Citigroup Raises Lexicon Pharmaceuticals PT to $1.9, Maintains Buy Rating

Citigroup Raises Lexicon Pharmaceuticals PT to $1.9, Maintains Buy Rating

Citigroup analysts have raised their price target for Lexicon Pharmaceuticals (LXRX) to $1.9, maintaining a buy rating for the biopharmaceutical company. The move follows the company's strong second-quarter earnings report, which included a net income of $3.3 million or $0.01 per share, compared to a net loss of $53.4 million or $0.17 per share in the same period last year [1].

The earnings report highlighted several key achievements. Lexicon Pharmaceuticals reported a significant reduction in operating expense guidance for the year, with total operating expenses now expected to be in the range of $105 million to $115 million, down from the previously announced range of $135 million to $145 million. This reduction is primarily attributed to the transfer of costs to Novo Nordisk under their licensing agreement [1].

The company also reported strong progress in its research and development efforts. CEO Michael S. Exton emphasized that all lead R&D programs, including pilavapadin, LX9851, and sotagliflozin, remain on track. Exton noted that the company has completed the secondary analysis of Phase IIb progress results for pilavapadin and is now in the process of analyzing the totality of Phase II data [1].

Lexicon Pharmaceuticals' partnership strategy is also showing promising results. The company's collaboration with Viatris has led to the approval of sotagliflozin in the United Arab Emirates, with additional regulatory filings expected in several other countries before the end of the year [1].

The company's stock has added about 42.2% since the beginning of the year, significantly outperforming the S&P 500's gain of 7.1%. Analysts are optimistic about the company's prospects, citing strong clinical data, robust partnership momentum, and disciplined capital allocation [2].

References:
[1] https://seekingalpha.com/news/4480175-lexicon-lowers-2025-operating-expense-guidance-to-105m-115m-as-r-and-d-pivot-advances
[2] https://www.sharewise.com/de/news_articles/Lexicon_Pharmaceuticals_LXRX_Q2_Earnings_and_Revenues_Top_Estimates_Zacks_20250806_1445