Here are 1-2 brief analogies to describe Lexicon Pharmaceuticals (LXRX):

• Acadia Pharmaceuticals, but for heart failure drugs. (Like Acadia, Lexicon is a biopharma company primarily focused on commercializing a single key approved drug, Inpefa, for a specific therapeutic area.)
• Esperion Therapeutics, but focused on heart failure treatments. (Similar to Esperion, Lexicon is a smaller biopharma company with an approved product in the cardiometabolic space, working to establish its market presence against larger competitors.)

• Inpefa (sotagliflozin): An oral dual SGLT1 and SGLT2 inhibitor approved to reduce the risk of cardiovascular death, hospitalization for heart failure, and urgent heart failure visits in adults with heart failure.

Lexicon Pharmaceuticals (LXRX) sells primarily to other companies, specifically major wholesale pharmaceutical distributors in the United States.

While Lexicon's financial filings refer to these as "major wholesale pharmaceutical distributors" without explicitly naming them, industry practice and the market landscape indicate that their primary customers are typically the largest pharmaceutical wholesalers. Based on their 2023 10-K filing, Lexicon commenced commercialization of its drug INPEFA® in the U.S. in the third quarter of 2023 and sold the product to three major wholesale pharmaceutical distributors. One distributor accounted for approximately 75% of gross product sales, and another accounted for approximately 25% of gross product sales for the year ended December 31, 2023.

The major customer companies for Lexicon Pharmaceuticals are likely:

• McKesson Corporation (MCK)
• Cencora, Inc. (formerly AmerisourceBergen Corporation) (COR)
• Cardinal Health, Inc. (CAH)

• WuXi AppTec Co., Ltd. (603259.SS, 2359.HK)

Mike Exton, Ph.D. Chief Executive Officer and Director

Appointed CEO on July 8, 2024, Dr. Exton most recently served as the global cardiometabolic therapeutic head at Novartis for fourteen years. His experience at Novartis involved leading global cross-functional commercial therapeutic areas of cardiovascular and metabolic disease, with responsibilities in discovery, development, commercial launch preparation, business development, investor relations, and media engagement. Before joining Novartis, he was director of business development with Invida Pty Ltd and spent nine years with Eli Lilly Australia in various research, business development, and commercial positions. Dr. Exton holds a B.Sc. and Ph.D. in neuroscience from the University of Newcastle and a Ph.D. in immunology from the University of Essen, Germany.

Scott M. Coiante Senior Vice President and Chief Financial Officer

Mr. Coiante was appointed Senior Vice President and Chief Financial Officer of Lexicon Pharmaceuticals in January 2025. Prior to this role, he served as Senior Vice President and Chief Financial Officer of Agile Therapeutics and Aprea Therapeutics Inc. His professional experience also includes time with Medarex Inc and Ernst & Young LLP.

Craig B. Granowitz M.D., Ph.D. Senior Vice President and Chief Medical Officer

Dr. Granowitz has served as Lexicon's Senior Vice President and Chief Medical Officer since August 2021. Before joining Lexicon, he was the Chief Medical Officer at Amarin Corporation plc, a position he held since 2016. His prior experience includes serving as Senior Vice President and Head of Global Medical Affairs, Global Human Health at Merck & Co., Inc., and various medical and commercial management positions at Schering-Plough Corporation, including Group Vice President, Head of Global Medical Affairs. Dr. Granowitz earned his Ph.D. in Biochemistry and Molecular Biology and his M.D. from Columbia University, and a B.A. from Dartmouth College.

Brian T. Crum Senior Vice President and General Counsel

Mr. Crum has been Lexicon's Vice President and General Counsel since May 2010, having previously held various legal leadership positions since joining the company in 2001. He previously worked as a corporate securities attorney with the law firms of Brobeck, Phleger & Harrison LLP and Andrews & Kurth L.L.P., representing companies in the energy and information technology industries. Mr. Crum holds a B.B.A. and J.D. from the University of Texas.

