0001062822-23-000047 | 10-Q | XBRL Viewer | Lexicon Pharmaceuticals INC

Other Capital Agreements	6 Months Ended
Other Capital Agreements	Jun. 30, 2023
Equity [Abstract]
Unusual or Infrequent Items, or Both, Disclosure	Other Capital Agreements Common Stock: In May 2023, Lexicon sold an aggregate of 55,288,460 shares of its common stock at a price of $2.60 per share in a public offering and concurrent private placement to an affiliate of Invus, L.P., resulting in net proceeds of approximately $139.0 million, after deducting underwriting discounts and commissions and offering expenses.

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Cash flows from operating activities:
Net loss	$ (76,838)	$ (48,063)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	256	216
Stock-based compensation	7,230	5,604
Amortization of debt issuance costs	538	179
Changes in operating assets and liabilities:
(Increase) decrease in accounts receivable	(657)	(20)
(Increase) decrease in inventory	(172)	0
(Increase) decrease in prepaid expenses and other current assets	(3,643)	(732)
Decrease in other assets	561	420
Decrease in accounts payable and other liabilities	2,995	(5,447)
Net cash provided by (used in) operating activities	(69,730)	(47,843)
Cash flows from investing activities:
Purchases of property and equipment	(387)	(76)
Purchases of investments	(150,998)	(40,171)
Maturities of investments	88,870	22,191
Net cash (used in) provided by investing activities	(62,515)	(18,056)
Cash flows from financing activities:
Proceeds from issuance of common stock	139,034	0
Repurchase of common stock	(824)	(864)
Proceeds from debt borrowings, net of fees	49,961	24,148
Net cash used in financing activities	188,171	23,284
Net increase (decrease) in cash and cash equivalents	55,926	(42,615)
Cash and cash equivalents at beginning of period	46,345	64,065
Cash and cash equivalents at end of period	102,271	21,450
Supplemental disclosure of cash flow information:
Cash paid for interest	3,314	634
Adjustments to Additional Paid in Capital, Warrant Issued	307	698
Stock Issued During Period, Value, Treasury Stock Reissued	$ 0	$ (6,321)

Compensation Related Costs, Share Based Payments (Policies)	6 Months Ended
	Jun. 30, 2023
Share-Based Payment Arrangement [Abstract]
Share-based Payment Arrangement [Policy Text Block]	Stock-Based Compensation: The Company recognizes compensation expense in its condensed consolidated statements of comprehensive loss for share-based payments, including stock options and restricted stock units (RSUs) granted to employees, based on their fair values on the date of the grant, with the compensation expense recognized on a straight-line basis over the period in which an employee is required to provide service in exchange for the stock award.

- Definition

Disclosure of accounting policy for award under share-based payment arrangement. Includes, but is not limited to, methodology and assumption used in measuring cost.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (f)(2)(i)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (f)(2)(ii)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (f)(2)(v)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SAB Topic 14.C.Q3)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479830/718-10-S99-1

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SAB Topic 14.D.1.Q5)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479830/718-10-S99-1

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SAB Topic 14.D.3.Q2)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479830/718-10-S99-1

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SAB Topic 14.D.2.Q6)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479830/718-10-S99-1

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org//718/tableOfContent

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (f)(1)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (f)(2)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

+ Details

Summary of Significant Accounting Policies (Details 1) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Accrued Liabilities [Line Items]
Accrued research and development services current	$ 6,071	$ 3,252
Accrued compensation and benefits current	7,566	7,830
Operating Lease, Liability, Current	(1,291)	(1,291)
Other Accrued Liabilities, Current	680	404
Accrued Liabilities	$ 15,608	$ 12,777

Debt Obligations	6 Months Ended
Debt Obligations	Jun. 30, 2023
Debt Obligations [Abstract]
Debt Disclosure	Debt Obligations Oxford Term Loans. In March 2022, Lexicon and one of its subsidiaries entered into a loan and security agreement with Oxford Finance LLC (“Oxford”) that provides up to $150 million in borrowing capacity (the “Oxford Term Loans”). The loan and security agreement was subsequently amended in August 2022, May 2023 and June 2023. The Oxford Term Loans are available in five tranches, each maturing in March 2027. The first $25 million tranche was funded in March 2022, the second $25 million tranche was funded in December 2022 and the third $50 million tranche was funded on June 28, 2023. The fourth $25 million tranche is available for draw at Lexicon’s option between December 1 and December 31, 2023. 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 as described below. An unused fee will be due in the event Lexicon does not draw the full amount available under the fourth tranche. A final payment exit fee equal to 6% of the amount funded under the Oxford Term Loans is due upon prepayment or maturity, which final payment will be adjusted to 7% of the amount funded upon extension of the interest-only payment period. The final payment exit fee of $6.0 million as of June 30, 2023, in the aggregate for the three borrowed tranches, is recorded as a debt discount on the condensed consolidated balance sheet. 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. The warrants that have been issued in connection with the funding of each tranche reduced the carrying value of long-term debt and are separately classified as equity instruments on the condensed consolidated balance sheet. As of June 30, 2023, the carrying value of the Oxford Term Loans on the condensed consolidated balance sheet was $98.8 million, reflecting as a discount of $7.2 million to the face value of long-term debt for the final payment exit fee, the warrant fair value, and debt issuance costs, which are being amortized into interest expense throughout the life of the term loan using the effective interest rate method. Monthly interest-only payments are due during an initial 36-month period from the original March 2022 borrowing date, which may be extended at Lexicon’s option to 48 months if Lexicon maintains compliance with financial covenants relating to (i) net sales of INPEFA following regulatory approval and, (ii) minimum cash balance requirements if Lexicon draws the fourth tranche and following its funding. 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 June 30, 2023. Prior to the June 2023 amendment to the loan and security agreement, 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 such amendment, the floating interest rate is 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 June 30, 2023, the weighted average interest rate was 12.7%. During the six months ended June 30, 2023, the Company recognized interest expense of $3.8 million, including $0.5 million in amortization of discount and related debt costs. 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. Any prepayment of the Oxford Term Loans is subject to prepayment fees for up to three years after the funding of each tranche of the loans. 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. In addition to the financial covenants, additional covenants include those restricting dispositions, fundamental changes to its business, mergers or acquisitions, indebtedness, encumbrances, distributions, investments, transactions with affiliates and subordinated debt. The Company was in compliance with its debt covenants as of June 30, 2023.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Subparagraph (h)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(c))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 470
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org//470/tableOfContent

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Subparagraph (g)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Subparagraph (i)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1C
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1C

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1C
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1C

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1C
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1C

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1E
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1E

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1I
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1I
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1I
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I

+ Details

Fair Value Measurements

6 Months Ended

Jun. 30, 2023

Fair Value Measurements [Abstract]

Fair Value, Measurement Inputs, Disclosure

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 investments, 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 table provides 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 June 30, 2023 and December 31, 2022.


