 million milestone in August. Cash and investments reached $183.203 million at September 30, versus $125.230 million including restricted cash at year-end 2025.

19 points · 1 major

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Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.

It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.

Rhea-AI Sentiment measures something else, the tone of the wording.

How the balance worksHow Sentiment works

1 major · 17 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Major pointFebruary 2026 common and preferred stock sales raised $96.2 million in net proceeds. 15% of market cap
• Moderate pointSONATA-HCM completed enrollment with 542 patients, exceeding its planned enrollment.
• Moderate pointSTENO1 met FDA-agreed patient-exposure and safety-data requirements supporting ZYNQUISTA resubmission.
• Moderate point. Forward-looking: it has not happened yet and may not happen.ZYNQUISTA application resubmission is anticipated by Lexicon in the first quarter of 2027.
• Moderate pointLX9851 development generated a $10 million milestone from Novo in August 2026. 1.5% of market cap
• Moderate pointPilavapadin advancement into Phase 3 received no objections from the FDA.
• Moderate pointCash and investments reached $183.203 million, versus $125.230 million including restricted cash at year-end 2025.

12 minor points

• Minor point. Forward-looking: it has not happened yet and may not happen.SONATA-HCM results remain expected by Lexicon in the first quarter of 2027.
• Minor pointSTENO1 showed low diabetic ketoacidosis rates comparable to standard care.
• Minor pointLX9851 remains in Phase 1 development by Novo for overweight or obese people.
• Minor pointSotagliflozin received heart-failure approvals in the United Arab Emirates and Bahrain through licensee Viatris.
• Minor pointPilavapadin preclinical data showed body-weight reductions alone and with semaglutide; Lexicon continues exploring additional indications.
• Minor pointThird-quarter net product revenue rose to $1.181 million from $1.008 million a year earlier.
• Minor pointThird-quarter research and development expense fell to $16.204 million from $18.757 million a year earlier.
• Minor pointThird-quarter interest and other expense fell to $1.132 million from $2.155 million a year earlier.
• Minor pointThird-quarter interest and other income rose to $1.622 million from $1.573 million a year earlier.
• Minor pointNine-month research and development expense fell to $46.403 million from $49.806 million a year earlier.
• Minor pointNine-month selling, general and administrative expense fell to $28.446 million from $28.562 million a year earlier.
• Minor pointNine-month interest and other expense fell to $5.331 million from $6.308 million a year earlier.

Negative

• Major pointFebruary financing issued common and preferred stock, diluting existing holders.
• Moderate pointThird-quarter revenue fell to $11.250 million from $14.182 million a year earlier.
• Moderate pointThird-quarter net loss widened to $14.005 million; loss per share narrowed to $0.03 from $0.04.
• Moderate pointThird-quarter operating loss widened to $14.495 million from $12.187 million a year earlier.
• Moderate pointNine-month revenue fell to $33.044 million from $44.310 million a year earlier.
• Moderate pointNine-month net loss widened to $46.823 million, or $0.11 per share, from $34.811 million, or $0.10.
• Moderate pointNine-month operating loss widened to $42.031 million from $34.131 million a year earlier.
• Moderate pointEarly debt extinguishment generated a $4.349 million loss in the first nine months of 2026.

9 minor points

• Minor pointThird-quarter licensing and milestone revenue fell to $10 million from $13.154 million a year earlier.
• Minor pointThird-quarter selling, general and administrative expense rose to $9.462 million from $7.602 million a year earlier.
• Minor pointThird-quarter cost of sales rose to $79,000 from $10,000 a year earlier.
• Minor pointThird-quarter weighted-average common shares increased to 444.956 million from 363.399 million a year earlier.
• Minor pointNine-month net product revenue fell to $2.951 million from $3.592 million a year earlier.
• Minor pointNine-month licensing and milestone revenue fell to $30 million from $40.698 million a year earlier.
• Minor pointNine-month cost of sales rose to $226,000 from $73,000 a year earlier.
• Minor pointNine-month interest and other income fell to $4.888 million from $5.628 million a year earlier.
• Minor pointViatris heart-failure applications remain pending regulatory approval in additional markets.

