Lexicon Pharma (Nasdaq: LXRX) swings to $31.8M Q2 2026 loss

Rhea-AI Filing Summary

Lexicon Pharmaceuticals reported second quarter 2026 results, with total revenues of $0.7 million, all from INPEFA net product sales, compared with $28.9 million a year earlier that included substantial licensing revenue from Novo Nordisk. Research and development expenses rose to $17.4 million and selling, general and administrative expenses to $9.8 million, resulting in a net loss of $31.8 million, or $0.07 per share, versus net income of $3.3 million in the prior-year quarter.

Cash and investments were $190.6 million as of June 30, 2026, supported by $96.2 million of equity proceeds in February and a new $100 million loan facility with Hercules Capital, of which $55 million was drawn to refinance previous debt. Enrollment has been completed in the pivotal Phase 3 SONATA-HCM trial of sotagliflozin, with topline data expected in the first quarter of 2027, while an NDA resubmission for ZYNQUISTA in type 1 diabetes is anticipated in the fourth quarter of 2026. Novo Nordisk advanced LX9851 into Phase 1 for obesity, and Lexicon highlighted the potential for up to $1 billion in milestones and tiered royalties under that license.

Positive

• None.

Negative

• Net loss of $31.8 million in Q2 2026, versus $3.3 million net income in Q2 2025, driven by the absence of prior-year licensing revenue and higher operating expenses.

Filing Explained

Beyond the $55 million funded at closing, the Hercules facility provides a $20 million tranche available at Lexicon’s option after specified clinical, regulatory, financial, and timing conditions, plus a $25 million tranche requiring Hercules’ consent and meeting timing requirements; these amounts are borrowing capacity, not additional debt already funded.

8-K Event Classification

2 items: 2.02, 9.01

2 items

Item 2.02 Results of Operations and Financial Condition Financial

Disclosure of earnings results, typically an earnings press release or preliminary financials.

Item 9.01 Financial Statements and Exhibits Exhibits

Financial statements, pro forma financial information, and exhibit attachments filed with this report.

Key Figures

Total revenues Q2 2026: $0.7 million Total revenues Q2 2025: $28.9 million Net income (loss) Q2 2026: $31.8 million net loss +5 more

8 metrics

Total revenues Q2 2026 $0.7 million Three months ended June 30, 2026; net product revenue from INPEFA.

Total revenues Q2 2025 $28.9 million Three months ended June 30, 2025; included $27.6 million licensing revenue from Novo Nordisk.

Net income (loss) Q2 2026 $31.8 million net loss Three months ended June 30, 2026; $(0.07) per basic and diluted share.

Cash and investments $190.6 million Cash and investments as of June 30, 2026.

Equity financing proceeds $96.2 million Net proceeds from sale of common and preferred stock in February 2026.

Hercules Capital loan facility $100 million Total size of loan facility entered into in May 2026; $55 million funded at closing.

SONATA-HCM enrollment Over 500 patients Pivotal Phase 3 HCM trial enrollment completed, exceeding 500-patient target.

Potential LX9851 milestones $1 billion Aggregate potential upfront, development, regulatory and sales milestone payments under Novo Nordisk license.

Key Terms

hypertrophic cardiomyopathy (HCM), New Drug Application (NDA), loss on early extinguishment of debt, accumulated deficit, +2 more

6 terms

hypertrophic cardiomyopathy (HCM) medical

"hypertrophic cardiomyopathy (HCM), obesity and metabolic disorders, and other"

Hypertrophic cardiomyopathy (HCM) is a condition in which the heart muscle becomes abnormally thick, making it harder for the heart to pump blood and sometimes narrowing the flow pathway—think of a pump with walls that have thickened inward. It matters to investors because HCM drives demand for diagnostics, long-term therapies, devices and clinical trials, affects health-care costs and patient outcomes, and can influence regulatory approvals and market opportunities for treatments.

New Drug Application (NDA) regulatory

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

A new drug application (NDA) is a formal request submitted to regulatory authorities to gain approval for a new medication to be sold and used by the public. It is a comprehensive review process that examines the drug’s safety, effectiveness, and manufacturing quality. For investors, an NDA approval can signal a potential breakthrough product and influence a company's stock value.

loss on early extinguishment of debt financial

"Loss on early extinguishment of debt | $(4,349) |"

A loss on early extinguishment of debt is the one-time accounting charge a company records when it pays off a loan or bond before the agreed date and pays more (fees or penalties) than the remaining balance. Think of it like breaking a rental lease early and paying a penalty; it reduces reported profit and uses cash now. Investors watch it because it can lower short-term earnings, affect cash reserves, and signal refinancing or financial stress.

accumulated deficit financial

"Accumulated deficit | (2,050,401) | (2,017,583)"

Accumulated deficit is the running total of a company’s past net losses minus any profits, showing how much the business has eaten into its own funds over time—think of it like a bank account that’s been overdrawn by repeated shortfalls. It matters to investors because a large accumulated deficit reduces the cushion that protects owners and creditors, can limit dividends or borrowing, and signals how much funding the company may need to reach profitability.

tiered royalties financial

"Lexicon is also eligible for tiered royalties on net sales of LX9851."