	Assets and Liabilities at Fair Value as of June 30, 2023
	Level 1		Level 2		Level 3		Total
	(in thousands)
Assets
Cash and cash equivalents	$	102,271	$	—	$	—	$	102,271
Short-term investments	153,457		1,011		—		154,468
Total cash and cash equivalents and investments	$	255,728	$	1,011	$	—	$	256,739


	Assets and Liabilities at Fair Value as of December 31, 2022
	Level 1		Level 2		Level 3		Total
	(in thousands)
Assets
Cash and cash equivalents	$	46,345	$	—	$	—	$	46,345
Short-term investments	73,680		18,332		—		92,012
Total cash and cash equivalents and investments	$	120,025	$	18,332	$	—	$	138,357

The fair value of the Oxford Term Loans (see Note 4) is determined under Level 2 in the fair value hierarchy and approximates carrying value as the loans bear interest at a rate that approximates prevailing market rates for instruments with similar characteristics. There were no transfers between Level 1 and Level 2 during the periods presented.

Compensation Related Costs, Share Based Payments (Details 2) - $ / shares shares in Thousands	6 Months Ended
	Jun. 30, 2023	Dec. 31, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number	18,500
Share-based Payment Arrangement, Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number		12,349
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price	$ 4.08	$ 5.10
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures	6,825
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price	$ 2.46
Share-based Compensation Arrangement by Share-based Payment Award, Options, Expirations in Period	152
Share-based Compensation Arrangements by Share-based Payment Award, Options, Expirations in Period, Weighted Average Exercise Price	$ 14.68
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period	522
Share-based Compensation Arrangements by Share-based Payment Award, Options, Forfeitures in Period, Weighted Average Exercise Price	$ 3.78
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number	7,357
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price	$ 5.94
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number	5,427
Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number		2,748
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value	$ 2.76	$ 3.78
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period	4,199
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value	$ 2.41
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period	1,290
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value	$ 3.80
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period	230
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value	$ 2.70

Summary of Significant Accounting Policies (Notes)

6 Months Ended

Jun. 30, 2023

Summary of Significant Accounting Policies [Abstract]

Basis of Presentation and Significant Accounting Policies [Text Block]

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 six month period ended June 30, 2023 are not necessarily indicative of the results that may be expected for the year ended December 31, 2023. 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, 2022, as filed with the SEC.

Use of Estimates: The preparation of financial statements in conformity with U.S. generally accepted accounting principles 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.

Cash, Cash Equivalents and Short-Term Investments: Lexicon considers all highly-liquid investments with original maturities of three months or less to be cash equivalents. As of June 30, 2023 and December 31, 2022, short-term investments consisted of U.S. treasury bills and corporate debt securities. The Company’s short-term investments are available for use in current operations regardless of the stated maturity date of the security and are classified as available-for-sale securities. The short-term investments are carried at fair value, based on quoted market prices of the securities. The Company does not intend to sell any of its available-for-sale securities prior to their maturity dates. Unrealized gains and losses on such securities are reported as a separate component of stockholders’ equity. Net realized gains and losses, interest and dividends are included in interest income. The cost of securities sold is based on the specific identification method.

Inventory: Inventory is comprised of the Company’s approved product that it is commercializing in the United States, INPEFATM (sotagliflozin). Inventories are determined at the lower of cost or market value with cost determined under the specific identification method and consisted of the following:


	As of June 30,		As of December 31,
	2023		2022
	(in thousands)
Raw materials	$	—	$	—
Work-in-progress	—		—
Finished goods	172		—
Inventory	$	172	$	—

Accrued liabilities: Accrued liabilities consisted of the following:


	As of June 30,		As of December 31,
	2023		2022
	(in thousands)
Accrued research and development services	$	6,071	$	3,252
Accrued compensation and benefits	7,566		7,830
Short-term lease liability	1,291		1,291
Other	680		404
Total accrued liabilities	$	15,608	$	12,777

Revenue Recognition:

Product Revenues. Product revenues consist of U.S. sales of INPEFA. In June 2023, Lexicon began shipping INPEFA to its customers in the U.S. These customers primarily include wholesalers and limited retail pharmacies. The Company has also begun to contract with certain managed care programs or pharmacy benefit managers (PBMs) and has legislatively mandated contracts with the federal and state governments under which rebates are provided based on product utilization. Product revenues are recognized when control is transferred to the customer upon delivery. Product shipping and handling costs are considered a fulfillment activity when control transfers to the Company’s customers and such costs are included in cost of sales.

The Company recognizes product revenue net of applicable estimates of reserves for variable consideration using the most likely amount method. These estimates consider relevant factors such as current contractual and statutory requirements, industry data and forecasted customer buying and payment patterns. Net product revenue includes variable consideration only to the extent that it is probable that a significant reversal in revenue recognized will not occur in a future period. As necessary, these estimates will be adjusted in the period that such variances to actuals become known. Listed below is a further discussion of these reserves and sales return allowances:

Customer Credits: The Company’s customers are offered various forms of consideration, including allowances, service fees and prompt payment discounts. The Company records allowances, deducts the full amount of prompt payment discounts, and deducts service fees from total product sales when revenues are earned and recognized.