News Explained

Lexicon reports $75 million earned within a Novo collaboration offering up to $1 billion in potential milestones.

In its third-quarter update, Lexicon reports earning $75 million under its Novo collaboration, against up to $1 billion in potential milestone payments.

The release also reports that the FDA raised no objections to advancing pilavapadin into Phase 3 for diabetic peripheral neuropathic pain, and describes a proposed design of two placebo-controlled, 12-week studies comparing 10 mg daily with placebo.

Key Figures

Total revenue: $11.3 million Net loss: $14.0 million Cash and investments: $183.2 million +5 more

Total revenue

$11.3 million

Third quarter 2026; versus $14.2 million in third quarter 2025

Net loss

$14.0 million

Third quarter 2026; versus $12.8 million in third quarter 2025

Cash and investments

$183.2 million

As of September 30, 2026; versus $125.2 million as of December 31, 2025

SONATA-HCM enrollment

542 patients

Phase 3 study; enrollment substantially exceeded plan

SONATA-HCM topline data

First quarter of 2027

Expected timing

ZYNQUISTA NDA resubmission

First quarter of 2027

Anticipated timing

Novo milestone payment

$10 million

Third milestone payment earned in 2026

LX9851 milestones earned

$75 million of $1 billion

Earned under the collaboration; $1 billion in potential milestone payments

Previous Earnings Reports

2 past events · Latest: Aug 06

Same Type 2 events

1. Aug 06

   quarterly earnings

   24h Move

   -3.7%

   Revenue declined year over year and net loss widened; cash and investments were reported at $190.6 million.

2. Nov 06

   quarterly earnings

   24h Move

   +3.6%

   Revenue rose on Novo licensing revenue, while net loss narrowed year over year.

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

Key Terms

sglt1, nda, dka, kccq-css, +1 more

5 terms

sglt1 medical

"types 1 and 2 (SGLT1 and SGLT2)"

SGLT1 is a protein in the body’s lining of the gut and some kidney cells that acts like a doorway, moving sugar from the digestive tract into cells. It matters to investors because drugs that block or modify this doorway can change how the body handles blood sugar, appetite and fluid balance, so successes or setbacks in SGLT1-targeted therapies can affect drug sales, trial outcomes, regulatory risk and long-term company value.

nda regulatory

"support resubmission of the Company's New Drug Application (NDA)"

An NDA, or nondisclosure agreement, is a legal contract that keeps certain information private between parties. It’s like a promise not to share sensitive details, helping protect business ideas, strategies, or data from being leaked or used without permission. For investors, NDAs help ensure that confidential information remains secure, enabling trust and open communication during business discussions.

dka medical

"low rates of DKA comparable to standard of care"

Diabetic ketoacidosis (DKA) is a serious, potentially life‑threatening complication of diabetes in which the body, lacking enough insulin, breaks down fat for fuel and produces acidic chemicals called ketones, causing dehydration, heavy breathing, confusion and other acute symptoms. For investors, DKA is important because its frequency and management affect demand for diabetes drugs and devices, hospital and treatment costs, clinical trial safety outcomes, and regulatory or legal risks—think of it as an engine overheating that signals both health and product performance issues.

kccq-css medical

"a mean baseline KCCQ-CSS of 59"

The KCCQ-CSS is a patient-reported score that summarizes how heart failure affects a person’s symptoms and physical abilities, producing a 0–100 rating where higher numbers mean better health. Investors should care because this score is commonly used in clinical trials and regulatory reviews to show whether a treatment genuinely improves patients’ day-to-day wellbeing—think of it like a customer satisfaction rating that can influence approval, reimbursement and market uptake.

acsl5 medical

"inhibitor of acyl-CoA synthetase 5 (ACSL5)"

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.

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

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Phase 3 SONATA-HCM study substantially overenrolled; top-line data expected Q1 2027

Positive STENO1 safety data strengthens benefit-risk profile for ZYNQUISTA® NDA resubmission

Phase 1 clinical development of LX9851 ongoing by Novo

Conference call and webcast at 8:30 am ET  

THE WOODLANDS, Texas, Nov. 05, 2026 (GLOBE NEWSWIRE) -- Lexicon Pharmaceuticals, Inc. (Nasdaq: LXRX), a leading cardiometabolic biopharmaceutical company, today reported financial results for the three months ended September 30, 2026, and provided an update on key corporate milestones and accomplishments. 

