Lexicon Pharmaceuticals (LXRX) 10-Q 2 May 24 2024 Q1 Quarterly report Financial data

Cover Page

Cover Page - shares	3 Months Ended
	Mar. 31, 2024	Apr. 29, 2024
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2024
Document Transition Report	false
Entity File Number	000-30111
Entity Registrant Name	Lexicon Pharmaceuticals, Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	76-0474169
Entity Address, Address Line One	2445 Technology Forest Blvd.
Entity Address, Address Line Two	11th Floor
Entity Address, City or Town	The Woodlands
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	77381
City Area Code	281
Local Phone Number	863-3000
Title of 12(b) Security	Common Stock, par value $0.001
Trading Symbol	LXRX
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		246,236,753
Document Fiscal Period Focus	Q1
Amendment Flag	false
Document Fiscal Year Focus	2024
Current Fiscal Year End Date	--12-31
Entity Central Index Key	0001062822

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Current assets:
Cash and cash equivalents	$ 96,494	$ 22,465
Short-term investments	259,104	147,561
Accounts receivable, net	1,526	1,010
Inventory	514	381
Prepaid expenses and other current assets	7,009	5,130
Total current assets	364,647	176,547
Property and equipment, net of accumulated depreciation and amortization of $4,682 and $4,538, respectively	1,843	1,987
Goodwill	44,543	44,543
Operating lease right-of-use-assets	5,358	5,524
Other assets	828	828
Total assets	417,219	229,429
Current liabilities:
Accounts payable	8,067	14,389
Accrued liabilities	15,332	17,157
Total current liabilities	23,399	31,546
Long-term debt, net	99,874	99,508
Long-term operating lease liabilities	5,079	5,265
Total liabilities	128,352	136,319
Commitments and contingencies (Note 6)
Stockholders’ Equity:
Series A Convertible preferred stock, 2,304,147 and no shares issued, respectively	23	0
Common stock, $0.001 par value; 300,000,000 shares authorized; 247,764,761 and 245,792,668 shares issued, respectively	248	245
Additional paid-in capital	2,108,497	1,862,558
Accumulated deficit	(1,815,236)	(1,766,839)
Accumulated other comprehensive income/(loss)	(50)	31
Treasury stock, at cost, 1,528,008 and 867,973 shares, respectively	(4,615)	(2,885)
Total stockholders’ equity	288,867	93,110
Total liabilities and stockholders’ equity	$ 417,219	$ 229,429

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Statement of Financial Position [Abstract]
Accumulated depreciation and amortization, property and equipment	$ 4,682	$ 4,538
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, authorized (in shares)	5,000,000,000	5,000,000,000
Preferred stock, issued (in shares)	2,304,147	0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, authorized (in shares)	300,000,000	300,000,000
Common stock, issued (in shares)	247,764,761	245,792,668
Treasury stock (in shares)	1,528,008	867,973

Condensed Consolidated Statemen

Condensed Consolidated Statements of Comprehensive Loss - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Revenues:
Net product revenue	$ 1,093	$ 0
Royalties and other revenue	37	24
Total revenues	1,130	24
Operating expenses:
Cost of sales	31	0
Research and development, including stock-based compensation of $1,594 and $1,203, respectively	14,372	12,026
Selling, general and administrative, including stock-based compensation of $2,708 and $2,212, respectively	32,060	19,140
Total operating expenses	46,463	31,166
Loss from operations	(45,333)	(31,142)
Interest and other expense	(4,948)	(1,821)
Interest income and other, net	1,884	1,029
Net loss	$ (48,397)	$ (31,934)
Net loss per common share, basic (usd per share)	$ (0.20)	$ (0.17)
Net loss per common share, diluted (usd per share)	$ (0.20)	$ (0.17)
Shares used in computing net loss per common share, basic	245,390	189,014
Shares used in computing net loss per common share, diluted	245,390	189,014
Other comprehensive loss:
Unrealized (loss) gain on investments	$ (81)	$ 265
Comprehensive loss	$ (48,478)	$ (31,669)

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Loss (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Stock-based compensation	$ 4,302	$ 3,415
Research and Development Expense
Stock-based compensation	1,594	1,203
Selling, General and Administrative Expenses
Stock-based compensation	$ 2,708	$ 2,212