Rebates: Allowances for rebates include mandated discounts under the Medicaid Drug Rebate Program reflecting amounts owed after final dispensing of the product to participants. The Company’s estimates for rebates is based on statutory discount rates, third party market research data and data from sales to its customers. As rebates are generally invoiced and paid in arrears, the Company accrues an estimate of rebates based on the current quarter’s activity, plus any known unpaid prior quarter rebates. If actual future rebates vary from estimates, the Company records adjustments to its net revenue estimates in the period when actual rebates are known.

Chargebacks: Chargebacks are discounts that occur when healthcare providers purchase directly from a wholesaler. Generally, the healthcare providers purchase INPEFA at a discounted price. The wholesaler, in turn, charges back to Lexicon the difference between the price paid by the wholesaler and the discounted price that the wholesaler’s customer pays for that product.

Medicare Part D Coverage Gap: The Medicare Part D prescription drug benefit mandates manufacturers to fund a portion of the Medicare Part D insurance coverage gap for prescription drugs sold to eligible patients. The Company’s estimates for the expected Medicare Part D coverage gap are based on sales data received from a third party and projections based on historical data. As funding of the coverage gap is generally invoiced and paid in arrears, the Company accrues an estimate based on the current quarter’s activity, plus any known unpaid prior quarter estimates. If actual future rebates vary from estimates, the Company records adjustments to its net revenue estimates in the period when actual rebates are known.

Co-payment assistance: Patients with commercial insurance who meet certain eligibility requirements are eligible to receive co-payment assistance. The Company accrues a liability for co-payment assistance based on actual program participation and estimates of program redemption using data provided by third-party administrators.

Sales returns: The Company records allowances for product returns, if appropriate, as a reduction of revenue at the time product sales are recorded based on an assessment of market exclusivity of the product, the patient population, the customers’ return rights and the Company’s historical experience with returns. Because approval is recent and there is a limited number of patients, most customers and retailers carry a limited inventory.

Collaborative Agreements. Revenues under collaborative agreements include both license revenue and contract research revenue. For a further description of the agreements, please refer to our Annual Report on Form 10-K for the year ended December 31, 2023.

Cost of sales: Cost of sales consists of third-party manufacturing costs, freight and indirect overhead costs associated with sales of INPEFA. The Company began capitalizing inventory in June 2023 following regulatory approval of INPEFA, as the related costs were expected to be recovered through the commercialization of the product. Costs incurred prior to the approval of INPEFA have been recorded as research and development expense in the condensed consolidated statements of comprehensive loss.

Research and Development Expenses: Research and development expenses consist of costs incurred for company-sponsored as well as collaborative research and development activities. These costs include direct and research-related overhead expenses and are expensed as incurred. Technology license fees for technologies that are utilized in research and development and have no alternative future use are expensed when incurred. Substantial portions of the Company’s preclinical and clinical trials are performed by third-party laboratories, medical centers, contract research organizations and other vendors. For preclinical studies, the Company accrues expenses based upon estimated percentage of work completed and the contract milestones remaining. For clinical studies, expenses are accrued based upon the number of patients enrolled and the duration of the study. The Company monitors patient enrollment, the progress of clinical studies and related activities to the extent possible through internal reviews of data reported to the Company by the vendors and clinical site visits. The Company’s estimates depend on the timeliness and accuracy of the data provided by the vendors regarding the status of each program and total program spending. The Company periodically evaluates the estimates to determine if adjustments are necessary or appropriate based on information it receives.

Net Loss per Common Share: Net loss per common share is computed using the weighted average number of shares of common stock outstanding. Shares associated with stock warrants, stock options and restricted stock units are not included because they are antidilutive due to the Company’s net loss.

Recent Accounting Pronouncements. We do not expect that any recently issued accounting pronouncements will have a material impact on our financial statements

