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Key Takeaways Lexicon is advancing sotagliflozin in a phase III HCM study, with top-line data expected in Q1 2027.Lexicon's Novo Nordisk-partnered LX9851 entered phase I in 2026, with milestone-payment potential.LXRX targets a 2026 T1D NDA resubmission for sotagliflozin, pending STENO1 & fulfillment of FDA requirements. Lexicon Pharmaceuticals (LXRX - Free Report) is advancing its cardiometabolic franchise, led by its sole marketed drug, sotagliflozin. Sotagliflozin, an oral inhibitor of sodium-glucose cotransporter types I and II (SGLT1 and SGLT2), has been marketed in the United States as Inpefa since 2023 to reduce the risk of cardiovascular death and heart failure in adults. Lexicon has granted Viatris (VTRS - Free Report) the rights to develop, seek regulatory approvals for and commercialize sotagliflozin in markets outside the United States and Europe.

The company’s top line comprises product revenues from Inpefa, licensing and milestone revenues from LX9851, its obesity-focused asset partnered with Novo Nordisk (NVO - Free Report) and royalties from a previously commercialized product, Xermelo.

In 2020, Lexicon sold its commercial rights to Xermelo under an asset purchase and sale agreement to TerSera Therapeutics, receiving upfront payments while retaining certain ongoing royalty and milestone payment rights on Xermelo from TerSera Therapeutics.

The company is entering a catalyst-rich period, with several potentially transformative milestones expected across its cardiometabolic pipeline over the next 12 months.

Year to date, LXRX shares have surged 74.8% against the industry’s 1.7% decline.

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Sotagliflozin Becomes a Multi-Indication Growth Asset for LXRXLexicon is actively pursuing label expansion opportunities for sotagliflozin beyond its current heart failure indication. The company is enrolling patients in the pivotal phase III SONATA-HCM study evaluating sotagliflozin in hypertrophic cardiomyopathy (HCM), a chronic and progressive heart disease characterized by abnormal thickening of the heart muscle. Enrollment is expected to be completed in mid-2026, with top-line data anticipated in the first quarter of 2027. Positive clinical data could substantially increase investor confidence in the long-term growth trajectory of the drug.

Beyond HCM, LXRX is also pursuing approval of sotagliflozin for glycemic control in adults with type I diabetes (T1D) and remains on track for potential new drug application (NDA) resubmission and regulatory approval in 2026, subject to the successful completion of the ongoing STENO1 study and fulfillment of FDA data requirements. If approved, the company will market the drug under the brand name Zynquista.

To remind investors, Lexicon received a complete response letter from the FDA in 2019, which expressed concerns regarding the risk of diabetic ketoacidosis, a potentially serious complication associated with SGLT inhibitor use in patients with T1D. The agency requested additional data to better characterize the drug's safety profile and demonstrate that the benefits outweigh the risks.

NVO-LXRX Licensing Agreement to Boost Cash PositionLexicon entered into a licensing agreement withNovo Nordisk in 2025,under which the latter is developing LXRX’s LX9851, a first-in-class oral small-molecule inhibitor of acyl-CoA synthetase 5 for obesity and associated metabolic disorders. NVO initiated a phase I study in March 2026, which is expected to be completed in the first quarter of 2027. Per the licensing agreement, Lexicon has already received $55 million in upfront and milestone payments and remains eligible for up to $1 billion in additional development, regulatory and commercial milestones, along with tiered royalties on future sales.

Lexicon’s Another Pipeline Asset on the MoveAnother pipeline asset of Lexicon is pilavapadin (LX9211), an investigational oral, non-opioid therapy for diabetic peripheral neuropathic pain (DPNP). Following FDA clearance, the company plans to advance the candidate into phase III development. The primary endpoint will be the change in average daily pain score. If approved, pilavapadin would be the first oral, non-opioid therapy approved for neuropathic pain in more than 20 years. Lexicon is exploring strategic partnership opportunities to support the therapy's global development and commercialization.

Lexicon highlighted encouraging preclinical findings in March, suggesting that pilavapadin may have potential as a novel oral treatment for spasticity associated with conditions such as multiple sclerosis and spinal cord injury.

LXRX's Zacks Rank & EstimatesLexicon currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Over the past 30 days, estimates for LXRX’s loss per share have remained unchanged at 17 cents for 2026 and 24 cents for 2027.