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Stockholders’ Equity - USD ($) $ in Thousands	Total	Common Stock	Preferred Stock	Additional Paid-In Capital	Accumulated Deficit	Accumulated Other Comprehensive Gain (Loss)	Treasury Stock
Common stock beginning balance (in shares) at Dec. 31, 2022		189,214,000
Beginning balance at Dec. 31, 2022	$ 117,124	$ 189	$ 0	$ 1,709,144	$ (1,589,720)	$ (428)	$ (2,061)
Preferred stock beginning balance (in shares) at Dec. 31, 2022			0
Stock-based compensation	3,415			3,415
Issuance of common stock under Equity Incentive Plans (in shares)		1,216,000
Issuance of common stock under Equity Incentive Plans	0	$ 1		(1)
Repurchase of common stock	(824)						(824)
Net loss	(31,934)				(31,934)
Unrealized gain (loss) on investments	265					265
Common stock ending balance (in shares) at Mar. 31, 2023		190,430,000
Ending balance at Mar. 31, 2023	$ 88,046	$ 190	$ 0	1,712,558	(1,621,654)	(163)	(2,885)
Preferred stock ending balance (in shares) at Mar. 31, 2023			0
Common stock beginning balance (in shares) at Dec. 31, 2023	245,792,668	245,793,000
Beginning balance at Dec. 31, 2023	$ 93,110	$ 245	$ 0	1,862,558	(1,766,839)	31	(2,885)
Preferred stock beginning balance (in shares) at Dec. 31, 2023	0		0
Stock-based compensation		$ 4,302		4,302
Issuance of preferred stock, net of fees (in shares)			2,304,000
Issuance of preferred stock, net of fees	$ 241,575		$ 23	241,552
Issuance of common stock under Equity Incentive Plans (in shares)		1,972,000
Issuance of common stock under Equity Incentive Plans	88	$ 3		85
Repurchase of common stock	(1,730)						(1,730)
Net loss	(48,397)				(48,397)
Unrealized gain (loss) on investments	$ (81)					(81)
Common stock ending balance (in shares) at Mar. 31, 2024	247,764,761	247,765,000
Ending balance at Mar. 31, 2024	$ 288,867	$ 248	$ 23	$ 2,108,497	$ (1,815,236)	$ (50)	$ (4,615)
Preferred stock ending balance (in shares) at Mar. 31, 2024	2,304,147		2,304,000

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Cash flows from operating activities:
Net loss	$ (48,397)	$ (31,934)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	144	112
Stock-based compensation	4,302	3,415
Amortization of debt-related costs	517	265
Other non-cash adjustments	(226)	0
Changes in operating assets and liabilities:
Increase in accounts receivable	(516)	(234)
Increase in inventories	(133)	0
Increase in prepaid expenses and other current assets	(1,879)	(867)
Decrease in other long-term assets	166	400
Decrease in accounts payable and other liabilities	(9,108)	(2,770)
Net cash used in operating activities	(55,130)	(31,613)
Cash flows from investing activities:
Purchases of property and equipment	0	(248)
Purchases of investments	(183,224)	(28,864)
Maturities of investments	73,000	41,205
Net cash (used in) provided by investing activities	(110,224)	12,093
Cash flows from financing activities:
Proceeds from issuance of common stock for equity incentive plans	88	0
Proceeds from issuance of preferred stock, net of fees	241,425	0
Repurchase of common stock for equity incentive plans	(1,730)	(824)
Other	(400)	0
Net cash provided by (used in) financing activities	239,383	(824)
Net increase (decrease) in cash and cash equivalents	74,029	(20,344)
Cash and cash equivalents at beginning of period	22,465	46,345
Cash and cash equivalents at end of period	96,494	26,001
Supplemental disclosure of cash flow information:
Cash paid for interest	3,257	1,556
Supplemental disclosure of non-cash investing and financing activities:
Accrued financing costs	$ 150	$ 0

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2024
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies Basis of Presentation. The accompanying unaudited condensed consolidated financial statements of Lexicon Pharmaceuticals, Inc. (“Lexicon” or the “Company”) include the accounts of Lexicon and its wholly-owned subsidiaries. Intercompany transactions and balances are eliminated in consolidation. These unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. Operating results for the three month period ended March 31, 2024 are not necessarily indicative of the results that may be expected for the year ended December 31, 2024. For further information, refer to the financial statements and footnotes thereto included in Lexicon’s annual report on Form 10-K for the year ended December 31, 2023, as filed with the SEC. Use of Estimates. The preparation of financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the period. Actual results could differ from those estimates. Significant Accounting Policies. There have been no significant changes to our summary of significant policies discussed in our annual report on Form 10-K for the year ended December 31, 2023. Recent Accounting Pronouncements Issued But Not Yet Adopted . In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280) – Improvements to Reportable Segment Disclosures , which is effective retrospectively for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740) – Improvements to Income Tax Disclosures , which is effective prospectively for annual periods beginning after December 15, 2024. Early adoption is permitted for both standards. We do not expect these accounting pronouncements to have a material impact on our financial statements.

Cash and Cash Equivalents and I

Cash and Cash Equivalents and Investments	3 Months Ended
	Mar. 31, 2024
Cash, Cash Equivalents, and Short-Term Investments [Abstract]
Cash and Cash Equivalents and Investments	Cash and Cash Equivalents and Investments The fair value of cash and cash equivalents and investments held at March 31, 2024 and December 31, 2023 are as follows: As of March 31, 2024 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value (in thousands) Cash and cash equivalents $ 96,494 $ — $ — $ 96,494 Securities maturing within one year: U.S. treasury securities 245,145 9 (56) 245,098 Corporate debt securities 14,008 3 (5) 14,006 Total short-term investments $ 259,153 $ 12 $ (61) $ 259,104 Total cash and cash equivalents and investments $ 355,647 $ 12 $ (61) $ 355,598 As of December 31, 2023 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value (in thousands) Cash and cash equivalents $ 22,465 $ — $ — $ 22,465 Securities maturing within one year: U.S. treasury securities 141,577 31 (12) 141,596 Corporate debt securities 5,954 11 — 5,965 Total short-term investments $ 147,531 $ 42 $ (12) $ 147,561 Total cash and cash equivalents and investments $ 169,996 $ 42 $ (12) $ 170,026 As of March 31, 2024 and December 31, 2023, our investments in an unrealized loss position had an estimated fair value of $216.0 million and $58.5 million, respectively. There were no realized gains or losses during either of the three month periods ended March 31, 2024 and 2023.