Consolidated Statements of Stockholders' Equity/Deficit-Unaudited - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-In Capital	Accumulated Deficit	Accumulated Other Comprehensive Gain (Loss)	Treasury Stock, Common
Balance, shares at Dec. 31, 2021		150,082,000
Balance, value at Dec. 31, 2021	$ 113,595	$ 150	$ 1,608,749	$ (1,487,776)	$ (10)	$ (7,518)
Stock-based compensation	2,772	$ 0	2,772	0	0	0
Debt Conversion, Converted Instrument, Warrants or Options Issued		0
Adjustments to Additional Paid in Capital, Warrant Issued	698	$ 0	698	0	0	0
Repurchase of common stock	(864)	0	0	0	0	864
Net loss	(23,476)	0	0	(23,476)	0	0
Unrealized gain on investments	(27)	$ 0	0	0	(27)	0
Balance, shares at Mar. 31, 2022		150,082,000
Balance, value at Mar. 31, 2022	92,698	$ 150	1,605,898	(1,511,252)	(37)	(2,061)
Treasury Stock, Shares, Acquired		0
Stock Issued During Period, Value, Treasury Stock Reissued	0	$ 0	(6,321)	0	0
Stock Issued During Period, Shares, Treasury Stock Reissued		0
Balance, shares at Dec. 31, 2021		150,082,000
Balance, value at Dec. 31, 2021	113,595	$ 150	1,608,749	(1,487,776)	(10)	(7,518)
Adjustments to Additional Paid in Capital, Warrant Issued	698
Net loss	(48,063)
Unrealized gain on investments	(140)
Balance, shares at Jun. 30, 2022		150,114,000
Balance, value at Jun. 30, 2022	70,830	$ 150	1,608,730	(1,535,839)	(150)	(2,061)
Stock Issued During Period, Value, Treasury Stock Reissued	(6,321)
Balance, shares at Mar. 31, 2022		150,082,000
Balance, value at Mar. 31, 2022	92,698	$ 150	1,605,898	(1,511,252)	(37)	(2,061)
Stock-based compensation	2,832	0	2,832	0	0	0
APIC, Share-Based Payment Arrangement, Option, Increase for Cost Recognition		0
Net loss	(24,587)	0	0	(24,587)	0	0
Unrealized gain on investments	(113)	$ 0	0	0	(113)	0
Balance, shares at Jun. 30, 2022		150,114,000
Balance, value at Jun. 30, 2022	70,830	$ 150	1,608,730	(1,535,839)	(150)	(2,061)
Shares Issued, Value, Share-based Payment Arrangement, after Forfeiture	$ 0	$ 0	0	0	0	0
Share-Based Compensation Arrangement by Share-Based Payment Award, Shares Issued in Period		32,000
Balance, shares at Dec. 31, 2022	189,213,948	189,214,000
Balance, value at Dec. 31, 2022	$ 117,124	$ 189	1,709,144	(1,589,720)	(428)	(2,061)
Stock-based compensation	3,415	0	3,415	0	0	0
APIC, Share-Based Payment Arrangement, Option, Increase for Cost Recognition		0
Repurchase of common stock	(824)	0	0	0	0	(824)
Net loss		0	0	(31,934)	0	0
Unrealized gain on investments	265	$ 0	0	0	265	0
Balance, shares at Mar. 31, 2023		190,430,000
Balance, value at Mar. 31, 2023	88,046	$ 190	1,712,558	(1,621,654)	(163)	(2,885)
Shares Issued, Value, Share-based Payment Arrangement, after Forfeiture	$ 0	$ 1	(1)	0	0	0
Treasury Stock, Shares, Acquired		0
Share-Based Compensation Arrangement by Share-Based Payment Award, Shares Issued in Period		1,216,000
Balance, shares at Dec. 31, 2022	189,213,948	189,214,000
Balance, value at Dec. 31, 2022	$ 117,124	$ 189	1,709,144	(1,589,720)	(428)	(2,061)
Adjustments to Additional Paid in Capital, Warrant Issued	307
Net loss	(76,838)
Unrealized gain on investments	$ 328
Balance, shares at Jun. 30, 2023	245,792,668	245,793,000
Balance, value at Jun. 30, 2023	$ 186,361	$ 245	1,855,659	(1,666,558)	(100)	(2,885)
Stock Issued During Period, Value, Treasury Stock Reissued	0
Balance, shares at Mar. 31, 2023		190,430,000
Balance, value at Mar. 31, 2023	88,046	$ 190	1,712,558	(1,621,654)	(163)	(2,885)
Stock-based compensation	3,815	$ 0	3,815	0	0	$ 0
Issuance of common stock under Equity Incentive Plans, shares		55,288,000				0
Issuance of common stock under Equity Incentive Plans, value	(139,034)	$ (55)	(138,979)	0	0
APIC, Share-Based Payment Arrangement, Option, Increase for Cost Recognition		$ 0
Debt Conversion, Converted Instrument, Warrants or Options Issued		0
Adjustments to Additional Paid in Capital, Warrant Issued	307	$ 0	307	0	0	$ 0
Net loss	(44,904)	0	0	(44,904)	0	0
Unrealized gain on investments	$ 63	$ 0	0	0	63	0
Balance, shares at Jun. 30, 2023	245,792,668	245,793,000
Balance, value at Jun. 30, 2023	$ 186,361	$ 245	1,855,659	(1,666,558)	(100)	(2,885)
Shares Issued, Value, Share-based Payment Arrangement, after Forfeiture	$ 0	$ 0	$ 0	$ 0	$ 0	$ 0
Share-Based Compensation Arrangement by Share-Based Payment Award, Shares Issued in Period		75,000

Cash and Cash Equivalents and Investments (Tables)

6 Months Ended

Jun. 30, 2023

Cash and Cash Equivalents and Investments [Abstract]

Schedule of Cash, Cash Equivalents and Short-term Investments [Table Text Block]


	As of June 30, 2023
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
	(in thousands)
Cash and cash equivalents	$	102,270	$	1	$	—	$	102,271
Securities maturing within one year:
U.S. treasury securities	153,556		9		(108)		153,457
Corporate debt securities	1,013		—		(2)		1,011
Total short-term investments	$	154,569	$	9	$	(110)	$	154,468
Total cash and cash equivalents and investments	$	256,839	$	10	$	(110)	$	256,739

	As of December 31, 2022
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
			(in thousands)
Cash and cash equivalents	$	46,345	$	—	$	—	$	46,345
Securities maturing within one year:
U.S. treasury securities	74,022		—		(342)		73,680
Corporate debt securities	18,418		—		(86)		18,332
Total short-term investments	$	92,440	$	—	$	(428)	$	92,012
Total cash and cash equivalents and investments	$	138,785	$	—	$	(428)	$	138,357

Cash and Cash Equivalents and Investments (Details 1) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Fair Value
Debt Securities, Available-for-Sale, Current	$ 154,468	$ 92,012
Cash and Cash Equivalents
Fair Value
Debt Securities, Available-for-Sale, Accumulated Gross Unrealized Loss, before Tax	0	0
Debt Securities, Available-for-Sale, Accumulated Gross Unrealized Gain, before Tax	1	0
Debt Securities, Available-for-Sale, Amortized Cost, Current	102,270	46,345
Debt Securities, Available-for-Sale, Current	102,271	46,345
U.S. Treasury Securities
Fair Value
Debt Securities, Available-for-Sale, Accumulated Gross Unrealized Loss, before Tax	108	342
Debt Securities, Available-for-Sale, Accumulated Gross Unrealized Gain, before Tax	9	0
Debt Securities, Available-for-Sale, Amortized Cost, Current	153,556	74,022
Debt Securities, Available-for-Sale, Current	153,457	73,680
Corporate Debt Securities
Fair Value
Debt Securities, Available-for-Sale, Accumulated Gross Unrealized Loss, before Tax	2	86
Debt Securities, Available-for-Sale, Accumulated Gross Unrealized Gain, before Tax	0	0
Debt Securities, Available-for-Sale, Amortized Cost, Current	1,013	18,418
Debt Securities, Available-for-Sale, Current	1,011	18,332
Total Short-term Investments
Fair Value
Debt Securities, Available-for-Sale, Accumulated Gross Unrealized Loss, before Tax	110	428
Debt Securities, Available-for-Sale, Accumulated Gross Unrealized Gain, before Tax	9	0
Debt Securities, Available-for-Sale, Amortized Cost, Current	154,569	92,440
Debt Securities, Available-for-Sale, Current	154,468	92,012
Total Cash and Cash Equivalents and Investments
Fair Value
Debt Securities, Available-for-Sale, Accumulated Gross Unrealized Loss, before Tax	110	428
Debt Securities, Available-for-Sale, Accumulated Gross Unrealized Gain, before Tax	10	0
Debt Securities, Available-for-Sale, Amortized Cost, Current	256,839	138,785
Debt Securities, Available-for-Sale, Current	$ 256,739	$ 138,357

Commitments and Contingencies

6 Months Ended

Jun. 30, 2023

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies Disclosure

5. Commitments and Contingencies

Operating Lease Obligations: Lexicon’s operating leases include 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 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 record a right-of-use asset or associated liability for those leases with terms of twelve months or less.