“This quarter brought Lexicon into sharper focus as a cardiometabolic company and has positioned us to approach 2027 with strong momentum and multiple near-term potential catalysts and paths to value creation,” said Mike Exton, Ph.D., Lexicon’s chief executive officer and director. “Most notably, we completed enrollment in SONATA-HCM and are encouraged by the overall baseline characteristics of the study population, which we believe reflect a broad and clinically relevant spectrum of patients with symptomatic HCM. Together with our planned ZYNQUISTA NDA resubmission and the continued advancement of LX9851 by Novo, these achievements have positioned Lexicon for what we believe will be an important and catalyst-rich period for the company."

"As we prepare for several important milestones across our portfolio, we remain focused on investing prudently to support execution and position the Company for long-term success,” said Scott Coiante, Lexicon’s chief financial officer. “We believe our current financial position enables us to advance our key strategic priorities, including SONATA-HCM and the planned ZYNQUISTA NDA resubmission, while continuing to evaluate opportunities to unlock additional value across the portfolio."

Third Quarter 2026 Business and Pipeline Highlights 

Sotagliflozin
Sotagliflozin is a unique oral dual inhibitor of sodium-glucose cotransporter types 1 and 2 (SGLT1 and SGLT2) and has been studied in approximately 20,000 patients across multiple cardiometabolic indications. Sotagliflozin is commercially available in the U.S. for heart failure as INPEFA^®.

Hypertrophic Cardiomyopathy (HCM)

• Enrollment has been completed in SONATA-HCM, a pivotal Phase 3 placebo-controlled study in patients with symptomatic obstructive (oHCM) and non-obstructive (nHCM) hypertrophic cardiomyopathy. The trial enrolled a total of 542 patients across both nHCM and oHCM, substantially exceeding its planned enrollment.
• Baseline patient characteristics included demographics generally consistent with prior HCM studies of other agents, meaningful representation of both nHCM and oHCM patients and a mean baseline KCCQ-CSS of 59, reflecting considerable symptom burden at study entry. The primary efficacy endpoint will assess improvement in symptoms for the entire population.
• Lexicon continues to expect topline results in the first quarter of 2027.
• Two studies of sotagliflozin will be presented at the 2026 American Heart Association (AHA) Scientific Sessions in Chicago, November 6–9, providing new insights into its potential effects on thrombus formation as well as myocardial function in HCM, including findings from living human HCM heart tissue.

Type 1 Diabetes (T1D) (ZYNQUISTA^®)

• Lexicon remains focused on bringing ZYNQUISTA to market for glycemic control in adults with T1D, a patient population for which there are no treatment options beyond insulin.
• STENO1, a third-party funded, investigator-initiated study of sotagliflozin being conducted by the STENO Diabetes Center (Denmark) has achieved the patient exposure and safety data requirements agreed upon with the U.S. Food and Drug Administration (FDA) to support resubmission of the Company's New Drug Application (NDA).
• Positive safety data showed low rates of DKA comparable to standard of care in STENO1, complementing the efficacy results in the Phase 3 inTandem program.
• Data preparation and administrative work is now being completed to support a high-quality NDA resubmission, anticipated in the first quarter of 2027.

Viatris License for All Indications Ex-U.S. and Ex-Europe

• Lexicon continues to support licensee Viatris in its regulatory filings and commercial strategy for sotagliflozin outside of the U.S. and Europe.
• Viatris has obtained regulatory approval for heart failure in the United Arab Emirates and Bahrain and has submitted applications for regulatory approval for heart failure in several other markets, including Saudi Arabia, Canada, Australia, New Zealand, Mexico, Singapore, Oman, Thailand, Turkey, Malaysia, Philippines and Kuwait.

LX9851 
LX9851 is a first-in-class, non-incretin, oral, small molecule inhibitor of acyl-CoA synthetase 5 (ACSL5) in development by licensee Novo for obesity and associated metabolic disorders.

