Lexicon Pharmaceuticals (LXRX) investor relations material

Executive summary

• Completed enrollment in the pivotal SONATA-HCM Phase 3 trial for sotagliflozin, targeting both obstructive and non-obstructive HCM, with over 500 patients enrolled and topline data expected in Q1 2027.

• NDA resubmission for ZYNQUISTA (sotagliflozin) in type 1 diabetes is anticipated in Q4 2026, supported by STENO-1 safety data and ongoing regulatory discussions.

• LX9851 for obesity is in Phase 1 with Novo Nordisk, with $20 million in milestones achieved and potential for further payments; study completion expected Q1 2027.

• Viatris is leading global expansion for sotagliflozin in heart failure, with approvals in UAE and Bahrain and additional regulatory submissions in progress.

• Early commercial planning and investments are underway for late-stage pipeline assets, including medical education and market access.

Financial highlights

• Q2 2026 revenues were $0.7 million, down from $28.9 million in Q2 2025 due to lower milestone and licensing revenue.

• Net loss for Q2 2026 was $31.8 million ($0.07/share), compared to net income of $3.3 million ($0.01/share) in Q2 2025, including a $4.3 million loss on early debt extinguishment.

• R&D expenses rose to $17.4 million from $15.7 million year-over-year, and SG&A expenses increased to $9.8 million from $9.4 million.

• Cash, cash equivalents, and short-term investments totaled $190.6 million as of June 30, 2026, up from $125.2 million at year-end 2025.

• Total assets increased to $250.1 million, and total debt decreased to $51.4 million as of June 30, 2026.

Outlook and guidance

• Operating expense guidance for 2026 is $100–110 million, with R&D at $63–68 million and SG&A at $37–42 million.

• NDA resubmission for ZYNQUISTA in T1D is planned for Q4 2026, with a potential FDA decision in Q2 2027.

• Topline SONATA-HCM Phase 3 data expected in Q1 2027; Novo Nordisk’s LX9851 Phase 1 study completion also expected Q1 2027.

• Viatris anticipates regulatory decisions for sotagliflozin in Australia and Canada in 2026.

• Current cash and expected revenues projected to fund operations for at least the next 12 months.