As of June 30, 2023 and December 31, 2022, the right-of-use assets for the office space leases had a balance of $6.3 million and $6.8 million, respectively, which is included in operating lease right-of-use-assets in the condensed consolidated balance sheet. Current and long-term liabilities as of June 30, 2023, relating to the leases were $1.3 million and $5.5 million, respectively, which are included in accrued liabilities and long-term operating lease liabilities in the condensed consolidated balance sheet, respectively. Current and long-term liabilities as of December 31, 2022, relating to the leases were $1.3 million and $5.4 million, respectively, which are included in accrued liabilities and long-term operating lease liabilities in the condensed consolidated balance sheet, respectively. During the three and six months ended June 30, 2023 and 2022, the Company incurred lease expense of $0.4 million and $0.8 million and $0.3 million and $0.7 million, respectively.

During the six months ended June 30, 2023 and 2022, the Company made cash payments for lease liabilities of $0.3 million and $0.6 million, respectively. As of June 30, 2023 and December 31, 2022, the weighted-average remaining lease terms were 9.3 years and 9.5 years, respectively, with weighted-average discount rates of 9.6% and 9.6%, respectively.

The following table reconciles the undiscounted cash flows of the operating lease liability to the recorded lease liability at June 30, 2023:



	(in thousands)
2023	$	540
2024	1,378
2025	1,220
2026	865
2027	881
Thereafter	5,644
Total undiscounted operating lease liability	10,528
Less: amount of lease payments representing interest	(3,755)
Present value of future lease payments	6,773
Less: short-term operating lease liability	(1,291)
Long-term operating lease liability	$	5,482

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.

Consolidated Statements of Comprehensive Loss-Unaudited - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Revenues:
Collaborative agreements	$ 291	$ 0	$ 291	$ 0
Royalties and other revenue	26	35	49	72
Total revenues	317	35	340	72
Operating expenses:
Cost of sales (including finite-lived intangible asset amortization)	8	0	8	0
Research and development, including stock-based compensation of $1,302, $1,098, $2,505 and $2,130, respectively	14,541	13,356	26,567	28,282
Selling, general and administrative, including stock-based compensation of $2,513, $1,734, $4,725, and $3,474, respectively	30,008	10,686	49,147	19,177
Costs and Expenses	44,557	24,042	75,722	47,459
Loss from operations	(44,240)	(24,007)	(75,382)	(47,387)
Interest expense	(1,960)	(703)	(3,781)	(813)
Interest and other income, net	1,296	123	2,325	137
Net loss	$ (44,904)	$ (24,587)	$ (76,838)	$ (48,063)
Net income (loss) per common share, Basic	$ (0.22)	$ (0.16)	$ (0.39)	$ (0.32)
Shares used in computing net loss per common share, Basic	204,783	149,616	196,942	149,384
Unrealized gain on investments	$ 63	$ (113)	$ 328	$ (140)
Comprehensive loss	$ (44,841)	$ (24,700)	$ (76,510)	$ (48,203)

Cash and Cash Equivalents and Investments (Details 2) - USD ($)	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Cash and Cash Equivalents and Investments [Abstract]
Realized Investment Gains (Losses)	$ 0	$ 0

Other Capital Agreements (Details)	Jun. 30, 2023 $ / shares shares
Equity [Abstract]
May 2023 Equity Offering, shares sold \| shares	55,288,460
May 2023 Equity Offering, price per share \| $ / shares	$ 2.60

Commitments and Contingencies (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Other Commitments [Line Items]
Long-term Debt and Lease Obligation	$ 5,482		$ 5,482		$ 5,400
Lessee, Operating Lease, Liability, Payments, Due Next Twelve Months	540		540
Lessee, Operating Lease, Liability, Payments, Due Year Two	1,378		1,378
Lessee, Operating Lease, Liability, Payments, Due Year Three	1,220		1,220
Lessee, Operating Lease, Liability, Payments, Due Year Four	865		865
Lessee, Operating Lease, Liability, to be Paid, Year Five	881		881
Lessee, Operating Lease, Liability, Payments, Due after Year Five	5,644		5,644
Lessee, Operating Lease, Liability, Payments, Due	10,528		10,528
Lessee, Operating Lease, Liability, Undiscounted Excess Amount	3,755		3,755
Operating Lease, Liability	6,773		6,773
Short-term Lease Commitment, Amount	1,300		1,300		1,300
Operating Lease, Right-of-Use Asset	6,300		6,300		$ 6,800
Operating Lease, Expense	$ 400	$ 300	800	$ 700
Payments for Rent			$ 300	600
Finance Lease, Weighted Average Remaining Lease Term	9 years 3 months 18 days		9 years 3 months 18 days		9 years 6 months
Finance Lease, Weighted Average Discount Rate, Percent	9.60%		9.60%		9.60%
Proceeds from issuance of common stock			$ 139,034	$ 0

