Lexicon Third-Quarter Revenue Falls, Net Loss Widens

The Tip Desk · November 11, 2026 · 3 min read

The cardiometabolic company booked $11.3 million of third-quarter revenue, including a $10.0 million Novo milestone, and now expects a ZYNQUISTA NDA resubmission in the first quarter of 2027.

Lexicon Pharmaceuticals (LXRX) reported third-quarter 2026 revenue of $11.3 million, down from $14.2 million a year earlier, as licensing and milestone income from Novo fell to $10.0 million from $13.2 million.

The Woodlands, Texas-based cardiometabolic biopharmaceutical company said the $10.0 million milestone came in August after a key patient-dosing step in the Phase 1 study of LX9851, an oral ACSL5 inhibitor Novo is developing for obesity. That milestone was the third $10 million milestone of 2026 and brought the total earned under the collaboration to $75 million of $1 billion in potential upfront, development, regulatory and commercial milestone payments.

INPEFA, the heart-failure product, contributed $1.2 million of net sales, up from $1.0 million a year earlier. Royalties and other revenue were $69 thousand.

Net loss widened to $14.0 million, or $0.03 a share, from $12.8 million, or $0.04 a share, in the year-ago quarter. Both periods included $3.4 million of non-cash stock-based compensation. Loss from operations was $14.5 million.

Research and development expense decreased to $16.2 million from $18.8 million, which the company said reflected lower external research after the PROGRESS Phase 2b trial in 2025, partially offset by higher SONATA-HCM Phase 3 costs. Selling, general and administrative expense rose to $9.5 million from $7.6 million on higher employee benefit costs and pre-commercialization expenses.

Cash and investments were $183.2 million as of September 30, 2026, compared with $125.2 million in cash, investments and restricted cash at year-end 2025. The company said the increase primarily reflected $96.2 million of net proceeds from February 2026 common and preferred stock sales, partially offset by cash used in operations. Long-term debt, net, was $51.9 million.

Chief executive Mike Exton said the quarter “brought Lexicon into sharper focus as a cardiometabolic company” and positioned the firm to approach 2027 with “multiple near-term potential catalysts.” Chief financial officer Scott Coiante said the company remains focused on investing prudently and that its financial position enables it to advance SONATA-HCM and the planned ZYNQUISTA resubmission.

The pivotal SONATA-HCM trial of sotagliflozin in symptomatic obstructive and non-obstructive hypertrophic cardiomyopathy enrolled 542 patients, substantially exceeding the planned 500. The second-quarter release had already said enrollment was complete; the first-quarter release had still expected completion in mid-2026. Baseline characteristics included a mean KCCQ-CSS of 59. Lexicon continues to expect topline results in the first quarter of 2027. Two sotagliflozin studies were scheduled for the 2026 American Heart Association Scientific Sessions in Chicago.

STENO1, the third-party-funded investigator-initiated sotagliflozin study at Denmark’s STENO Diabetes Center, achieved the patient-exposure and safety data requirements agreed with the FDA to support resubmission of the ZYNQUISTA NDA for type 1 diabetes. The company said positive safety data showed low rates of diabetic ketoacidosis comparable to standard of care. Data preparation and administrative work is being completed for a resubmission now anticipated in the first quarter of 2027, after the second-quarter release had said the study was approaching those requirements and had anticipated resubmission in the fourth quarter of 2026.

Licensee Viatris obtained heart-failure regulatory approval in the United Arab Emirates and Bahrain and submitted applications in several other markets, including Saudi Arabia, Canada, Australia, New Zealand, Mexico, Singapore, Oman, Thailand, Turkey, Malaysia, the Philippines and Kuwait.

Pilavapadin, an investigational AAK1 inhibitor for diabetic peripheral neuropathic pain, remains on a path to two 12-week Phase 3 registrational studies after the FDA raised no objections to advancing the 10 mg daily dose. Lexicon said it recently generated preclinical data showing body-weight reduction with pilavapadin as monotherapy and in combination with semaglutide.