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Mar. 31, 2024
Fair Value Disclosures [Abstract]
Fair Value Measurements	Fair Value Measurements The Company uses various inputs in determining the fair value of its investments and measures these assets on a recurring basis. Assets and liabilities recorded at fair value in the condensed consolidated balance sheets are categorized by the level of objectivity associated with the inputs used to measure their fair value. The following levels are directly related to the amount of subjectivity associated with the inputs to fair valuation of these assets and liabilities: • Level 1 - quoted prices in active markets for identical assets, which include U.S. treasury securities • Level 2 - other significant observable inputs (including quoted prices for similar investments, market corroborated inputs, etc.), which includes corporate debt securities • Level 3 - significant unobservable inputs The inputs or methodology used for valuing securities are not necessarily an indication of the credit risk associated with investing in those securities. The following tables provide the fair value measurements of applicable Company assets that are measured at fair value on a recurring basis according to the fair value levels defined above as of March 31, 2024 and December 31, 2023. There were no transfers between Level 1 and Level 2 during the periods presented. Assets at Fair Value as of March 31, 2024 Level 1 Level 2 Level 3 Total (in thousands) Cash and cash equivalents $ 96,494 $ — $ — $ 96,494 Short-term investments 245,098 14,006 — 259,104 Total cash and cash equivalents and investments $ 341,592 $ 14,006 $ — $ 355,598 Assets at Fair Value as of December 31, 2023 Level 1 Level 2 Level 3 Total (in thousands) Cash and cash equivalents $ 22,465 $ — $ — $ 22,465 Short-term investments 141,596 5,965 — 147,561 Total cash and cash equivalents and investments $ 164,061 $ 5,965 $ — $ 170,026

Supplemental Financial Informat

Supplemental Financial Information	3 Months Ended
	Mar. 31, 2024
Balance Sheet Related Disclosures [Abstract]
Supplemental Financial Information	Supplemental Financial Information The following tables show the Company’s additional balance sheet information as of March 31, 2024 and December 31, 2023: As of March 31, As of December 31, 2024 2023 (in thousands) Inventories: Raw materials $ — $ — Work-in-progress 84 100 Finished goods 430 281 Inventory $ 514 $ 381 As of March 31, As of December 31, 2024 2023 (in thousands) Accrued Liabilities: Accrued research and development services $ 3,688 $ 3,705 Accrued compensation and benefits 6,493 9,591 Short-term lease liability 1,291 1,291 Other 3,860 2,570 Total accrued liabilities $ 15,332 $ 17,157