Consolidated Balance Sheets-Unaudited - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Current assets:
Cash and cash equivalents	$ 102,271	$ 46,345
Short-term investments	154,468	92,012
Accounts receivable, net	685	28
Inventory	172	0
Inventory, Raw Materials, Gross	0	0
Inventory, Work in Process, Gross	0	0
Inventory, Finished Goods, Gross	172	0
Inventory, Gross	172	0
Prepaid expenses and other current assets	6,124	2,481
Total current assets	263,720	140,866
Property and equipment, net of accumulated depreciation and amortization of $4,240 and $3,984, respectively	2,202	2,071
Goodwill	44,543	44,543
Other assets	6,259	6,819
Total assets	316,724	194,299
Current liabilities:
Accounts payable	10,501	10,395
Accrued liabilities	15,608	12,777
Total current liabilities	26,109	23,172
Other long-term liabilities	5,482	5,424
Total liabilities	130,363	77,175
Commitments and contingencies
Equity:
Preferred stock, $0.01 par value; 5,000,000 shares authorized; no shares issued and outstanding	0	0
Common stock, $0.001 par value; 300,000,000 shares authorized; 245,792.668 and 189,213.948 shares issued, respectively	245	189
Additional paid-in capital	1,855,659	1,709,144
Accumulated deficit	(1,666,558)	(1,589,720)
Accumulated other comprehensive loss	(100)	(428)
Treasury stock, at cost, 867.973 and 488.205 shares, respectively	(2,885)	(2,061)
Total stockholder's equity (deficit)	186,361	117,124
Total liabilities and equity	316,724	194,299
Long-term debt, net of deferred issuance costs	$ 98,772	$ 48,579

Compensation Related Costs, Share Based Payments

6 Months Ended

Jun. 30, 2023

Share-Based Payment Arrangement [Abstract]

Share-Based Payment Arrangement

Equity Incentive Awards

Stock-Based Compensation: The Company recognizes compensation expense in its condensed consolidated statements of comprehensive loss for share-based payments, including stock options and restricted stock units (RSUs) granted to employees, based on their fair values on the date of the grant, with the compensation expense recognized on a straight-line basis over the period in which an employee is required to provide service in exchange for the stock award.

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 a change in the 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 Company utilized the Black-Scholes valuation model for estimating the fair value of the stock option compensation granted, with the following weighted-average assumptions for stock options granted in the six months ended June 30, 2023 and 2022:


	Expected Volatility		Risk-free Interest Rate		Expected Term	Dividend Rate
June 30, 2023
Employees	113	%	3.8	%	4	—	%
Officers and non-employee directors	99	%	3.9	%	6	—	%
June 30, 2022
Employees	106	%	2.1	%	4	—	%
Officers and non-employee directors	91	%	1.9	%	7	—	%

The following is a summary of stock option activity under Lexicon’s stock-based compensation plans for the six months ended June 30, 2023:


	Stock Options	Weighted Average Exercise Price
	(in thousands)
Outstanding at December 31, 2022	12,349	$	5.10
Granted	6,825	2.46

Expired	(152)	14.68
Forfeited	(522)	3.78
Outstanding at June 30, 2023	18,500	4.08
Exercisable at June 30, 2023	7,357	$	5.94

The following is a summary of restricted stock unit activity under Lexicon’s stock-based compensation plans for the six months ended June 30, 2023:


	RSU’s	Weighted Average Grant Date Fair Value
	(in thousands)
Outstanding at December 31, 2022	2,748	$	3.78
Granted	4,199	2.41
Vested	(1,290)	3.80
Forfeited	(230)	2.70
Outstanding at June 30, 2023	5,427	$	2.76

Commitment and Contingencies (Tables)

6 Months Ended

Jun. 30, 2023

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 June 30, 2023:



	(in thousands)
2023	$	540
2024	1,378
2025	1,220
2026	865
2027	881
Thereafter	5,644
Total undiscounted operating lease liability	10,528
Less: amount of lease payments representing interest	(3,755)
Present value of future lease payments	6,773
Less: short-term operating lease liability	(1,291)
Long-term operating lease liability	$	5,482

Compensation Related Costs, Share Based Payments (Details 1) - Equity Option [Member]	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, ExpectedVolatilityRate, Employees	113.00%	106.00%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate, Employee	3.80%	2.10%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term, Employees	4 years	4 years
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate, Employees	0.00%	0.00%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate, Officers and Non-employee Directors	99.00%	91.00%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate, Officers and Non-employee Directors	3.90%	1.90%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term, Officers and Non-employee Directors	6 years	7 years
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate, Officers and Non-employee Directors	0.00%	0.00%

