Lexicon Pharmaceuticals stock maintains Buy rating at H.C. Wainwright

Published 11/09/2025, 12:40
Lexicon Pharmaceuticals stock maintains Buy rating at H.C. Wainwright

Investing.com - H.C. Wainwright has reiterated its Buy rating and $4.00 price target on Lexicon Pharmaceuticals (NASDAQ:LXRX), representing significant upside from the current price of $1.08, following the company’s presentation of new preclinical data at the International Congress on Neuropathic Pain 2025. According to InvestingPro data, analyst targets range from $0.85 to $6.00, reflecting mixed views on the company’s potential.

The preclinical data demonstrated that pilavapadin, Lexicon’s non-opioid therapeutic candidate, reduced neuropathic pain in animal models of chemotherapy-induced neuropathic pain and multiple sclerosis. These findings validate the role of adaptor-associated kinase 1 as a regulator of pain signaling. With a market capitalization of $392 million and strong liquidity position, InvestingPro analysis shows Lexicon holds more cash than debt, though it’s currently burning through cash reserves.

H.C. Wainwright noted that pilavapadin appears to align with the FDA’s draft guidance published on September 10, 2025, which encourages the development of non-opioid treatments that address multiple chronic pain conditions rather than individual indications. The stock has shown strong momentum, with InvestingPro data revealing a remarkable 201% price return over the past six months, though the company remains unprofitable with a negative EBITDA of $105.47 million in the last twelve months.

Chemotherapy-induced neuropathic pain affects up to 68% of patients during treatment, while 50-75% of multiple sclerosis patients experience neuropathic pain characterized by burning sensations, sharp shooting pain, and hypersensitivity to stimuli.

The research firm’s analysis follows Lexicon’s favorable topline results from its Phase 2b PROGRESS dose-optimization trial in diabetic peripheral neuropathic pain, with Phase 3 trials expected to begin in 2025.

In other recent news, Lexicon Pharmaceuticals reported a surprising earnings beat for Q2 2025, with earnings per share reaching $0.01, surpassing expectations of a $0.09 loss. The company’s revenue also saw a significant increase to $28.9 million, driven by substantial licensing revenue from Novo Nordisk, far exceeding the anticipated $6.49 million. Additionally, Lexicon has submitted new clinical data to the U.S. Food and Drug Administration regarding its potential diabetes drug, Zynquista, which is being evaluated as an adjunct to insulin for type 1 diabetes. This submission includes data from three ongoing third-party funded studies.

In related developments, H.C. Wainwright reiterated its Buy rating for Lexicon Pharmaceuticals with a price target of $4.00, following a presentation at the European Society of Cardiology Congress 2025. The presentation highlighted the efficacy of sotagliflozin in older heart failure patients. Meanwhile, Jefferies raised its price target for the company to $0.85 from $0.70, maintaining a Hold rating. Jefferies noted an upcoming meeting with the FDA to discuss oral pilavapadin for diabetic peripheral neuropathy pain, a potential billion-dollar market opportunity.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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