Lisa M. DeFrancesco Senior Vice President, Investor Relations and Corporate Communications

Ms. DeFrancesco currently serves as the Senior Vice President of Investor Relations and Corporate Communications at Lexicon Pharmaceuticals, Inc., a role she has held since November 2023. With over two decades of experience in investor relations, she previously founded Lisa DeFrancesco Advisory, LLC, and held senior roles in investor relations and corporate affairs at companies such as Amarin Corporation and Intercept Pharmaceuticals. She has also held positions at Allergan, Virgin Mobile USA, and Realogy. Ms. DeFrancesco earned a Bachelor of Science in Business Administration with a concentration in Marketing from Seton Hall University.

Lexicon Pharmaceuticals (LXRX) faces several key risks to its business:

1. Financial Viability and Cash Burn: Lexicon Pharmaceuticals is currently unprofitable and has a history of significant cash burn and negative operating margins. Its cash and investments have seen a considerable drawdown, raising concerns about its financial runway and future solvency. The company's net profit margin has been substantially negative, reflecting heavy investment in research and development that outpaces its revenue. Analysts have expressed apprehension regarding the company's financial viability, and its probability of bankruptcy is estimated to be high.
2. Clinical Development and Regulatory Hurdles: The company's valuation is largely dependent on the successful development and regulatory approval of its pipeline assets, including sotagliflozin (for hypertrophic cardiomyopathy and potential Type 1 Diabetes resubmission), pilavapadin (for pain), and the early-stage LX9851 (for obesity). Lexicon has experienced multiple regulatory setbacks, particularly with Zynquista (sotagliflozin) for Type 1 Diabetes, including repeated FDA rejections and an unfavorable advisory committee vote. The success of clinical trials is inherently uncertain, with a low percentage of Phase 1 drugs ultimately achieving commercialization. LX9851 is also in a very early stage, with meaningful human data not expected until 2027.
3. Commercialization Challenges and Market Competition: Even with its FDA-approved heart failure drug, INPEFA (sotagliflozin), Lexicon has struggled with slow sales traction and modest product revenues. The company has strategically repositioned by reducing its commercial operations and marketing efforts for INPEFA to focus primarily on pipeline development and out-licensing, indicating difficulties in commercializing its products directly. Furthermore, INPEFA faces intense competition from established drugs in the market, such as Jardiance, which could hinder its sales growth and market penetration.

The overwhelming market dominance and entrenched positions of existing, highly effective SGLT2 inhibitors (such as Jardiance and Farxiga) present a clear emerging threat to Lexicon Pharmaceuticals. This strong competitive landscape severely hinders the commercial adoption and market penetration of Lexicon's Inpefa (sotagliflozin) for heart failure, as Inpefa struggles to establish meaningful differentiation and capture significant market share against these well-established, broadly indicated, and aggressively marketed alternatives. This dynamic threatens the commercial viability of Lexicon's primary revenue-generating product and its long-term financial stability.

Lexicon Pharmaceuticals (LXRX) has several main products and pipeline candidates with the following addressable market sizes:

• INPEFA (sotagliflozin) for Heart Failure: The addressable market in the U.S. for chronic heart failure was approximately USD 5.5 billion in 2023. Approximately 6.7 million Americans suffer from heart failure, a figure projected to increase to 8 million by 2030.
• Pilavapadin (LX9211) for Diabetic Peripheral Neuropathic Pain (DPNP): The global market for DPNP is valued at USD 3.6 billion.

Lexicon Pharmaceuticals' sotagliflozin was rejected by the FDA for Type 1 diabetes in the U.S., and the company has halted launch preparations for this indication.

For LX9851 for obesity and associated cardiometabolic disorders, Lexicon has entered into a licensing agreement with Novo Nordisk for its development, manufacture, and commercialization in all indications. As this product is in preclinical/IND stage and licensed out, a specific addressable market size directly attributable to Lexicon for this product is not readily available.

