Lexicon Pharmaceuticals, Inc.: Q1 FY2026 earnings call

What management said about Q1 FY2026, from the documents filed with the SEC on 7 May 2026: press release. Guidance figures: 1 new, 6 kept. The quarter’s numbers.

Key takeaways

Revenue rose on Novo Nordisk milestone: Total revenue was $21.1 million, including $20.0 million of Novo Nordisk development milestone revenue, compared with $1.3 million in the first quarter of 2025. Source
Net loss narrowed to $1.0 million: The net loss was $1.0 million, or less than $0.01 per share, against a net loss of $25.3 million, or $0.07 per share, in the first quarter of 2025. Source
SONATA-HCM enrollment nearing completion: Enrollment in the pivotal Phase 3 SONATA-HCM study, targeted at 500 patients, is expected to complete in mid-2026, with topline results in Q1 2027. Source
ZYNQUISTA resubmission timed for mid-2026: The type 1 diabetes NDA resubmission is anticipated in mid-2026, with approval possible this year, subject to STENO1 data meeting FDA requirements. Source
Novo Nordisk started LX9851 Phase 1: Novo Nordisk started the Phase 1 study of LX9851 in March 2026, which is expected to complete in the first quarter of 2027. Source
Pilavapadin cleared to enter Phase 3: The FDA raised no objections to pilavapadin advancing into Phase 3, with two 12-week placebo-controlled studies at 10 mg daily. Source
Cash rose after February equity sale: Cash, investments and restricted cash were $199.7 million at March 31, 2026, up from $125.2 million at December 31, 2025, mainly from equity sale proceeds. Source
$100 million Hercules loan facility: A $100 million facility with Hercules Capital was announced in May 2026; the $55 million first tranche was funded at closing and repaid the Oxford Finance loan. Source

“Taken together, we believe these events have the potential to be transformative for Lexicon’s future.”
Mike Exton, Ph.D., Lexicon’s chief executive officer and director

Guidance

Area	Period	Figure	Against last quarter
SONATA-HCM enrollment completion Source	mid-2026	mid-2026	Kept
SONATA-HCM topline results Source	first quarter of 2027	first quarter of 2027	Kept
SONATA-HCM target enrollment Source	study enrollment	500 patients	Kept
ZYNQUISTA NDA resubmission Source	mid-2026	mid-2026
ZYNQUISTA U.S. approval Source	2026	2026	Kept
LX9851 Phase 1 completion Source	initial Phase 1 program	first quarter of 2027	New
LX9851 milestone payment Source	later in 2026	$10 million
Pilavapadin Phase 3 design Source	Phase 3 registrational studies	two placebo-controlled, 12-week, two arm registrational studies comparing the 10 mg daily dose to placebo	Kept
Viatris ex-U.S. regulatory submissions Source	throughout 2026	throughout 2026	Kept

What changed from last quarter

New: A new $100 million loan facility with Hercules Capital was announced in May 2026; its initial $55 million tranche repaid the Oxford Finance loan. Source
New: Novo Nordisk initiated a Phase 1 study of LX9851 in March 2026, after the prior release reported IND-enabling work completed in 2025. Source

Revenue and net loss

Revenue rose on Novo Nordisk milestone: Total revenue was $21.1 million, including $20.0 million of Novo Nordisk development milestone revenue, compared with $1.3 million in the first quarter of 2025. Source
Net loss narrowed to $1.0 million: The net loss was $1.0 million, or less than $0.01 per share, against a net loss of $25.3 million, or $0.07 per share, in the first quarter of 2025. Source
INPEFA sales were $1.1 million: INPEFA net sales were $1.1 million in the quarter, against $1.3 million of net sales in the first quarter of 2025. Source

Sotagliflozin programs

SONATA-HCM enrollment nearing completion: Enrollment in the pivotal Phase 3 SONATA-HCM study, targeted at 500 patients, is expected to complete in mid-2026, with topline results in Q1 2027. Source
ZYNQUISTA resubmission timed for mid-2026: The type 1 diabetes NDA resubmission is anticipated in mid-2026, with approval possible this year, subject to STENO1 data meeting FDA requirements. Source
Kidney function analysis in type 1 diabetes: At ATTD in March 2026, a post hoc analysis of kidney function in type 1 diabetes was presented, showing glycemic improvement after one year in normal and mildly reduced function. Source

“Following our capital raise, receipt of two development milestones from Novo Nordisk earlier this year and our recently announced loan facility, our operations are now underpinned by a strengthened balance sheet,”
Scott Coiante, Lexicon’s chief financial officer

