Lexicon Pharmaceuticals is a biopharmaceutical company focused on developing breakthrough treatments for human disease. Lexicon has clinical-stage drug programs for diabetes and carcinoid syndrome in progress. The company was founded in 1995 and is based in The Woodlands, Texas.
LXRX Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Lexicon Pharmaceuticals Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Lexicon Pharmaceuticals Inc ranked in the 75th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 288.67% on a DCF basis. As for the metrics that stood out in our discounted cash flow analysis of Lexicon Pharmaceuticals Inc, consider:
In the past 4.13 years, Lexicon Pharmaceuticals Inc has a compound free cash flow growth rate of -0.1%; that's better than only 10.17% of cash flow producing equities in the Healthcare sector, where it is classified.
Lexicon Pharmaceuticals Inc's weighted average cost of capital (WACC) is 6%; for context, that number is higher than merely 3.78% of tickers in our DCF set.
Lexicon Pharmaceuticals Inc's effective tax rate, as measured by taxes paid relative to net income, is at 0 -- greater than merely 0% of US stocks with positive free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
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The audio webcast for this conference will be available in the “Events” section of the Lexicon website at www.lexpharma.com/. Through the precise targeting of these proteins, Lexicon is pioneering the discovery and development of innovative medicines to safely and effectively treat disease. In addition to its first commercial product, XERMELO, Lexicon has a pipeline of promising drug candidates in clinical and preclinical development in diabetes and metabolism, oncology and neuropathic pain.
Lexicon Pharmaceuticals, Inc. (LXRX), announced today additional data on XERMELO’s® (telotristat ethyl) antiproliferative effects against cultured liposarcoma, colon cancer and cholangiocarcinoma cell lines that were published online in conjunction with the American Society of Clinical Oncology (ASCO) 2020 annual meeting (May 29 - June 2, 2020). XERMELO is approved for the treatment of carcinoid syndrome diarrhea in combination with somatostatin analog (SSA) therapy in adults inadequately controlled by SSA therapy, but is not currently approved for any other use.
Lexicon Pharmaceuticals (LXRX) Q1 2020 earnings call dated Apr. 27, 2020 Corporate Participants: Kimberly Lee — Head of Investor Relations and Corporate Strategy Lonnel Coats — President and Chief Executive Officer and Director Pablo Lapuerta — Executive Vice President and Chief Medical Officer Jeffrey L. Wade — Executive Vice President, Corporate and Administrative Affairs and Chief Financial Officer Presentation: Operator Ladies and gentlemen, […]