Lexicon Pharmaceuticals Reports 12% Revenue Growth and Improved Net Loss in Q1 2025

Lexicon Pharmaceuticals, Inc. reported its financial results for the first quarter of 2025, revealing total revenues of $1.3 million, a 12% increase from $1.1 million in the same period last year. The revenue primarily stemmed from product sales of its drug INPEFA® (sotagliflozin). The company recorded a net loss of $25.3 million, or $0.07 per share, significantly improved from a net loss of $48.4 million, or $0.20 per share, in the first quarter of 2024. This reduction in losses reflects a strategic shift in operational expenses, particularly in selling, general, and administrative costs.

Operating expenses for the quarter totaled $26.9 million, down 42% from $46.5 million in the prior year. The decrease was largely attributed to a significant reduction in selling, general, and administrative expenses, which fell from $32.1 million to $11.6 million, primarily due to a restructuring that reduced headcount and associated costs. Research and development expenses increased slightly to $15.3 million from $14.4 million, driven by higher costs related to preclinical and clinical development activities.

In terms of strategic developments, Lexicon entered into a significant licensing agreement with Novo Nordisk in March 2025 for its preclinical drug candidate LX9851, aimed at treating obesity and related cardiometabolic disorders. The agreement included an upfront payment of $45 million, with potential milestone payments totaling up to $960 million based on regulatory and sales achievements. This partnership is expected to enhance Lexicon's financial position and support its ongoing research and development efforts.

As of March 31, 2025, Lexicon's total assets were reported at $297.7 million, with cash and cash equivalents amounting to $62.9 million, down from $66.7 million at the end of 2024. The company also reported a significant increase in accounts receivable, reflecting the upfront payment from Novo Nordisk. Total liabilities increased to $174.6 million, primarily due to the restructuring of its debt obligations, including a prepayment of $45 million on its Oxford Term Loans in April 2025.

Looking ahead, Lexicon anticipates continued investment in its research and development pipeline, particularly for its drug candidates. The company believes its current cash reserves and expected revenues from collaborations will be sufficient to fund operations for at least the next 12 months. However, it acknowledges the need for additional capital in the future to support ongoing and new projects, which may involve securing further collaborations or financing arrangements.