Obesity and Associated Cardiometabolic Disorders

• In March 2026, Novo initiated a Phase 1 study investigating single and multiple ascending doses of LX9851 compared to placebo in overweight or obese people.
• In August 2026, Lexicon earned a third $10 million milestone payment in 2026 from Novo following the achievement of a key patient dosing milestone.
• 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 the collaboration. Lexicon is also eligible for tiered royalties on net sales of LX9851.
  

Pilavapadin (LX9211)

Discovered using Lexicon’s unique approach to gene science and target identification, pilavapadin is a potent, once-daily, orally delivered, selective, investigational small molecule inhibitor of adapter protein-2–associated kinase 1 (AAK1). Lexicon identified AAK1 as a promising approach for the treatment of neuropathic pain and is exploring its potential in other indications including obesity.   

Diabetic Peripheral Neuropathic Pain (DPNP)

• Pilavapadin has the potential to be the first oral, non-opioid drug therapy approved in neuropathic pain in more than 20 years.
• Following the results of the Phase 2 PROGRESS study in 2025, the FDA has raised no objections to the advancement of pilavapadin into Phase 3 development, which would include two placebo-controlled, 12-week, two arm registrational studies comparing the 10 mg daily dose to placebo. The primary endpoint of the Phase 3 studies would be the change in average daily pain score (ADPS) from baseline to Week 12.

Obesity and Additional Indications

• Lexicon continues to explore additional indications for pilavapadin and recently generated preclinical data that demonstrates significant reduction in body weight from baseline when administered both as monotherapy and in combination with semaglutide.
• Lexicon continues to explore strategic opportunities to maximize the global potential of this investigative therapy.

Third Quarter 2026 Financial Highlights

Revenues: Total revenues were $11.3 million for the third quarter of 2026, consisting primarily of $10.0 million of development milestone revenue from our license agreement with Novo and net sales of INPEFA of $1.2 million. Total revenues for the third quarter of 2025 were $14.2 million, consisting of $13.2 million of licensing revenue recognized from our license agreement with Novo and net sales of INPEFA of $1.0 million.

Research and Development (R&D) Expenses: Research and development expenses for the third quarter of 2026 decreased to $16.2 million from $18.8 million for the corresponding period in 2025, reflecting lower external research expenses due to completion of our PROGRESS Phase 2b clinical trial in 2025 partially offset by higher SONATA-HCM Phase 3 clinical trial expense in 2026.

Selling, General and Administrative (SG&A) Expenses: Selling, general and administrative expenses for the third quarter of 2026 increased to $9.5 million from $7.6 million for the corresponding period in 2025. The increase in 2026 reflects higher employee benefit costs and pre-commercialization expenses.

Net Loss: Net loss for the third quarter of 2026 was $14.0 million, or $0.03 per share, as compared to a net loss of $12.8 million, or $0.04 per share, in the corresponding period in 2025. For the third quarters of 2026 and 2025, net loss included non-cash, stock-based compensation expense of $3.4 million for each of the periods.

Cash, Investments and Restricted Cash: As of September 30, 2026, Lexicon had $183.2 million in cash and investments, as compared to $125.2 million in cash, investments, and restricted cash as of December 31, 2025. The increase in cash and investments primarily reflects net proceeds of $96.2 million from the sale of common and preferred stock in February 2026 partially offset by net cash used in operations.

Conference Call and Webcast Information  

Lexicon management will hold a live conference call and webcast today at 8:30 am ET / 7:30 am CT to review its financial and operating results and to provide a general business update. A live audio webcast of the call can be accessed by visiting the Events page of the Company’s investor relations website at https://investors.lexpharma.com/. Participants who wish to ask a question may register here to receive dial-in numbers and a unique pin to join the call. An archived version of the webcast will be available on the website for 30 days. 

About Lexicon Pharmaceuticals 
Lexicon Pharmaceuticals is a biopharmaceutical company pursuing novel medicines for patients with serious cardiometabolic diseases. Building on a proven legacy in genetic target discovery, Lexicon is advancing a clinical pipeline in areas of significant and often underserved need, with programs in hypertrophic cardiomyopathy (HCM), type 1 diabetes (T1D), obesity and other related metabolic conditions. Lexicon is committed to developing differentiated therapies that can be integrated broadly into clinical practice, with the goal of expanding treatment options for patients. Its capabilities extend from early-stage target discovery through clinical development and commercialization, strategically paired with high-impact collaborations to maximize the global reach of its medicines.