Lexicon Pharmaceuticals (LXRX) is anticipated to drive future revenue growth over the next two to three years through several key initiatives and product advancements:

1. Increased Sales and Global Expansion of INPEFA (sotagliflozin) for Heart Failure: Lexicon's INPEFA, an oral inhibitor for heart failure, is a significant revenue contributor, with US sales reported at $1.0 million in Q3 2025. Further growth is expected through expanded commercialization efforts by its licensee, Viatris, which is pursuing regulatory approvals and launching sotagliflozin in markets outside the U.S. and Europe, including a first commercial order shipped to the United Arab Emirates. Additionally, ongoing clinical trials like the SONATA Phase 3 study for sotagliflozin in hypertrophic cardiomyopathy (HCM) could broaden its market and indications.
2. Milestone Payments and Royalties from LX9851 Licensing Agreement with Novo Nordisk: A substantial driver of future revenue is the exclusive licensing agreement for LX9851 with Novo Nordisk, announced in March 2025. Lexicon received an upfront payment of $45 million in April 2025 and is eligible for up to $1 billion in potential development, regulatory, and sales milestone payments, along with tiered royalties on net sales. The completion of IND-enabling studies for LX9851 positions Novo Nordisk to advance it into clinical development, triggering potential near-term milestone payments.
3. Potential Re-submission and Approval of Zynquista for Type 1 Diabetes: Lexicon submitted additional data to the FDA in September 2025 to support the benefit-risk profile of Zynquista (sotagliflozin) as an adjunct to insulin for glycemic control in adults with type 1 diabetes. The company anticipates receiving written feedback from the FDA by the end of 2025 and aims for an NDA re-submission as early as 2026. A successful re-submission and subsequent approval would open up a new product revenue stream.
4. Development and Partnership Opportunities for Pilavapadin (LX9211): Pilavapadin, an oral, non-opioid drug candidate for diabetic peripheral neuropathic pain (DPNP), has shown promising Phase 2b data supporting a 10 mg dose. Lexicon plans an End-of-Phase 2 meeting with the FDA in Q4 2025 and is actively engaging with potential partners for its Phase 3 registrational trials. Any future partnership agreements could include upfront payments and development milestones, contributing to revenue growth.

Share Repurchases

• Lexicon Pharmaceuticals made annual share repurchases of $864K in 2022, $824K in 2023, and $1.73M in 2024.
• As of June 2025, the 1-Year Share Buyback Ratio was -0.50%, indicating no significant share buybacks or potential share issuance.

Share Issuance

• In March 2024, Lexicon announced a private investment in public equity (PIPE) financing, which was expected to generate gross proceeds of approximately $250 million.
• This PIPE financing involved the sale of approximately 2.3 million shares of Series A convertible preferred stock at $108.50 per share, convertible into about 115.2 million shares of common stock.
• On November 6, 2025, Lexicon entered into an Open Market Sale Agreement to potentially sell up to $75 million in common stock, though no sales had been made by that date.

Inbound Investments

• In March 2025, Lexicon signed an exclusive licensing agreement with Novo Nordisk for LX9851, receiving an upfront payment of $45 million in April 2025.
• Under the Novo Nordisk agreement, Lexicon is eligible for up to $1 billion in total upfront and potential development, regulatory, and sales milestone payments, along with tiered royalties on net sales.
• In 2024, Lexicon secured a license agreement with Viatris for sotagliflozin for markets outside the U.S. and Europe, which included a $25 million upfront payment.

Outbound Investments

• Lexicon Pharmaceuticals has not made any investments or acquisitions.

Capital Expenditures

• Capital expenditures for Lexicon Pharmaceuticals were -$1.03 million for the period ending December 31, 2024.
• The company plans to dedicate significant capital to research and development (R&D) for its drug candidates and other general corporate activities.
• R&D expenses are projected to be between $70-$75 million for the full year 2025, reflecting a primary focus on advancing its pipeline.