Lexicon Pharmaceuticals, Inc. (NASDAQ: LXRX) reported its second quarter 2026 financial results, highlighting key pipeline milestones including the completion of enrollment in its pivotal SONATA-HCM Phase 3 study.
The SONATA-HCM trial, a placebo-controlled Phase 3 study, substantially exceeded its enrollment target of 500 patients across both non-obstructive and obstructive hypertrophic cardiomyopathy indications.
The final study population included a substantial majority of patients with non-obstructive HCM, a group for whom effective treatment options remain particularly limited.
Topline data from the SONATA-HCM study are expected in the first quarter of 2027, a timeline the company confirmed remains on track.
Chief Executive Officer Mike Exton, Ph.D., said “I’m particularly pleased that we have completed enrollment of our SONATA-HCM study on time, reflecting strong clinical interest for a novel class of medicine to treat HCM.”
Exton added that he could “not be more confident in how these opportunities are poised to shape the company over the coming months,” signaling strong internal conviction around the pipeline.
On the financial side, Lexicon posted a net loss of $31.8 million, or $0.07 per share, for the second quarter of 2026, compared to net income of $3.3 million, or $0.01 per share, in the same period of 2025.
Total revenues for the quarter came in at $0.7 million, down sharply from $28.9 million in the prior-year period, which had included $27.6 million in licensing revenue from the Novo Nordisk agreement.
Research and development expenses rose to $17.4 million from $15.7 million in the corresponding 2025 period, driven by higher external research costs related to the ongoing SONATA-HCM trial.
Selling, general and administrative expenses increased modestly to $9.8 million from $9.4 million, reflecting higher professional and consulting costs during the quarter.
As of June 30, 2026, Lexicon held $190.6 million in cash and investments, up from $125.2 million in cash, investments, and restricted cash as of December 31, 2025.
The increase in liquidity was largely attributable to net proceeds of $96.2 million raised through the sale of common and preferred stock in February 2026.
In May 2026, Lexicon entered into a $100 million loan facility with Hercules Capital, with an initial $55 million tranche used to repay its previous loan facility with Oxford Finance.
Chief Financial Officer Scott Coiante noted that “with early commercial planning now underway for our late-stage pipeline, we are committed to maximizing the value of these opportunities to create long-term shareholder value.”
Lexicon’s NDA resubmission activities for ZYNQUISTA in type 1 diabetes are nearing completion, with the company anticipating resubmission in the fourth quarter of 2026 pending data from the STENO1 investigator-initiated study conducted by the STENO Diabetes Center in Denmark.
Licensee Novo Nordisk initiated a Phase 1 study of LX9851, a first-in-class oral inhibitor of ACSL5, in March 2026, with the program expected to be completed in the first quarter of 2027.
Under the Novo Nordisk license agreement, Lexicon received an upfront payment of $45 million and remains eligible for up to $1 billion in aggregate milestone payments and tiered royalties on net sales.
Licensee Viatris has secured regulatory approval for sotagliflozin in heart failure in the United Arab Emirates and Bahrain, with applications pending in markets including Saudi Arabia, Canada, Australia, and New Zealand, among others.
