Lexicon Pharmaceuticals — Third Quarter 2026 Earnings Summary

Financial Performance:

• Total revenues for the three months ended September 30, 2026, were $11.3 million, a decrease from $14.2 million in the same period of 2025.
• Revenue composition for Q3 2026 included $10.0 million in development milestone revenue from the Novo license agreement and $1.2 million in net sales of INPEFA, compared to $13.2 million in licensing revenue and $1.0 million in INPEFA sales in Q3 2025.
• Research and development expenses decreased to $16.2 million in Q3 2026 from $18.8 million in Q3 2025, driven by lower external research expenses from the completion of the PROGRESS Phase 2b trial, partially offset by higher SONATA-HCM Phase 3 expenses.
• Selling, general and administrative (SG&A) expenses increased to $9.5 million in Q3 2026 from $7.6 million in Q3 2025, attributed to higher employee benefit costs and pre-commercialization expenses.
• Net loss for Q3 2026 was $14.0 million ($0.03 per share), compared to a net loss of $12.8 million ($0.04 per share) in Q3 2025; both periods included $3.4 million in non-cash stock-based compensation.
• Cash, investments, and restricted cash totaled $183.2 million as of September 30, 2026, up from $125.2 million as of December 31, 2025, primarily due to $96.2 million in net proceeds from the sale of common and preferred stock in February 2026.
• Long-term debt, net, increased to $51.9 million as of September 30, 2026, from $49.4 million as of December 31, 2025.

Business Segments and Product Lines:

• Sotagliflozin (INPEFA): Commercially available in the U.S. for heart failure; licensee Viatris obtained regulatory approval for heart failure in the UAE and Bahrain and submitted applications in Saudi Arabia, Canada, Australia, New Zealand, Mexico, Singapore, Oman, Thailand, Turkey, Malaysia, Philippines, and Kuwait.
• Hypertrophic Cardiomyopathy (HCM): Enrollment completed in the Phase 3 SONATA-HCM study with 542 patients enrolled, substantially exceeding the planned enrollment; top-line data expected in Q1 2027.
• Type 1 Diabetes (ZYNQUISTA): Positive safety data from the STENO1 study showed low rates of DKA comparable to standard of care, supporting the resubmission of the NDA expected in Q1 2027.
• LX9851: Novo initiated a Phase 1 study in March 2026 for obesity; Lexicon earned a third $10 million milestone payment in August 2026, bringing total earned milestones to $75 million of the $1 billion potential under the collaboration.
• Pilavapadin (LX9211): FDA raised no objections to advancing into Phase 3 for Diabetic Peripheral Neuropathic Pain (DPNP) following Phase 2 PROGRESS results; preclinical data shows significant body weight reduction in obesity when used as monotherapy or with semaglutide.

Other Key Points:

• Lexicon management highlighted the completion of SONATA-HCM enrollment and the positive STENO1 safety data as key catalysts positioning the company for 2027.
• The company reported a net loss per share of $0.11 for the nine months ended September 30, 2026, compared to $0.10 in the same period of 2025.
• Total assets increased to $242.0 million as of September 30, 2026, from $185.0 million as of December 31, 2025.
• Lexicon will hold a conference call and webcast at 8:30 am ET to review results.