Lexicon Pharmaceuticals Q3 Expenses Decline

Ticker: LXRX · Form: 10-Q · Filed: Nov 13, 2024

Sentiment: neutral

Topics: expenses, R&D, SG&A, financials

TL;DR

Lexicon's Q3 R&D costs down to $71.7M from $81.5M YoY. SG&A also slightly lower.

AI Summary

Lexicon Pharmaceuticals, Inc. filed its 10-Q for the period ending September 30, 2024. The company reported research and development expenses of $71.7 million for the third quarter of 2024, a decrease from $81.5 million in the same period of 2023. Selling, general, and administrative expenses also saw a slight decrease from $34.6 million in Q3 2023 to $33.8 million in Q3 2024.

Why It Matters

A decrease in R&D and SG&A expenses could indicate improved cost management or a shift in strategic priorities, potentially impacting future growth and profitability.

Risk Assessment

Risk Level: medium — Pharmaceutical companies face inherent risks related to drug development, regulatory approvals, and market competition, which are not fully detailed in this expense-focused filing excerpt.

Key Numbers

Key Players & Entities

FAQ

What were Lexicon Pharmaceuticals' total R&D expenses for the nine months ended September 30, 2024?

The filing indicates that for the nine months ended September 30, 2024, R&D expenses were $244.9 million.

How did Lexicon's SG&A expenses for the nine months ended September 30, 2024, compare to the same period in 2023?

SG&A expenses for the nine months ended September 30, 2024, were $103.8 million, compared to $104.1 million for the same period in 2023.

What was the net loss for Lexicon Pharmaceuticals for the third quarter of 2024?

The net loss for the three months ended September 30, 2024, was $69.4 million.

What was the net loss for Lexicon Pharmaceuticals for the nine months ended September 30, 2024?

The net loss for the nine months ended September 30, 2024, was $214.1 million.

What was Lexicon's cash and cash equivalents balance as of September 30, 2024?

As of September 30, 2024, Lexicon Pharmaceuticals had $301.1 million in cash and cash equivalents.

Filing Stats: 4,889 words · 20 min read · ~16 pages · Grade level 15.2 · Accepted 2024-11-13 07:12:40

Key Financial Figures

Filing Documents

– Financial Information

Part I – Financial Information 3

Financial Statements

Item 1. Financial Statements 3 Condensed Consolidated Balance Sheets - September 30, 2024 (unaudited) and December 31, 2023 3 Condensed Consolidated Statements of Comprehensive Loss (unaudited) - Three and Nine Months Ended September 30, 2024 and 2023 4 Condensed Consolidated Statements of Stockholders' Equity (unaudited) - Three and Nine Months Ended September 30, 2024 and 2023 5 Condensed Consolidated Statements of Cash Flows (unaudited) - Nine Months Ended September 30, 2024 and 2023 7 Notes to Condensed Consolidated Financial Statements (unaudited) 8

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 16

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 21

Controls and Procedures

Item 4. Controls and Procedures 21

– Other Information

Part II – Other Information 22

Legal Proceedings

Item 1. Legal Proceedings 22

Risk Factors

Item 1A. Risk Factors 22

Other Information

Item 5. Other Information 24

Exhibits

Item 6. Exhibits 25

Signatures

Signatures 26 The Lexicon name and logo and INPEFA are registered trademarks and ZYNQUISTA is a trademark of Lexicon Pharmaceuticals, Inc. —————— Factors Affecting Forward Looking Statements This quarterly report on Form 10-Q contains forward-looking statements. These statements relate to future events or our future financial performance. We have attempted to identify forward-looking statements by terminology including "anticipate," "believe," "can," "continue," "could," "estimate," "expect," "intend," "may," "plan," "potential," "predict," "should" or "will" or the negative of these terms or other comparable terminology. These statements are only predictions and involve known and unknown risks, uncertainties and other factors, including the risks outlined under "Part II, Item 1A. - Risk Factors" and in our annual report on Form 10-K for the year ended December 31, 2023, that may cause our or our industry's actual results, levels of activity, performance or achievements to be materially different from any future results, levels or activity, performance or achievements expressed or implied by these forward-looking statements. Although we believe that the expectations reflected in the forward-looking statements are reasonable, future results, levels of activity, performance or achievements may vary materially from our expectations. We are not undertaking any duty to update any of the forward-looking statements after the date of this quarterly report on Form 10-Q to conform these statements to actual results, unless required by law. 2

– Financial Information

Part I – Financial Information

Financial Statements

Item 1. Financial Statements Lexicon Pharmaceuticals, Inc. Condensed Consolidated Balance Sheets (In thousands, except par value and share amounts) As of September 30, As of December 31, 2024 2023 Assets (unaudited) Current assets: Cash and cash equivalents $ 34,551 $ 22,465 Short-term investments 223,818 147,561 Accounts receivable, net 2,895 1,010 Inventory 636 381 Prepaid expenses and other current assets 6,706 5,130 Total current assets 268,606 176,547 Property and equipment, net of accumulated depreciation and amortization of $ 1,961 and $ 4,538 , respectively 2,135 1,987 Goodwill 44,543 44,543 Operating lease right-of-use-assets 5,011 5,524 Other assets 828 828 Total assets $ 321,123 $ 229,429 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 14,201 $ 14,389 Accrued liabilities 21,845 17,157 Total current liabilities 36,046 31,546 Long-term debt, net 99,895 99,508 Other long-term liabilities 6,670 5,265 Total liabilities 142,611 136,319 Commitments and contingencies (Note 6) Stockholders' Equity: Preferred stock, $ 0.01 par value; 5,000,000 shares authorized Series A Convertible preferred stock; 2,304,147 shares issued and none outstanding at September 30, 2024; no shares issued or outstanding at December 31, 2023 — — Common stock, $ 0.001 par value; 450,000,000 shares authorized; 363,020,303 and 245,792,668 shares issued, respectively 363 245 Additional paid-in capital 2,115,891 1,862,558 Accumulated deficit ( 1,933,476 ) ( 1,766,839 ) Accumulated other comprehensive income 349 31 Treasury stock, at cost, 1,528,008 and 867,973 shares, respectively ( 4,615 ) ( 2,885 ) Total stockholders' equity 178,512 93,110 Total liabilities and stockholders' equity $ 321,123 $ 229,429 The accompanying notes are an integral part of these condensed consolidated financial statements. 3 Lexicon Pharmaceuticals, Inc. Condensed Consolidated Statements of Comprehensive Loss (In thousands, except per

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