Summary of Significant Accounting Policies (Policies)	6 Months Ended
Summary of Significant Accounting Policies (Policies)	Jun. 30, 2023
Summary of Significant Accounting Policies [Abstract]
Basis of Accounting, Policy [Policy Text Block]	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 six month period ended June 30, 2023 are not necessarily indicative of the results that may be expected for the year ended December 31, 2023. 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, 2022, as filed with the SEC.
Use of Estimates, Policy [Policy Text Block]	Use of Estimates: The preparation of financial statements in conformity with U.S. generally accepted accounting principles 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.
Cash and Cash Equivalents, Policy [Policy Text Block]	Cash, Cash Equivalents and Short-Term Investments: Lexicon considers all highly-liquid investments with original maturities of three months or less to be cash equivalents. As of June 30, 2023 and December 31, 2022, short-term investments consisted of U.S. treasury bills and corporate debt securities. The Company’s short-term investments are available for use in current operations regardless of the stated maturity date of the security and are classified as available-for-sale securities. The short-term investments are carried at fair value, based on quoted market prices of the securities. The Company does not intend to sell any of its available-for-sale securities prior to their maturity dates. Unrealized gains and losses on such securities are reported as a separate component of stockholders’ equity. Net realized gains and losses, interest and dividends are included in interest income. The cost of securities sold is based on the specific identification method.
Inventory, Policy [Policy Text Block]	Inventory: Inventory is comprised of the Company’s approved product that it is commercializing in the United States, INPEFATM (sotagliflozin). Inventories are determined at the lower of cost or market value with cost determined under the specific identification method and consisted of the following:
Revenue [Policy Text Block]	Revenue Recognition: Product Revenues. Product revenues consist of U.S. sales of INPEFA. In June 2023, Lexicon began shipping INPEFA to its customers in the U.S. These customers primarily include wholesalers and limited retail pharmacies. The Company has also begun to contract with certain managed care programs or pharmacy benefit managers (PBMs) and has legislatively mandated contracts with the federal and state governments under which rebates are provided based on product utilization. Product revenues are recognized when control is transferred to the customer upon delivery. Product shipping and handling costs are considered a fulfillment activity when control transfers to the Company’s customers and such costs are included in cost of sales. The Company recognizes product revenue net of applicable estimates of reserves for variable consideration using the most likely amount method. These estimates consider relevant factors such as current contractual and statutory requirements, industry data and forecasted customer buying and payment patterns. Net product revenue includes variable consideration only to the extent that it is probable that a significant reversal in revenue recognized will not occur in a future period. As necessary, these estimates will be adjusted in the period that such variances to actuals become known. Listed below is a further discussion of these reserves and sales return allowances: Customer Credits: The Company’s customers are offered various forms of consideration, including allowances, service fees and prompt payment discounts. The Company records allowances, deducts the full amount of prompt payment discounts, and deducts service fees from total product sales when revenues are earned and recognized. Rebates: Allowances for rebates include mandated discounts under the Medicaid Drug Rebate Program reflecting amounts owed after final dispensing of the product to participants. The Company’s estimates for rebates is based on statutory discount rates, third party market research data and data from sales to its customers. As rebates are generally invoiced and paid in arrears, the Company accrues an estimate of rebates based on the current quarter’s activity, plus any known unpaid prior quarter rebates. If actual future rebates vary from estimates, the Company records adjustments to its net revenue estimates in the period when actual rebates are known. Chargebacks: Chargebacks are discounts that occur when healthcare providers purchase directly from a wholesaler. Generally, the healthcare providers purchase INPEFA at a discounted price. The wholesaler, in turn, charges back to Lexicon the difference between the price paid by the wholesaler and the discounted price that the wholesaler’s customer pays for that product. Medicare Part D Coverage Gap: The Medicare Part D prescription drug benefit mandates manufacturers to fund a portion of the Medicare Part D insurance coverage gap for prescription drugs sold to eligible patients. The Company’s estimates for the expected Medicare Part D coverage gap are based on sales data received from a third party and projections based on historical data. As funding of the coverage gap is generally invoiced and paid in arrears, the Company accrues an estimate based on the current quarter’s activity, plus any known unpaid prior quarter estimates. If actual future rebates vary from estimates, the Company records adjustments to its net revenue estimates in the period when actual rebates are known. Co-payment assistance: Patients with commercial insurance who meet certain eligibility requirements are eligible to receive co-payment assistance. The Company accrues a liability for co-payment assistance based on actual program participation and estimates of program redemption using data provided by third-party administrators. Sales returns: The Company records allowances for product returns, if appropriate, as a reduction of revenue at the time product sales are recorded based on an assessment of market exclusivity of the product, the patient population, the customers’ return rights and the Company’s historical experience with returns. Because approval is recent and there is a limited number of patients, most customers and retailers carry a limited inventory. Collaborative Agreements. Revenues under collaborative agreements include both license revenue and contract research revenue. For a further description of the agreements, please refer to our Annual Report on Form 10-K for the year ended December 31, 2023.
Cost of Goods and Service [Policy Text Block]	Cost of sales: Cost of sales consists of third-party manufacturing costs, freight and indirect overhead costs associated with sales of INPEFA. The Company began capitalizing inventory in June 2023 following regulatory approval of INPEFA, as the related costs were expected to be recovered through the commercialization of the product. Costs incurred prior to the approval of INPEFA have been recorded as research and development expense in the condensed consolidated statements of comprehensive loss.
Research and Development Expense, Policy [Policy Text Block]	Research and Development Expenses: Research and development expenses consist of costs incurred for company-sponsored as well as collaborative research and development activities. These costs include direct and research-related overhead expenses and are expensed as incurred. Technology license fees for technologies that are utilized in research and development and have no alternative future use are expensed when incurred. Substantial portions of the Company’s preclinical and clinical trials are performed by third-party laboratories, medical centers, contract research organizations and other vendors. For preclinical studies, the Company accrues expenses based upon estimated percentage of work completed and the contract milestones remaining. For clinical studies, expenses are accrued based upon the number of patients enrolled and the duration of the study. The Company monitors patient enrollment, the progress of clinical studies and related activities to the extent possible through internal reviews of data reported to the Company by the vendors and clinical site visits. The Company’s estimates depend on the timeliness and accuracy of the data provided by the vendors regarding the status of each program and total program spending. The Company periodically evaluates the estimates to determine if adjustments are necessary or appropriate based on information it receives.
Earnings Per Share, Policy [Policy Text Block]	Net Loss per Common Share: Net loss per common share is computed using the weighted average number of shares of common stock outstanding. Shares associated with stock warrants, stock options and restricted stock units are not included because they are antidilutive due to the Company’s net loss.
New Accounting Pronouncements, Policy [Policy Text Block]	Recent Accounting Pronouncements. We do not expect that any recently issued accounting pronouncements will have a material impact on our financial statements

Cash and Cash Equivalents and Investments

6 Months Ended

Jun. 30, 2023

Cash and Cash Equivalents and Investments [Abstract]

Cash and Cash Equivalents Disclosure

Cash and Cash Equivalents and Investments

The fair value of cash and cash equivalents and investments held at June 30, 2023 and December 31, 2022 are as follows:


	As of June 30, 2023
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
	(in thousands)
Cash and cash equivalents	$	102,270	$	1	$	—	$	102,271
Securities maturing within one year:
U.S. treasury securities	153,556		9		(108)		153,457
Corporate debt securities	1,013		—		(2)		1,011
Total short-term investments	$	154,569	$	9	$	(110)	$	154,468
Total cash and cash equivalents and investments	$	256,839	$	10	$	(110)	$	256,739

	As of December 31, 2022
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
			(in thousands)
Cash and cash equivalents	$	46,345	$	—	$	—	$	46,345
Securities maturing within one year:
U.S. treasury securities	74,022		—		(342)		73,680
Corporate debt securities	18,418		—		(86)		18,332
Total short-term investments	$	92,440	$	—	$	(428)	$	92,012
Total cash and cash equivalents and investments	$	138,785	$	—	$	(428)	$	138,357

There were no realized losses during either of the six month periods ended June 30, 2023 and 2022, respectively.