Tiered royalties are a payment structure where the percentage of earnings paid as royalties changes based on different levels of sales or production. For example, a company might pay a smaller percentage on initial sales and a higher percentage as sales increase beyond certain points. This system encourages higher sales by adjusting payments, making it important for investors to understand how revenue sharing may vary as a product or project grows.

investigator-initiated study medical

"STENO1, a third-party funded, investigator-initiated study of sotagliflozin"

An investigator-initiated study is a clinical or observational research project designed and run by independent researchers or clinicians rather than a company that makes the drug or device being tested. For investors, these studies act like an independent test drive: they can produce credible, additional evidence about safety, effectiveness or new uses that may change market expectations, influence prescribing, regulatory decisions, or the commercial value of a product.

Earnings Snapshot

Total revenues: $0.7 million

Three months ended June 30, 2026

Total revenues $0.7 million Compared with $28.9 million in the three months ended June 30, 2025.

Net income (loss) $(31.8) million Compared with net income of $3.3 million in the prior-year quarter.

Research and development expenses $17.4 million Up from $15.7 million in the three months ended June 30, 2025.

Selling, general and administrative expenses $9.8 million Up from $9.4 million in the three months ended June 30, 2025.

Cash and investments $190.6 million Up from $125.2 million in cash, investments and restricted cash as of December 31, 2025.

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

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FAQ

What were Lexicon Pharmaceuticals (LXRX) revenues in Q2 2026?

Lexicon reported Q2 2026 revenues of $0.7 million, all from INPEFA net product sales. This compares with $28.9 million in Q2 2025, when results included $27.6 million of licensing revenue from its Novo Nordisk agreement.

What was Lexicon Pharmaceuticals (LXRX) net income or loss for Q2 2026?

For Q2 2026, Lexicon recorded a net loss of $31.8 million, or $0.07 per share. In the prior-year quarter, the company reported net income of $3.3 million, or $0.01 per share, benefiting from significant one-time licensing revenue.

How much cash and debt did Lexicon (LXRX) have as of June 30, 2026?

As of June 30, 2026, Lexicon held $190.6 million in cash and investments. Long-term debt, net, was $51.4 million, following a new $100 million Hercules Capital loan facility, with $55 million drawn to repay a prior Oxford Finance loan.

What is the status of Lexicon’s SONATA-HCM Phase 3 trial as reported in this 8-K?

Lexicon has completed enrollment in the pivotal Phase 3 SONATA-HCM study of sotagliflozin, substantially exceeding its 500-patient target across non-obstructive and obstructive HCM. The company continues to expect topline data in the first quarter of 2027.

When does Lexicon (LXRX) expect to resubmit the ZYNQUISTA NDA for type 1 diabetes?

Lexicon anticipates resubmitting the ZYNQUISTA New Drug Application for adult type 1 diabetes in the fourth quarter of 2026. The resubmission is supported by safety data from the STENO1 investigator-initiated study being conducted at STENO Diabetes Center in Denmark.

What are the key financial terms of Lexicon’s LX9851 license with Novo Nordisk?

Under its exclusive LX9851 license, Lexicon has received a $45 million upfront payment and two $10 million clinical development milestones. It is eligible for a third $10 million milestone as early as later 2026 and up to $1 billion in aggregate milestones plus tiered royalties.

0001062822FALSE00010628222026-08-062026-08-06

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

__________________

FORM 8-K

__________________

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): August 6, 2026

Lexicon Pharmaceuticals, Inc.

(Exact name of registrant as specified in its charter)

Delaware			000-30111			76-0474169
(State or other jurisdiction of incorporation or organization)			(Commission File Number)			(I.R.S. Employer Identification Number)

2445 Technology Forest Blvd., 11th Floor

The Woodlands, Texas 77381

(Address of principal executive offices and Zip Code)

(281) 863-3000

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class			Trading Symbol(s)			Name of each exchange on which registered
Common Stock, par value $0.001			LXRX			The Nasdaq Capital Market

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligations of the registrant under any of the following provisions:

☐    Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐    Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐    Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐    Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR § 230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR § 240.12b-2).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02     Results of Operation and Financial Condition

On August 6, 2026, we issued a press release to report our financial results for the quarter ended June 30, 2026. A copy of the press release is attached to this current report on Form 8-K as Exhibit 99.1.