Partnered and early programs

Novo Nordisk started LX9851 Phase 1: Novo Nordisk started the Phase 1 study of LX9851 in March 2026, which is expected to complete in the first quarter of 2027. Source
Pilavapadin cleared to enter Phase 3: The FDA raised no objections to pilavapadin advancing into Phase 3, with two 12-week placebo-controlled studies at 10 mg daily. Source
Viatris secures first approval outside U.S.: Viatris obtained approval in the United Arab Emirates and has filed in several other markets, including Canada, Australia and New Zealand. Source

Operating expenses

R&D expense fell on lower external research: R&D expense was $12.8 million, down from $15.3 million, reflecting lower external research after completion of PROGRESS Phase 2b and the LX9851 license. Source
SG&A fell on lower INPEFA marketing: SG&A expense was $9.2 million, down from $11.6 million, reflecting reduced 2025 marketing for INPEFA and lower personnel costs. Source
Stock-based compensation held steady: Non-cash stock-based compensation was $3.1 million in the quarter, against $3.0 million in the first quarter of 2025. Source

“We remain focused on disciplined capital allocation as we continue to advance our clinical programs and seek to maximize long-term shareholder value.”
Scott Coiante, Lexicon’s chief financial officer

Cash and financing

Cash rose after February equity sale: Cash, investments and restricted cash were $199.7 million at March 31, 2026, up from $125.2 million at December 31, 2025, mainly from equity sale proceeds. Source
February net proceeds stated differently: The current release gives February net proceeds as $96.5 million, while the prior release estimated approximately $96.7 million for the same sale. Source
$100 million Hercules loan facility: A $100 million facility with Hercules Capital was announced in May 2026; the $55 million first tranche was funded at closing and repaid the Oxford Finance loan. Source
Loan rate and repayment terms: The floating rate is prime plus 3.1%, with a floor of 9.85%. Interest-only period is 18 months, principal due by May 4, 2030. Source
Later tranches depend on conditions: The second $20 million tranche depends on clinical, regulatory and financial milestones, and the third $25 million tranche requires Hercules consent. Source

Strategy and partnerships

LX9851 license economics: Lexicon received a $45 million upfront payment in April 2025 and is eligible for up to $1 billion in aggregate milestones, plus tiered royalties on LX9851 net sales. Source
Pilavapadin partnership talks continue: The prior release described partnership discussions for pilavapadin as continuing, aimed at maximizing its global potential.
Viatris supported on ex-U.S. strategy: Lexicon continues to support Viatris in regulatory filings and commercial strategy for sotagliflozin outside the U.S. and Europe. Source

Data presentations

Pilavapadin dose supported at AAN: At the AAN Annual Meeting in April 2026, additional PROGRESS Phase 2b data supported 10 mg as the Phase 3 dose. Source
Sotagliflozin subgroup analyses at ACC: Three SCORED and SOTA-P-CARDIA analyses presented at the ACC Annual Meeting in March 2026 covered benefits across patient subgroups. Source
Pilavapadin spasticity preclinical data: Pilavapadin was also evaluated as a potential oral therapy for spasticity in preclinical models of multiple sclerosis and spinal cord injury. Source

Coming up, as management said on 7 May 2026

Third LX9851 milestone possible: Lexicon is eligible for a third $10 million Novo Nordisk milestone that may be achieved later in 2026. Source
Viatris filings through 2026: Viatris is preparing further regulatory submissions in additional ex-U.S. and ex-European markets during 2026. Source
SONATA-HCM enrollment completion: Enrollment in SONATA-HCM is expected to complete in mid-2026. Source

Figures management reported

Figure	Reported
INPEFA net product sales Source	$1.1 million
R&D expense Source	$12.8 million
Ex-U.S. regulatory approval (Viatris) Source	United Arab Emirates approved
LX9851 Phase 1 completion Source	first quarter of 2027
SONATA-HCM topline results Source	first quarter of 2027

Risks management discussed

Regulatory: ZYNQUISTA resubmission and 2026 approval depend on STENO1, a third-party funded study, achieving FDA patient exposure and safety data requirements. Source
Financial: The Hercules loan carries a minimum cash covenant starting June 1, 2027, which can be extended or waived on specified milestones or financial conditions. Source
Financial: The second $20 million Hercules tranche depends on achieving clinical, regulatory and financial milestones and specified timing requirements. Source
Financial: The loan carries a floating rate of prime plus 3.1%, with a floor of 9.85%, so interest cost moves with the prime rate. Source

Earlier plans management reported on

On track: Management said it remains on track for potential NDA resubmission and regulatory approval in 2026. Source
Not stated: Management continues to expect enrollment completion in mid-2026, with topline results in the first quarter of 2027. Source
Not stated: Viatris is preparing regulatory submissions in additional ex-U.S. and ex-European markets throughout 2026. Source

Other quarters

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.