Debt Obligations

Debt Obligations	3 Months Ended
	Mar. 31, 2024
Debt Disclosure [Abstract]
Debt Obligations	Debt Obligations Oxford Term Loans Overview. Lexicon and one of its subsidiaries entered into a loan and security agreement with Oxford Finance LLC (“Oxford”) in March 2022 (as subsequently amended) that provides up to $150 million in borrowing capacity (the “Oxford Term Loans”). The Oxford Term Loans are available in five tranches, each maturing in March 2027. The first two $25 million tranches totaling $50 million were funded in 2022 and the third $50 million tranche was funded in June 2023. The fourth $25 million tranche will be available for draw at Lexicon’s option upon the achievement of specified INPEFA net sales and until April 15, 2025. An unused fee will be due in the event Lexicon does not draw the full amount when available under the fourth tranche. The fifth $25 million tranche is available for draw at Lexicon’s option, subject to Oxford’s consent, at any time prior to the expiration of the interest-only period in March 2025 as described below. As of March 31, 2024, the carrying value of the Oxford Term Loans on the condensed consolidated balance sheet was $99.9 million, reflecting an unamortized discount of $6.1 million to the face value of long-term debt related to debt issuance costs, the final payment exit fee, and the warrant fair value described below, which are being amortized into interest and other expense throughout the life of the term loan using the effective interest rate method. A final payment exit fee of $6.0 million equal to 6% of the amount funded under the Oxford Term Loans is due upon prepayment or maturity. Oxford Warrants. Concurrent with the funding of each of the first three tranches, Lexicon granted Oxford warrants to purchase 420,673 shares of Lexicon’s common stock at an exercise price of $2.08 per share, 224,128 shares of Lexicon’s common stock at an exercise price of $1.95 per share and 183,824 shares of Lexicon’s common stock at an exercise price of $2.38 per share, respectively. Subject to and upon funding of the fourth tranche, Lexicon will grant Oxford a warrant to purchase shares of its common stock having a value equal to 1.75% of such tranche, as determined by reference to a 10-day average closing price of the shares, and having an exercise price equal to such average closing price. All warrants are exercisable for five years from their respective grant dates and feature a net cashless exercise provision. The Company allocated the proceeds from each term loan tranche to the corresponding warrant using the relative fair value method and used the Black-Scholes model to calculate the fair value of the warrants. These warrants reduced the carrying value of long-term debt and are classified as equity instruments in additional paid-in capital on the condensed consolidated balance sheet. Interest and Principal Payments. Monthly interest-only payments are due during an initial 36-month period from the original March 2022 borrowing date. The interest-only period will be followed by an amortization period extending through the maturity date. Payments of $34.8 million, $52.2 million, and $19.0 million, including debt principal and final exit fee payments, will be due during the fiscal years ended December 31, 2025, December 31, 2026 and December 31, 2027, respectively, with respect to all borrowed loan tranches as of March 31, 2024. Any prepayment of the Oxford Term Loans is subject to prepayment fees of up to 3% which decline over the three years following the funding date of each loan tranche. The Company has classified its debt as long-term based on its intent and ability to refinance with the recent equity financing (see Note 8) if the Company is unable to meet the financial covenants within one year. Prior to June 2023 the Oxford Term Loans bore interest at a floating rate equal to the 30-day U.S. Dollar LIBOR plus 7.90%, but not less than 8.01%, subject to additional interest if an event of default occurs and is continuing. Following the June 2023 amendment to the loan and security agreement, the floating interest rate is currently based on the sum of (a) the 1-month CME Term Secured Overnight Financing Rate (SOFR), (b) 0.10%, and (c) 7.90% for the first and second tranches and 7.00% for the third and fourth tranches. As of March 31, 2024, the weighted average interest rate of the Oxford Term Loans was 12.9%. During the three months ended March 31, 2024, the Company recognized interest expense of $3.8 million, including $0.5 million in amortization of discount and related debt issuance costs. Restrictive Provisions/Covenants. If an event of default occurs and is continuing, Oxford may declare all amounts outstanding under the loan and security agreement to be immediately due and payable. Additionally, Lexicon may prepay the Oxford Term Loans in whole at its option at any time. Lexicon’s obligations under the Oxford Term Loans are secured by a first lien security interest in all of the assets of the Company and its subsidiaries. The loan and security agreement contains certain customary representations and warranties, affirmative and negative covenants and events of default applicable to Lexicon and its subsidiaries. The loan and security agreement includes a financial covenant which requires Lexicon to maintain a minimum cash and investments balance of $10 million until the achievement of specified INPEFA net sales. Upon funding of the fourth tranche, the minimum cash and investments balance will increase to $25 million. The loan and security agreement also includes a separate financial covenant relating to net sales of INPEFA. In March 2024, this covenant was further amended and will be effective as of June 30, 2024. In addition to the financial covenants, additional covenants include those restricting dispositions, fundamental changes to its

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2024
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Operating Lease Obligations. Lexicon’s operating leases include leases of office space in The Woodlands, Texas and Bridgewater, New Jersey and will expire in August 2025 and January 2034, respectively. Operating lease right-of-use assets and associated lease liabilities are recorded in the condensed consolidated balance sheet at the lease commencement date based on the present value of future lease payments to be made over the expected lease term. As the implicit rate is not determinable in its leases, Lexicon uses its incremental borrowing rate based on the information available at the commencement date to determine the present value of lease payments. Lexicon does not apply this accounting to those leases with terms of twelve months or less. As of March 31, 2024 and December 31, 2023, the right-of-use assets for the office space leases of $5.4 million and $5.5 million, respectively, are separately included in operating lease right-of-use-assets in the condensed consolidated balance sheet. Current liabilities relating to the leases were included in accrued liabilities in the condensed consolidated balance sheet (as further described in Note 4) and long-term operating lease liabilities are separately included in the condensed consolidated balance sheet. During the three months ended March 31, 2024 and 2023, the Company incurred lease expense of $0.4 million. During the three months ended March 31, 2024 and 2023, the Company made cash payments for lease liabilities of $0.3 million and $0.1 million, respectively. As of March 31, 2024 and December 31, 2023, the weighted-average remaining lease terms were 8.9 years and 9 years, respectively, with weighted-average discount rates of 9.6%. The following table reconciles the undiscounted cash flows of the operating lease liability to the recorded lease liability at March 31, 2024: (in thousands) 2024 $ 1,036 2025 1,220 2026 865 2027 881 2028 898 Thereafter 4,746 Total undiscounted operating lease liability 9,646 Less: amount of lease payments representing interest (3,276) Present value of future lease payments 6,370 Less: short-term operating lease liability (1,291) Long-term operating lease liability $ 5,079 Legal Proceedings. Lexicon is from time to time party to claims and legal proceedings that arise in the normal course of its business and that it believes will not have, individually or in the aggregate, a material adverse effect on its results of operations, financial condition or liquidity.

Equity Incentive Awards

Equity Incentive Awards	3 Months Ended
	Mar. 31, 2024
Share-Based Payment Arrangement [Abstract]
Equity Incentive Awards	Equity Incentive Awards Stock-Based Compensation. The Company has stockholder-approved equity incentive plans that permit the grant of stock options, restricted stock unit awards, and other stock-based awards to employees, directors, and consultants of the Company. Compensation expense related to stock options and restricted stock units (“RSUs”) is determined based on the fair value of the award on the date of the grant and is recognized on a straight-line basis over the vesting period in which an employee is required to provide service. Compensation expense of $4.3 million and $3.4 million for the three months ended March 31, 2024 and 2023, respectively, is recorded separately in research and development expense and selling, general, and administrative expense as noted on the Company’s condensed consolidated statements of comprehensive loss. The fair value of stock options is estimated at the date of grant using the Black-Scholes method requiring the input of subjective assumptions. Because the Company’s employee stock options have characteristics significantly different from those of traded options, and because changes in the subjective input assumptions can materially affect the fair value estimate, in management’s opinion, the existing models do not necessarily provide a reliable single measure of the fair value of its employee stock options. For purposes of determining the fair value of stock options, the Company segregates its options into two homogeneous groups, based on exercise and post-vesting employment termination behaviors, resulting in different assumptions used for expected option lives. Historical data is used to estimate the expected option life for each group. Expected volatility is based on the historical volatility in the Company’s stock price. The following weighted-average assumptions were used for stock options granted in the three months ended March 31, 2024 and 2023: Expected Volatility Risk-free Interest Rate Expected Term Dividend March 31, 2024 Employees 96 % 4.3 % 4 — % Officers and non-employee directors 104 % 4.2 % 6 — % March 31, 2023 Employees 112 % 4.1 % 4 — % Officers and non-employee directors 98 % 3.9 % 6 — % The following is a summary of stock option activity under Lexicon’s stock-based compensation plans for the three months ended March 31, 2024: Stock Options Weighted Average Exercise Price (in thousands) Outstanding at December 31, 2023 18,705 $ 3.93 Granted 3,822 2.16 Exercised (51) 1.72 Expired (148) 12.04 Forfeited (670) 2.21 Outstanding at March 31, 2024 21,658 3.62 Exercisable at March 31, 2024 9,631 $ 5.03 The following is a summary of restricted stock unit activity under Lexicon’s stock-based compensation plans for the three months ended March 31, 2024: RSU’s Weighted Average Grant Date (in thousands) Outstanding at December 31, 2023 5,015 $ 2.78 Granted 8,270 2.15 Vested (1,921) 3.12 Forfeited (297) 2.32 Outstanding at March 31, 2024 11,067 $ 2.26

Other Capital Agreements

Other Capital Agreements	3 Months Ended
	Mar. 31, 2024
Equity [Abstract]
Other Capital Agreements	Other Capital Agreements Convertible Preferred Stock. On March 11, 2024, Lexicon entered into an agreement with certain accredited investors pursuant to which the Company agreed to sell 2,304,147 shares of its Series A Convertible Preferred Stock, par value $0.01 per share, in a private placement at a price of $108.50 per share. The Company received net proceeds of approximately $242 million, after deducting placement agent fees and offering expenses from the private placement offering. Each share of preferred stock is convertible into 50 shares of common stock following the approvals listed below. An affiliate of Invus, L.P. elected to participate on the same terms as each other purchaser on a pro rata basis and also agreed to vote at the Company’s 2024 annual meeting of stockholders in favor of the approval of an amendment to the Company’s certificate of incorporation increasing the total authorized common shares thereunder from 300,000,000 to 450,000,000 shares (the “New Charter”).

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Pay vs Performance Disclosure
Net loss	$ (48,397)	$ (31,934)

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended
	Mar. 31, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2024
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation.
Use of Estimates	Use of Estimates. The preparation of financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the period. Actual results could differ from those estimates.
Significant Accounting Policies	Significant Accounting Policies. There have been no significant changes to our summary of significant policies discussed in our annual report on Form 10-K for the year ended December 31, 2023.
Recent Accounting Pronouncements Issued But Not Yet Adopted	Recent Accounting Pronouncements Issued But Not Yet Adopted . In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280) – Improvements to Reportable Segment Disclosures , which is effective retrospectively for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740) – Improvements to Income Tax Disclosures , which is effective prospectively for annual periods beginning after December 15, 2024. Early adoption is permitted for both standards. We do not expect these accounting pronouncements to have a material impact on our financial statements.

Cash and Cash Equivalents and_2

Cash and Cash Equivalents and Investments (Tables)	3 Months Ended
	Mar. 31, 2024
Cash, Cash Equivalents, and Short-Term Investments [Abstract]
Schedule of Cash, Cash Equivalents and Short-term Investments	The fair value of cash and cash equivalents and investments held at March 31, 2024 and December 31, 2023 are as follows: As of March 31, 2024 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value (in thousands) Cash and cash equivalents $ 96,494 $ — $ — $ 96,494 Securities maturing within one year: U.S. treasury securities 245,145 9 (56) 245,098 Corporate debt securities 14,008 3 (5) 14,006 Total short-term investments $ 259,153 $ 12 $ (61) $ 259,104 Total cash and cash equivalents and investments $ 355,647 $ 12 $ (61) $ 355,598 As of December 31, 2023 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value (in thousands) Cash and cash equivalents $ 22,465 $ — $ — $ 22,465 Securities maturing within one year: U.S. treasury securities 141,577 31 (12) 141,596 Corporate debt securities 5,954 11 — 5,965 Total short-term investments $ 147,531 $ 42 $ (12) $ 147,561 Total cash and cash equivalents and investments $ 169,996 $ 42 $ (12) $ 170,026

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
	Mar. 31, 2024
Fair Value Disclosures [Abstract]
Summary of Fair Value Measurements	The following tables provide the fair value measurements of applicable Company assets that are measured at fair value on a recurring basis according to the fair value levels defined above as of March 31, 2024 and December 31, 2023. There were no transfers between Level 1 and Level 2 during the periods presented. Assets at Fair Value as of March 31, 2024 Level 1 Level 2 Level 3 Total (in thousands) Cash and cash equivalents $ 96,494 $ — $ — $ 96,494 Short-term investments 245,098 14,006 — 259,104 Total cash and cash equivalents and investments $ 341,592 $ 14,006 $ — $ 355,598 Assets at Fair Value as of December 31, 2023 Level 1 Level 2 Level 3 Total (in thousands) Cash and cash equivalents $ 22,465 $ — $ — $ 22,465 Short-term investments 141,596 5,965 — 147,561 Total cash and cash equivalents and investments $ 164,061 $ 5,965 $ — $ 170,026

Supplemental Financial Inform_2

Supplemental Financial Information (Tables)	3 Months Ended
	Mar. 31, 2024
Balance Sheet Related Disclosures [Abstract]
Schedule of Inventory, Current	The following tables show the Company’s additional balance sheet information as of March 31, 2024 and December 31, 2023: As of March 31, As of December 31, 2024 2023 (in thousands) Inventories: Raw materials $ — $ — Work-in-progress 84 100 Finished goods 430 281 Inventory $ 514 $ 381
Schedule of Accrued Liabilities	As of March 31, As of December 31, 2024 2023 (in thousands) Accrued Liabilities: Accrued research and development services $ 3,688 $ 3,705 Accrued compensation and benefits 6,493 9,591 Short-term lease liability 1,291 1,291 Other 3,860 2,570 Total accrued liabilities $ 15,332 $ 17,157

Commitment and Contingencies (T

Commitment and Contingencies (Tables)	3 Months Ended
	Mar. 31, 2024
Commitments and Contingencies Disclosure [Abstract]
Lessee, Operating Lease, Liability, to be Paid, Maturity	The following table reconciles the undiscounted cash flows of the operating lease liability to the recorded lease liability at March 31, 2024: (in thousands) 2024 $ 1,036 2025 1,220 2026 865 2027 881 2028 898 Thereafter 4,746 Total undiscounted operating lease liability 9,646 Less: amount of lease payments representing interest (3,276) Present value of future lease payments 6,370 Less: short-term operating lease liability (1,291) Long-term operating lease liability $ 5,079

Equity Incentive Awards (Tables

Equity Incentive Awards (Tables)	3 Months Ended
	Mar. 31, 2024
Share-Based Payment Arrangement [Abstract]
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions	The following weighted-average assumptions were used for stock options granted in the three months ended March 31, 2024 and 2023: Expected Volatility Risk-free Interest Rate Expected Term Dividend March 31, 2024 Employees 96 % 4.3 % 4 — % Officers and non-employee directors 104 % 4.2 % 6 — % March 31, 2023 Employees 112 % 4.1 % 4 — % Officers and non-employee directors 98 % 3.9 % 6 — %
Share-based Payment Arrangement, Option, Activity	The following is a summary of stock option activity under Lexicon’s stock-based compensation plans for the three months ended March 31, 2024: Stock Options Weighted Average Exercise Price (in thousands) Outstanding at December 31, 2023 18,705 $ 3.93 Granted 3,822 2.16 Exercised (51) 1.72 Expired (148) 12.04 Forfeited (670) 2.21 Outstanding at March 31, 2024 21,658 3.62 Exercisable at March 31, 2024 9,631 $ 5.03
Schedule of Nonvested Restricted Stock Units Activity	The following is a summary of restricted stock unit activity under Lexicon’s stock-based compensation plans for the three months ended March 31, 2024: RSU’s Weighted Average Grant Date (in thousands) Outstanding at December 31, 2023 5,015 $ 2.78 Granted 8,270 2.15 Vested (1,921) 3.12 Forfeited (297) 2.32 Outstanding at March 31, 2024 11,067 $ 2.26

Cash and Cash Equivalents and_3

Cash and Cash Equivalents and Investments - Schedule of Cash and Cash Equivalents and Investments (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Fair Value
Estimated Fair Value	$ 259,104	$ 147,561
Cash and cash equivalents
Fair Value
Amortized Cost	96,494	22,465
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	0
Estimated Fair Value	96,494	22,465
Total short-term investments
Fair Value
Amortized Cost	259,153	147,531
Gross Unrealized Gains	12	42
Gross Unrealized Losses	(61)	(12)
Estimated Fair Value	259,104	147,561
U.S. treasury securities
Fair Value
Amortized Cost	245,145	141,577
Gross Unrealized Gains	9	31
Gross Unrealized Losses	(56)	(12)
Estimated Fair Value	245,098	141,596
Corporate debt securities
Fair Value
Amortized Cost	14,008	5,954
Gross Unrealized Gains	3	11
Gross Unrealized Losses	(5)	0
Estimated Fair Value	14,006	5,965
Total cash and cash equivalents and investments
Fair Value
Amortized Cost	355,647	169,996
Gross Unrealized Gains	12	42
Gross Unrealized Losses	(61)	(12)
Estimated Fair Value	$ 355,598	$ 170,026

Cash and Cash Equivalents and_4

Cash and Cash Equivalents and Investments - Narrative (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Cash, Cash Equivalents, and Short-Term Investments [Abstract]
Investments in an unrealized loss position, fair value	$ 216		$ 58.5
Realized gains (losses)	$ 0	$ 0

Fair Value Measurements (Detail

Fair Value Measurements (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Fair Value
Cash and cash equivalents	$ 96,494	$ 22,465
Short-term investments	259,104	147,561
Total cash and cash equivalents and investments	355,598	170,026
Level 1
Fair Value
Cash and cash equivalents	96,494	22,465
Short-term investments	245,098	141,596
Total cash and cash equivalents and investments	341,592	164,061
Level 2
Fair Value
Cash and cash equivalents	0	0
Short-term investments	14,006	5,965
Total cash and cash equivalents and investments	14,006	5,965
Level 3
Fair Value
Cash and cash equivalents	0	0
Short-term investments	0	0
Total cash and cash equivalents and investments	$ 0	$ 0

Supplemental Financial Inform_3

Supplemental Financial Information (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Inventories:
Raw materials	$ 0	$ 0
Work-in-progress	84	100
Finished goods	430	281
Inventory	514	381
Accrued Liabilities:
Accrued research and development services	3,688	3,705
Accrued compensation and benefits	6,493	9,591
Short-term lease liability	1,291	1,291
Other	3,860	2,570
Total accrued liabilities	$ 15,332	$ 17,157

Debt Obligations (Details)

Debt Obligations (Details)		1 Months Ended	3 Months Ended	12 Months Ended
	May 31, 2023	Jun. 30, 2023 USD ($) $ / shares Rate shares	Mar. 31, 2024 USD ($) d Rate	Dec. 31, 2027 USD ($)	Dec. 31, 2026 USD ($)	Dec. 31, 2025 USD ($)	Dec. 31, 2023 USD ($)	Dec. 31, 2022 USD ($) $ / shares shares	Mar. 31, 2022 USD ($) $ / shares shares
Line of Credit Facility [Line Items]
Long-term debt, net			$ 99,874,000				$ 99,508,000
Term Loan | Oxford Finance LLC Term Loans | Line of Credit
Line of Credit Facility [Line Items]
Term loan borrowing capacity									$ 150,000,000
Unamortized discount on debt			6,100,000
Exit fee amount			$ 6,000,000
Exit fee percentage | Rate			6%
Term for exercise of warrants			5 years
Prepayment fee percentage			3%
Covenant compliance period			1 year
Weighted average interest rate	8.01%		12.90%
Incremental interest rate | Rate		0.10%
Interest expense			$ (3,800,000)
Amortization of discount and related debt costs			500,000
Minimum required cash and investments balance			10,000,000
Term Loan | Oxford Finance LLC Term Loans | Line of Credit | Forecast
Line of Credit Facility [Line Items]
Debt payments				$ 19,000,000	$ 52,200,000	$ 34,800,000
Term Loan | Oxford Finance LLC Term Loans | Line of Credit | LIBOR
Line of Credit Facility [Line Items]
Basis spread on variable rate	7.90%
Term Loan | Oxford Finance LLC Term Loans | Line of Credit | First Tranche
Line of Credit Facility [Line Items]
Term loan funded									$ 25,000,000
Warrants outstanding (in shares) | shares									420,673
Exercise price of warrants (in dollars per share) | $ / shares									$ 2.08
Term Loan | Oxford Finance LLC Term Loans | Line of Credit | First Tranche | Secured Overnight Financing Rate (SOFR)
Line of Credit Facility [Line Items]
Basis spread on variable rate		7.90%
Term Loan | Oxford Finance LLC Term Loans | Line of Credit | Second Tranche
Line of Credit Facility [Line Items]
Term loan funded								$ 25,000,000
Warrants outstanding (in shares) | shares								224,128
Exercise price of warrants (in dollars per share) | $ / shares								$ 1.95
Term Loan | Oxford Finance LLC Term Loans | Line of Credit | Second Tranche | Secured Overnight Financing Rate (SOFR)
Line of Credit Facility [Line Items]
Basis spread on variable rate		7.90%
Term Loan | Oxford Finance LLC Term Loans | Line of Credit | Third tranche
Line of Credit Facility [Line Items]
Term loan funded		$ 50,000,000
Warrants outstanding (in shares) | shares		183,824
Exercise price of warrants (in dollars per share) | $ / shares		$ 2.38
Term Loan | Oxford Finance LLC Term Loans | Line of Credit | Third tranche | Secured Overnight Financing Rate (SOFR)
Line of Credit Facility [Line Items]
Basis spread on variable rate | Rate		7%
Term Loan | Oxford Finance LLC Term Loans | Line of Credit | Fourth Tranche
Line of Credit Facility [Line Items]
Remaining term loan funding			$ 25,000,000
Warrant percentage of fourth tranche | Rate			1.75%
Number of days to determine average closing price of warrant shares | d			10
Minimum required cash and investments balance			$ 25,000,000
Term Loan | Oxford Finance LLC Term Loans | Line of Credit | Fourth Tranche | Secured Overnight Financing Rate (SOFR)
Line of Credit Facility [Line Items]
Basis spread on variable rate | Rate		7%
Term Loan | Oxford Finance LLC Term Loans | Line of Credit | Fifth Tranche
Line of Credit Facility [Line Items]
Remaining term loan funding			$ 25,000,000
Term Loan | Oxford Finance LLC Term Loans | Line of Credit | Debt Instrument Redemption Period One and Two
Line of Credit Facility [Line Items]
Term loan funded								$ 50,000,000