The information in this Form 8-K and the Exhibit attached to this Form 8-K shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act, except as expressly set forth by specific reference in such a filing.

Item 9.01    Financial Statements and Exhibits

(d)    Exhibits

Exhibit No.						Description
99.1			—			Press Release of Lexicon Pharmaceuticals, Inc. dated August 6, 2026
EX-104			—			Cover Page Interactive Data File (embedded within the Inline XBRL document)

Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

			Lexicon Pharmaceuticals, Inc.
Date: August 6, 2026			By:			/s/ Brian T. Crum
						Brian T. Crum
						Senior Vice President and General Counsel

Exhibit 99.1

LEXICON PHARMACEUTICALS REPORTS SECOND QUARTER 2026

FINANCIAL RESULTS AND PROVIDES CLINICAL UPDATES

Enrollment complete in Phase 3 SONATA-HCM study; top-line data expected Q1 2027

NDA resubmission activities for ZYNQUISTA® in type 1 diabetes nearing completion

Phase 1 clinical development of LX9851 ongoing by Novo Nordisk

Conference call and webcast at 8:30 am ET

The Woodlands, Texas, August 6, 2026 – Lexicon Pharmaceuticals, Inc. (Nasdaq: LXRX), today reported financial results for the three months ended June 30, 2026, and provided an update on key corporate milestones and accomplishments.

“Lexicon continued to make strong progress during the second quarter, with the refinement of our strategy and sharpening of our focus beginning to bear fruit across our business,” said Mike Exton, Ph.D., Lexicon’s chief executive officer and director. “Among all the accomplishments, I’m particularly pleased that we have completed enrollment of our SONATA-HCM study on time, reflecting strong clinical interest for a novel class of medicine to treat HCM. Overall, I could not be more confident in how these opportunities are poised to shape the company over the coming months.”

“We remain very focused on disciplined, targeted capital allocation as we continue to advance our clinical programs,” said Scott Coiante, Lexicon’s chief financial officer. “With early commercial planning now underway for our late-state pipeline, we are committed to maximizing the value of these opportunities to create long-term shareholder value.”

Second Quarter 2026 Business and Pipeline Highlights

Cardiometabolic

Sotagliflozin

Sotagliflozin is a unique oral 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, substantially exceeding its enrollment target of 500 patients across both non-obstructive (nHCM) or obstructive HCM (oHCM).

•The primary efficacy endpoint will assess improvement in symptoms for the entire population (nHCM and oHCM). The final study population included a substantial majority of patients with nHCM, providing a robust opportunity to evaluate sotagliflozin in a patient group for whom effective treatment options remain limited, as well as a meaningful cohort of patients with oHCM.

•Lexicon continues to expect topline results in the first quarter of 2027.

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) is approaching the patient exposure and safety data requirements previously identified by the U.S. Food and Drug Administration (FDA) as being adequate to support a resubmission of the company's New Drug Application (NDA), which Lexicon anticipates will occur in the fourth quarter of 2026 based on current estimated timing of data collection.

•The safety data received to date from this open-label trial continue to support the resubmission.

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

•Lexicon continues to support licensee Viatris in its regulatory filing 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. Viatris anticipates regulatory decisions in Australia and Canada and regulatory submissions in other markets in 2026.

LX9851

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

Obesity and Associated Cardiometabolic Disorders

•In March 2026, Novo Nordisk initiated a Phase 1 study investigating single and multiple ascending doses of LX9851 compared to placebo in overweight or obese people. The Phase 1 program is expected to be completed in the first quarter of 2027.

•Under the terms of Lexicon’s exclusive license agreement with Novo Nordisk, Lexicon received an upfront payment of $45 million and two $10 million payments related to clinical development. Lexicon is eligible to receive a third $10 million milestone payment as early as later this year and up to an aggregate of $1 billion in upfront and development, regulatory and sales milestone payments. 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 AAK1. Lexicon identified AAK1 in its target discovery efforts as a promising approach for the treatment of neuropathic pain and is exploring its potential in other indications.

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.

•Lexicon continues to explore strategic opportunities to maximize the global potential of this investigative therapy.

Second Quarter 2026 Financial Highlights

Revenues: Total revenues were $0.7 million for the second quarter of 2026, consisting of net sales of INPEFA.

Total revenues for the second quarter of 2025 were $28.9 million, consisting of $27.6 million in licensing revenue recognized from the Novo Nordisk licensing agreement and $1.3 million from net sales of INPEFA.