As filed with the SEC

Open the filing on EDGAR

LEXICON PHARMACEUTICALS REPORTS FIRST QUARTER 2026

FINANCIAL RESULTS AND PROVIDES CLINICAL UPDATES

SONATA-HCM anticipated to be fully enrolled mid-2026

Resubmission of NDA for ZYNQUISTA® in type 1 diabetes anticipated mid-2026 with potential for approval this year

Clinical development of LX9851 initiated by Novo Nordisk

Capital raise, development milestone payments, and recent $100 million loan facility reinforce strong financial position

Conference call and webcast at 8:30 am ET

The Woodlands, Texas, May 7, 2026 - Lexicon Pharmaceuticals, Inc. (Nasdaq: LXRX), today reported financial results for the three months ended March 31, 2026, and provided an update on key corporate milestones and accomplishments.

“We have been intently focused on progressing our late and early-stage development pipeline in cardiometabolism and we are now well positioned to achieve several pivotal milestones as a result of those efforts,” said Mike Exton, Ph.D., Lexicon’s chief executive officer and director. “Over the next 12 months, those events potentially include the announcement of topline data from our ongoing registrational trial of sotagliflozin in hypertrophic cardiomyopathy, U.S. regulatory approval of ZYNQUISTA as the first adjunct to insulin for glycemic management in people with type 1 diabetes and the completion of initial Phase 1 development of LX9851 by our licensee, Novo Nordisk. Taken together, we believe these events have the potential to be transformative for Lexicon’s future.”

“Following our capital raise, receipt of two development milestones from Novo Nordisk earlier this year and our recently announced loan facility, our operations are now underpinned by a strengthened balance sheet,” said Scott Coiante, Lexicon’s chief financial officer, “We remain focused on disciplined capital allocation as we continue to advance our clinical programs and seek to maximize long-term shareholder value.”

First Quarter 2026 Business and Pipeline Highlights

Cardiometabolic

Sotagliflozin

Sotagliflozin is an 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 continues in SONATA-HCM, a pivotal Phase 3 placebo-controlled study with a targeted enrollment of 500 patients with obstructive or nonobstructive HCM.
Lexicon continues to expect enrollment completion in mid-2026, with 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 which has not benefitted from a new treatment mechanism since the discovery of insulin.
Lexicon remains on track for potential New Drug Application (NDA) resubmission and regulatory approval in 2026 if the patient exposure and safety data requirements identified by the U.S. Food and Drug Administration are achieved by STENO1, a third-party funded, investigator-initiated study of sotagliflozin being conducted by the STENO Diabetes Center (Denmark).

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 in the United Arab Emirates, has submitted applications for regulatory approval in several other markets, including Canada, Australia and New Zealand, and is preparing for regulatory submissions in additional ex-U.S. and ex-European markets throughout 2026.

LX9851 for Obesity and Associated Cardiometabolic Disorders

LX9851 is a first-in-class, non-incretin, oral, small molecule inhibitor of acyl-CoA synthetase 5 (ACSL5) in development by Novo Nordisk for obesity and associated metabolic 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.
Lexicon earned a second $10 million milestone payment in 2026 from Novo Nordisk in connection with initiation of the Phase 1 study and is eligible for a third $10 million milestone payment that may be achieved later this year.
Under the terms of Lexicon’s exclusive license agreement with Novo Nordisk, Lexicon received an upfront payment of $45 million in April 2025 and is eligible to receive 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.

Pain

Pilavapadin (LX9211) for Diabetic Peripheral Neuropathic Pain (DPNP)

Pilavapadin is an orally delivered, small molecule drug candidate for the treatment of DPNP, among other potential indications. Pilavapadin has the potential to be the first oral, non-opioid drug therapy approved in neuropathic pain in more than 20 years.

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

Recent Data Presentations

Sotagliflozin

In March 2026, Lexicon presented results of a post hoc analysis of clinical data evaluating the impact of kidney function on the long-term efficacy and safety of sotagliflozin in people with T1D at the International Conference on Advanced Technologies & Treatments for Diabetes (ATTD). The analysis concluded that sotagliflozin improved glycemic control after one year in patients with normal and mildly reduced kidney function.
In March 2026, Lexicon presented three analyses from the SCORED and SOTA-P-CARDIA studies of sotagliflozin at the American College of Cardiology (ACC) Annual Meeting. The data provided further evidence of benefits of sotagliflozin across patient subgroups potentially related to its mechanism of action.

