Lexicon Pharmaceuticals, Inc. Q1 FY2026 earnings call

• Revenue for Q1 included $10 million milestones from Novo Nordisk Licensing Agreement. - Operating expenses decreased by $4.8 million quarter over quarter due to operational discipline and strategic repositioning. - Reaffirmed full year 2026 operating expense outlook. - Announced $100 million debt facility with Hercules Capital, with initial $55 million tranche used to repay existing loan. - Mentioned pivotal 2026 for Lexicon with significant milestones ahead, positive on HCM, T1D, pilavapidin, and LX9851 progress.

Total revenues for the first quarter of 2026 were $21.1 million. Revenues included two $10 million milestones from the Novo Nordisk Agreement and net sales of MPEFA of $1.1 million. Research and development expenses were $12.8 million, selling, general, and administrative expenses were $9.2 million. Net loss was $1.0 million. Cash, cash equivalents, etc. as of March 31st, 2026 was $199.7 million, debt was $49.7 million. Revenue contribution: Milestones from Novo Nordisk Agreement contributed significantly, with net sales of MPEFA making up a smaller portion.

• Reaffirmed full year 2026 outlook for operating expenses. - Announced $100 million debt facility with Hercules Capital with specific tranche details. - Highlighted financial accomplishments in 2026 including capital raise in February and new loan facility, strengthening balance sheet and financial flexibility.

Q: Given the Acacia data in non-obstructive without Campton, how does that make you feel about own Sonata phase three and potential differentiation?

A: Excited about HCM field, confident in Sotagliflozin's benefit-risk profile, see Sonata as strong in non-obstructive with once-a-day oral dosing and benefit-risk.

Q: What percent of enrollment in Phase 3 Sonata HCM study completed, split in enrollment between obstructive and non-obstructive, risk of too many non-obstructive?

A: Haven't given exact enrollment numbers, reaffirmed timelines, enrolling significant numbers of both, no risk of too many yet as need larger in non-obstructive.

Q: At time of enrollment completion in mid 2026, potential to unveil baseline demographics, how Sonata's patient population looks to Acacia's recent readout, clinically meaningful difference in KCCQ and what powered Sonata on this endpoint?

A: Not finalized info on release at enrollment, patient population similar to Odyssey reported, clinically meaningful KCCQ is 4 - 5, powered trial based on that range