Research and Development (R&D) Expenses: Research and development expenses for the second quarter of 2026 increased to $17.4 million from $15.7 million for the corresponding period in 2025, reflecting higher external research expense in 2026 related to the Company’s ongoing SONATA-HCM Phase 3 clinical trial.

Selling, General and Administrative (SG&A) Expenses: Selling, general and administrative expenses for the second quarter of 2026 increased to $9.8 million from $9.4 million for the corresponding period in 2025. The increase in 2026 reflects higher professional and consulting costs.

Net Loss: Net loss for the second quarter of 2026 was $31.8 million, or $0.07 per share, as compared to net income of $3.3 million, or $0.01 per share, in the corresponding period in 2025. Net loss for the second quarter of 2026 and net income for the second quarter of 2025 included non-cash, stock-based compensation expense of $3.3 million and $3.2 million, respectively.

Cash, Investments and Restricted Cash: As of June 30, 2026, Lexicon had $190.6 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 reflects net proceeds of $96.2 million from the sale of common and preferred stock in February 2026.

Hercules Capital Loan Facility

In May 2026, Lexicon entered into a $100 million loan facility with Hercules Capital. An initial $55 million tranche was funded at closing and used to repay Lexicon’s previous loan facility with Oxford Finance. The second $20 million tranche is available for draw at Lexicon’s option subject to the achievement of certain clinical, regulatory and financial milestones and specified timing requirements. The third $25 million tranche is available for draw at Lexicon’s option subject to Hercules’ consent and specified timing requirements.

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 join by phone at 800-715-9871 and use passcode 9826247. An archived version of the webcast will be available on the website for 30 days.

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 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.

Lexicon Pharmaceuticals, Inc.
Selected Financial Data
Consolidated Statements of Operations Data						Three Months Ended June 30,												Six Months Ended June 30,
(In thousands, except per share data)						2026						2025						2026						2025
						(Unaudited)												(Unaudited)
Revenues:
Net product revenue						$	680					$	1,322					$	1,770					$	2,584
Licensing and milestone revenue						—						27,544						20,000						27,544
Royalties and other revenue						12						—						24						—
Total revenues						692						28,866						21,794						30,128
Operating expenses:
Cost of sales						39						33						147						63
Research and development, including stock-based
compensation of $1,384, $1,620, $2,753 and $3,194, respectively						17,443						15,747						30,199						31,050
Selling, general and administrative, including stock-based
compensation of $1,952, $1,575, $3,661 and $3,044, respectively						9,750						9,350						18,984						20,958
Total operating expenses.						27,232						25,130						49,330						52,071
Income (loss) from operations						(26,540)						3,736						(27,536)						(21,943)
Interest and other expense						(2,609)						(2,318)						(4,199)						(4,153)
Interest and other income						1,723						1,834						3,266						4,053
Loss on early extinguishment of debt						$(4,349)						$—						$(4,349)						$—
Net income (loss)						$	(31,775)					$	3,252					$	(32,818)					$	(22,043)
Net income (loss) per common share, basic						$	(0.07)					$	0.01					$	(0.08)					$	(0.06)
Net income (loss) per common share, diluted						$	(0.07)					$	0.01					$	(0.08)					$	(0.06)
Weighted average common shares outstanding, basic						437,653						363,294						419,050						362,687
Weighted average common shares outstanding, diluted						437,653						363,570						419,050						362,687
						As of						As of
Consolidated Balance Sheet Data						June 30, 2026						December 31, 2025
(In thousands)
Cash and investments						$	190,610					$	96,230
Restricted cash						—						29,000
Property and equipment, net						1,651						1,863
Goodwill						44,543						44,543
Total assets						250,060						184,987
Current portion of long-term debt						—						4,595
Long-term debt, net						51,437						49,408
Accumulated deficit						(2,050,401)						(2,017,583)
Total stockholders' equity						174,525						107,538

For Media Inquiries:

Dave Belian

Lexicon Pharmaceuticals, Inc.

lexinvest@lexpharma.com

For Investor Inquiries:

Lisa DeFrancesco

Lexicon Pharmaceuticals, Inc.

lexinvest@lexpharma.com

Filing Exhibits & Attachments

4 documents

Press Releases

• EX-99.1 EX-99.1 85.6 KB

Other Documents

• EX-101 XBRL TAXONOMY EXTENSION SCHEMA DOCUMENT 1.7 KB
• EX-101 XBRL TAXONOMY EXTENSION LABEL LINKBASE DOCUMENT 21.1 KB
• EX-101 XBRL TAXONOMY EXTENSION PRESENTATION LINKBASE DOCUMENT 12.2 KB