Pilavapadin

In April 2026, Lexicon presented additional pilavapadin clinical data at the American Academy of Neurology (AAN) Annual Meeting, including additional data from the PROGRESS Phase 2b study supporting the selection of pilavapadin 10 mg as the optimal dose for Phase 3 development in DPNP, as well as an evaluation of pilavapadin as a potential novel, oral therapy for spasticity based on spasticity-related endpoints in preclinical models of multiple sclerosis and spinal cord injury.

First Quarter 2026 Financial Highlights

Revenues: Total revenues were $21.1 million for the first quarter of 2026, consisting of $20.0 million of development milestone revenue from our license agreement with Novo Nordisk and net sales of INPEFA of $1.1 million.

Total revenues for the first quarter of 2025 were $1.3 million representing net sales of INPEFA.

Research and Development (R&D) Expenses: Research and development expenses for the first quarter of 2026 decreased to $12.8 million from $15.3 million for the corresponding period in 2025, reflecting lower external research expense in 2026 due to completion of our PROGRESS Phase 2b clinical trial and the licensing of LX9851 to Novo Nordisk.

Selling, General and Administrative (SG&A) Expenses: Selling, general and administrative expenses for the first quarter of 2026 decreased to $9.2 million from $11.6 million for the corresponding period in 2025. The decrease in 2026 reflects reduced marketing efforts in 2025 for INPEFA and lower personnel costs.

Net Loss: Net loss for the first quarter of 2026 was $1.0 million, or less than $0.01 per share, as compared to a net loss of $25.3 million, or $0.07 per share, in the corresponding period in 2025. For the first quarters of 2026 and 2025, net loss included non-cash, stock-based compensation expense of $3.1 million and $3.0 million, respectively.

Cash, Investments, and Restricted Cash: As of March 31, 2026, Lexicon had $199.7 million in cash, investments and restricted cash, as compared to $125.2 million as of December 31, 2025. The increase in cash and investments reflects net proceeds of $96.5 million from the sale of common and preferred stock in February 2026.

Hercules Capital Loan Facility

In May 2026, Lexicon announced 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.

The loan facility carries a floating interest rate equal to the prime rate plus 3.1%, with a floor not less than 9.85%, and provides for an initial interest-only period of 18 months, with the potential for two six-month extensions. The outstanding principal amount and all accrued but unpaid interest shall be repaid on or before May 4, 2030.

Lexicon’s obligations under the loan facility are subject to a minimum cash covenant beginning on June 1, 2027, subject to extension upon the achievement of certain clinical, regulatory and financial milestones and waiver upon the achievement of certain financial conditions.

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

Forward-looking statements notice

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 March 31,
(In thousands, except per share data)				2026		2025
		(Unaudited)
Revenues:
Net product revenue			$1,090		$1,262
Licensing and milestone revenue			20,000		-
Royalties and other revenue			12		-
Total revenues			21,102		1,262
Operating expenses:
Cost of sales	.		108		30
Research and development, including stock-based compensation of $1,369 and $1,574, respectively			12,756		15,303
Selling, general and administrative, including stock-based compensation of 1,709 and $1,469, respectively			9,234		11,608
Total operating expenses				22,098		26,941
Loss from operations			(996)		(25,679)
Interest and other expense			(1,590)		(1,835)
Interest income and other			1,543		2,219
Net loss			$(1,043)		$(25,295)
Net loss per common share, basic and diluted		$	( - )		$(0.07)
Weighted average common shares outstanding, basic and diluted			400,240		362,073
		As of			As of
Consolidated Balance Sheet Data		March 31, 2026			December 31, 2025
(In thousands)
Cash and investments			$170,658		$96,230
Restricted cash			29,000		29,000
Property and equipment, net			1,753		1,863
Goodwill			44,543		44,543
Total assets			268,819		184,987
Current portion of long-term debt			-		4,595
Long-term debt, net			49,684		49,408
Accumulated deficit			(2,018,626)		(2,017,583)
Total stockholders' equity			202,856		107,538

For Media Inquiries:

Dave Belian

Lexicon Pharmaceuticals, Inc.

lexinvest@lexpharma.com

For Investor Inquiries:

Lisa DeFrancesco

Lexicon Pharmaceuticals, Inc.

lexinvest@lexpharma.com