Lexicon Pharmaceuticals Inc. Common Stock (LXRX)

FairStock Score: 39/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for a business I can understand, a durable competitive advantage, and financial strength. Lexicon is a small biopharma with 81 employees, focused on sotagliflozin brands. The story may be promising, but the numbers are not. In fiscal year 2023, revenue was $1.1M and net loss was $177.1M. In fiscal year 2024, revenue was $6.0M and net loss was $200.4M. In fiscal year 2025, revenue improved to $49.8M, but net loss was still $50.3M. The latest filings show how lumpy it is: in fiscal Q1 2026, the quarter ended 2026-03-31, revenue was $21.1M and net loss was $1.0M; then in fiscal Q2 2026, the quarter ended 2026-06-30, revenue fell to $692,000 and net loss was $31.8M. Trailing free cash flow is -$65.0M, and the FCF yield is -9.1% per FairStock calculations. At the 2026-10-13 close of $1.61, market cap is $716.4M, P/B is 4.13, ROE is -40.21%, and ROCE is -14.32% per FairStock. Piotroski is 1/9 and Altman Z is -5.26, which point to financial distress. Debt/equity of 0.34 is not crushing, but the cash burn is. There is no Peter Lynch category because the company has lost money in each of the last four years. A drug pipeline can be a moat only if it produces durable cash; today it does not. The price depends on future regulatory or commercial success, not on current earnings or assets.

In plain English: Lexicon Pharmaceuticals is a small biopharmaceutical company that makes and develops medicines for diabetes, heart, and related conditions. The business looks weak today: it is losing money, cash flow is negative, and sales have been very uneven. At $1.61 a share, the price looks expensive compared with current sales and profits, though it may reflect hope for future drugs.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer