Lexicon Pharmaceuticals (LXRX) and Novo Nordisk have begun a Phase 1 clinical trial of LX9851, a first‑in‑class oral ACSL5 inhibitor designed to treat obesity. The study will enroll 96 overweight or obese adults and will assess safety, tolerability, pharmacokinetics and pharmacodynamics, with results expected in the first quarter of 2027.
Under the exclusive license signed in March 2025, Lexicon received a second $10 million milestone payment in 2026 for meeting initial dosing requirements in the Phase 1 study. The company is eligible for a third $10 million milestone later this year, and the partnership could generate up to $1 billion in total upfront and milestone payments, plus tiered royalties on net sales of LX9851.
Lexicon’s financial position has strengthened in the wake of the milestone. Q4 2025 revenue rose to $5.5 million, driven by $4.3 million from the Novo Nordisk agreement and $1.1 million from INPEFA sales, compared with $3.92 million in Q4 2024. Net loss narrowed to $15.5 million ($0.04 per share) from $33.8 million ($0.09 per share) the prior year, and the company ended 2025 with $125.2 million in cash, bolstered by equity proceeds and the milestone payment. Management has guided 2026 operating expenses to $100–$110 million, reflecting disciplined cost control as the partnership progresses.
Novo Nordisk’s obesity strategy now includes LX9851 alongside its flagship Wegovy and other pipeline candidates such as CagriSema and UBT251. LX9851’s oral, non‑incretin mechanism offers a distinct therapeutic option and may complement semaglutide, potentially extending weight‑loss durability and addressing a broader patient population.
Mike Exton, CEO of Lexicon, said the partnership “has recognized the significant potential for LX9851, a novel, oral candidate for obesity, and has moved swiftly to advance the program in its pipeline. We believe LX9851 has the potential to become a differentiated approach in the next phase of treatments for obesity and metabolic disease.” Jacob Sten Petersen, Senior Vice President and Head of Global Research at Novo Nordisk, added that “LX9851 offers a novel approach to the treatment of obesity and related metabolic conditions. It is an important addition to our pipeline of potential treatment options as we look to meet the diverse needs of people living with obesity, diabetes and their associated comorbidities.”
Investors have responded positively to the announcement, reflecting confidence in the partnership’s potential to generate future milestone payments and royalties for Lexicon and to broaden Novo Nordisk’s obesity portfolio.
revised_sentiment_rating":5} }
The content on EveryTicker is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.