Lexicon Pharmaceuticals (LXRX) investor relations material

Executive summary

• Advanced late-stage regulatory programs with major milestones expected mid-year 2026, including SONATA phase III for HCM and NDA resubmission for ZYNQUISTA in T1D, and expanded global reach through Viatris and Novo Nordisk partnerships.

• Achieved significant R&D progress in cardiometabolic diseases and chronic pain, with key pipeline advancements in sotagliflozin, LX9851, and pilavapadin, including new clinical and preclinical data presentations.

• Maintained operational discipline, reduced expenses, and executed successful capital raises and new debt facilities to ensure financial stability and support ongoing R&D and commercialization.

• Entered major licensing agreements with Novo Nordisk (LX9851 for obesity) and Viatris (sotagliflozin outside US/EU), generating significant milestone revenue and expanding international collaborations.

• Focused on regulatory approval for ZYNQUISTA in T1D and progressing SONATA-HCM trial for HCM, with additional efforts in obesity and chronic pain pipeline assets.

Financial highlights

• Total revenues for Q1 2026 were $21.1 million, up from $1.3 million in Q1 2025, driven by $20 million in milestone payments from Novo Nordisk and $1.1 million in INPEFA sales.

• R&D expenses decreased to $12.8 million from $15.3 million year-over-year; SG&A expenses fell to $9.2 million from $11.6 million.

• Operating expenses decreased to $22.1 million from $26.9 million year-over-year.

• Net loss narrowed significantly to $1.0 million (less than $0.01 per share) from $25.3 million ($0.07 per share) in Q1 2025.

• Cash, equivalents, and investments totaled $199.7 million as of March 31, 2026, up from $125.2 million at year-end 2025, reflecting equity raises and milestone receipts; total debt was $49.7 million, down from $54 million.

Outlook and guidance

• Reaffirmed full-year 2026 operating expense outlook, projecting $100–$110 million, with R&D at $63–$68 million and SG&A at $37–$42 million, excluding Phase 3 pilavapadin costs.

• Anticipates completion of SONATA-HCM enrollment and ZYNQUISTA NDA resubmission by mid-2026, with potential regulatory approvals and data readouts in late 2026 and early 2027.

• Expects continued financial discipline and flexibility to support upcoming milestones, with current cash and expected revenues projected to fund operations for at least the next 12 months.

• LX9851 Phase 1 program expected to complete in Q1 2027, with further milestone payments possible.