Commitments and Contingencies (

Commitments and Contingencies (Details 1) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Commitments and Contingencies Disclosure [Abstract]
Operating lease right-of-use-assets	$ 5,358		$ 5,524
Operating Lease, expense	400	$ 400
Payments for rent	$ 300	$ 100
Weighted-average remaining lease terms	8 years 10 months 24 days		9 years
Weighted-average discount rates	9.60%

Commitments and Contingencies_2

Commitments and Contingencies (Details 2) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Commitments and Contingencies Disclosure [Abstract]
2024	$ 1,036
2025	1,220
2026	865
2027	881
2028	898
Thereafter	4,746
Total undiscounted operating lease liability	9,646
Less: amount of lease payments representing interest	(3,276)
Present value of future lease payments	6,370
Less: short-term operating lease liability	(1,291)	$ (1,291)
Long-term operating lease liabilities	$ 5,079	$ 5,265

Equity Incentive Awards - Narra

Equity Incentive Awards - Narrative (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Share-Based Payment Arrangement [Abstract]
Share-Based Payment Arrangement, Expense	$ 4.3	$ 3.4

Equity Incentive Awards - Summa

Equity Incentive Awards - Summary of Weighted-Average Stock Options Assumptions (Details) - Stock Options	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Employees
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected Volatility	96%	112%
Risk-free Interest Rate	4.30%	4.10%
Expected Term	4 years	4 years
Dividend Rate	0%	0%
Officers and non-employee directors
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected Volatility	104%	98%
Risk-free Interest Rate	4.20%	3.90%
Expected Term	6 years	6 years
Dividend Rate	0%	0%

Equity Incentive Awards - Sum_2

Equity Incentive Awards - Summary of Stock Option Activity (Details) - Stock Options shares in Thousands	3 Months Ended
	Mar. 31, 2024 $ / shares shares
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding [Roll Forward]
Outstanding at beginning of period (in shares) | shares	18,705
Granted (in shares) | shares	3,822
Exercised (in shares) | shares	(51)
Expired (in shares) | shares	(148)
Forfeited (in shares) | shares	(670)
Outstanding at end of period (in shares) | shares	21,658
Exercisable (in shares) | shares	9,631
Weighted Average Exercise Price
Outstanding at beginning of period (in dollars per share) | $ / shares	$ 3.93
Granted (in dollars per share) | $ / shares	2.16
Exercised (in dollars per share) | $ / shares	1.72
Expired (in dollars per share) | $ / shares	12.04
Forfeited (in dollars per share) | $ / shares	2.21
Outstanding at end of period (in dollars per share) | $ / shares	3.62
Exercisable (in dollars per share) | $ / shares	$ 5.03

Equity Incentive Awards - Sum_3

Equity Incentive Awards - Summary of Restricted Stock Units Activity (Details) - RSU’s shares in Thousands	3 Months Ended
	Mar. 31, 2024 $ / shares shares
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Outstanding at beginning of period (in shares) | shares	5,015
Granted (in shares) | shares	8,270
Vested (in shares) | shares	(1,921)
Forfeited (in shares) | shares	(297)
Outstanding at end of period (in shares) | shares	11,067
Weighted Average Grant Date Fair Value
Outstanding at beginning of period (in dollars per share) | $ / shares	$ 2.78
Granted (in dollars per share) | $ / shares	2.15
Vested (in dollars per share) | $ / shares	3.12
Forfeited (in dollars per share) | $ / shares	2.32
Outstanding at end of period (in dollars per share) | $ / shares	$ 2.26

Other Capital Agreements (Detai

Other Capital Agreements (Details) - USD ($) $ / shares in Units, $ in Millions	Mar. 11, 2024	Mar. 31, 2024	Dec. 31, 2023
Class of Stock [Line Items]
Preferred stock, par value (in dollars per share)		$ 0.01	$ 0.01
Common stock, authorized (in shares)	450,000,000	300,000,000	300,000,000
Private Placement
Class of Stock [Line Items]
Net proceeds from sale of stock	$ 242
Number of common stock shares issued for each preferred stock share upon conversion	50
Shares issuable	115,000,000
Series A Preferred Stock | Private Placement
Class of Stock [Line Items]
Shares sold	2,304,147
Preferred stock, par value (in dollars per share)	$ 0.01
Price per share (usd per share)	$ 108.50