For additional information, please visit www.lexpharma.com.

Safe Harbor Statement
This press release contains “forward-looking statements,” including statements relating to Lexicon’s financial position and long-term outlook on its business, including the commercialization of its approved products and the clinical development of regulatory filings for, and potential therapeutic and commercial potential of its other drug candidates. In addition, this press release also contains forward looking statements relating to Lexicon’s growth and future operating results, discovery, development and commercialization of products, 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, successfully commercialize its approved products, successfully 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 approved products and other 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, as 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

Lexicon Pharmaceuticals, Inc.
Selected Financial Data
Consolidated Statements of Operations Data		Three Months Ended September 30,								Nine Months Ended September 30,
(In thousands, except per share data)			2026				2025				2026				2025
		(Unaudited)								(Unaudited)
Revenues:
Net product revenue		$	1,181			$	1,008			$	2,951			$	3,592
Licensing and milestone revenue			10,000				13,154				30,000				40,698
Royalties and other revenue			69				20				93				20
Total revenues			11,250				14,182				33,044				44,310
Operating expenses:
Cost of sales			79				10				226				73
Research and development, including stock-based
compensation of $1,424, $1,832, $4,177 and $5,026, respectively			16,204				18,757				46,403				49,806
Selling, general and administrative, including stock-based
compensation of $1,959, $1,612, $5,620 and $4,656, respectively			9,462				7,602				28,446				28,562
Total operating expenses			25,745				26,369				75,075				78,441
Loss from operations			(14,495	)			(12,187	)			(42,031	)			(34,131	)
Interest and other expense			(1,132	)			(2,155	)			(5,331	)			(6,308	)
Interest and other income			1,622				1,573				4,888				5,628
Loss on early extinguishment of debt			-				-				(4,349	)			-
Net loss		$	(14,005	)		$	(12,769	)		$	(46,823	)		$	(34,811	)
Net loss per common share, basic and diluted		$	(0.03	)		$	(0.04	)		$	(0.11	)		$	(0.10	)
Weighted average common shares outstanding, basic and diluted			444,956				363,399				427,780				362,927
		As of				As of
Consolidated Balance Sheet Data		September 30, 2026				December 31, 2025
(In thousands)
Cash and investments		$	183,203			$	96,230
Restricted cash			—				29,000
Property and equipment, net			1,556				1,863
Goodwill			44,543				44,543
Total assets			242,021				184,987
Current portion of long-term debt			—				4,595
Long-term debt, net			51,894				49,408
Accumulated deficit			(2,064,406	)			(2,017,583	)
Total stockholders' equity			163,845				107,538

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

When does Lexicon expect SONATA-HCM results, and what will the trial measure?

Lexicon expects SONATA-HCM results in the first quarter of 2027. The placebo-controlled Phase 3 trial enrolled 542 patients with symptomatic obstructive or non-obstructive hypertrophic cardiomyopathy, a heart-muscle condition. Its primary efficacy measure assesses symptom improvement across the entire study population.

What were Lexicon's third-quarter 2026 revenue and net loss?

Lexicon reported $11.250 million in revenue and a $14.005 million net loss, or $0.03 per share. A year earlier, revenue was $14.182 million and net loss was $12.769 million, or $0.04 per share.

What would Lexicon's pilavapadin Phase 3 program involve?

The proposed pilavapadin Phase 3 program would include two placebo-controlled, 12-week studies comparing a 10 mg daily dose with placebo for diabetic peripheral neuropathic pain. The primary measure would be the change in average daily pain score from baseline to Week 12. The FDA has raised no objections to advancement into Phase 3.

What payments could Lexicon receive under its Novo LX9851 collaboration?

Lexicon has earned $75 million of the $1 billion in potential upfront, development, regulatory and commercial milestone payments under the collaboration. It is also eligible for tiered royalties on LX9851 net sales. The August 2026 payment was its third $10 million milestone from Novo in 2026.