Compensation Related Costs, Share Based Payments (Tables)

6 Months Ended

Jun. 30, 2023

Share-Based Payment Arrangement [Abstract]

Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block]


	Expected Volatility		Risk-free Interest Rate		Expected Term	Dividend Rate
June 30, 2023
Employees	113	%	3.8	%	4	—	%
Officers and non-employee directors	99	%	3.9	%	6	—	%
June 30, 2022
Employees	106	%	2.1	%	4	—	%
Officers and non-employee directors	91	%	1.9	%	7	—	%

Share-based Payment Arrangement, Option, Activity [Table Text Block]

The following is a summary of stock option activity under Lexicon’s stock-based compensation plans for the six months ended June 30, 2023:


	Stock Options	Weighted Average Exercise Price
	(in thousands)
Outstanding at December 31, 2022	12,349	$	5.10
Granted	6,825	2.46

Expired	(152)	14.68
Forfeited	(522)	3.78
Outstanding at June 30, 2023	18,500	4.08
Exercisable at June 30, 2023	7,357	$	5.94

Schedule of Nonvested Restricted Stock Units Activity [Table Text Block]

The following is a summary of restricted stock unit activity under Lexicon’s stock-based compensation plans for the six months ended June 30, 2023:


	RSU’s	Weighted Average Grant Date Fair Value
	(in thousands)
Outstanding at December 31, 2022	2,748	$	3.78
Granted	4,199	2.41
Vested	(1,290)	3.80
Forfeited	(230)	2.70
Outstanding at June 30, 2023	5,427	$	2.76

Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2023

Fair Value Measurements [Abstract]

Fair Value, by Balance Sheet Grouping [Table Text Block]


	Assets and Liabilities at Fair Value as of June 30, 2023
	Level 1		Level 2		Level 3		Total
	(in thousands)
Assets
Cash and cash equivalents	$	102,271	$	—	$	—	$	102,271
Short-term investments	153,457		1,011		—		154,468
Total cash and cash equivalents and investments	$	255,728	$	1,011	$	—	$	256,739


	Assets and Liabilities at Fair Value as of December 31, 2022
	Level 1		Level 2		Level 3		Total
	(in thousands)
Assets
Cash and cash equivalents	$	46,345	$	—	$	—	$	46,345
Short-term investments	73,680		18,332		—		92,012
Total cash and cash equivalents and investments	$	120,025	$	18,332	$	—	$	138,357

Debt Obligations (Details) - USD ($)	3 Months Ended		6 Months Ended
Debt Obligations (Details) - USD ($)	Jun. 30, 2023	Mar. 31, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Debt Obligations [Abstract]
Common stock, shares issued	245,792,668		245,792,668		189,213,948
Long-term debt, net of deferred issuance costs	$ (98,772,000)		$ (98,772,000)		$ (48,579,000)
Long-Term Debt	98,800,000		98,800,000
Term Loan A		$ 25,000,000
Term Loan B					$ 25,000,000
Term Loan C	50,000,000		50,000,000
Term Loan D	25,000,000		25,000,000
Term Loan E	$ 25,000,000		$ 25,000,000
Oxford Loan Facility		$ 150,000,000
Term Loan D Warrant %	1.75%		1.75%
Term Loan A Warrants Number		420,673
Term Loan A Warrant Exercise Price		$ 2.08
Term Loan B Warrants Number					224,128
Term Loan B Warrant Exercise Price					$ 1.95
Term Loan C Warrants Number	$ 183,824		$ 183,824
Term Loan C Warrant Exercise Price	$ 2.38		$ 2.38
Adjustments to Additional Paid in Capital, Warrant Issued	$ 307,000	$ 698,000	$ 307,000	$ 698,000
Debt Instrument, Interest Rate, Stated Percentage				7.90%
Long-Term Debt, Percentage Bearing Fixed Interest, Percentage Rate				8.01%
Final Payment % with no extention	6.00%		6.00%
Final Payment % with extention	7.00%		7.00%
Term Loan A Final Payment	$ 6,000,000		$ 6,000,000
2026 Oxford Principal Payments	34,800,000		34,800,000
2027 Oxford Principal Payments	52,200,000		52,200,000
2027 Oxford Principal Payments2	$ 19,000,000.0		19,000,000.0
Amortization of Debt Discount (Premium)			$ 500,000
Term Loan C & D, Interest Rate, Stated Percentage	7.00%		7.00%
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net	$ 7,200,000		$ 7,200,000
Debt, Weighted Average Interest Rate	12.70%		12.70%
Term Loan Incremental Interest Component	0.10%		0.10%

Consolidated Statements of Comprehensive Loss Parentheticals - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Consolidated Statements of Operations [Abstract]
Stock-based compensation expense associated with research and development expense	$ 1,302	$ 1,098	$ 2,505	$ 2,130
Stock-based compensation expense associated with selling, general and administrative expense	$ 2,513	$ 1,734	$ 4,725	$ 3,474

Fair Value Measurements (Details 1) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Fair Value
Cash and Cash Equivalents	$ 102,271	$ 46,345
Debt Securities, Available-for-Sale, Current	154,468	92,012
Total Cash and Cash Equivalents and Investments	256,739	138,357
Fair Value, Level 1
Fair Value
Cash and Cash Equivalents	102,271	46,345
Debt Securities, Available-for-Sale, Current	153,457	73,680
Total Cash and Cash Equivalents and Investments	255,728	120,025
Fair Value, Level 2
Fair Value
Cash and Cash Equivalents	0	0
Debt Securities, Available-for-Sale, Current	1,011	18,332
Total Cash and Cash Equivalents and Investments	1,011	18,332
Fair Value, Level 3
Fair Value
Cash and Cash Equivalents	0	0
Debt Securities, Available-for-Sale, Current	0	0
Total Cash and Cash Equivalents and Investments	$ 0	$ 0

Document and Entity Information - shares	6 Months Ended
Document and Entity Information - shares	Jun. 30, 2023	Aug. 01, 2023
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2023
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		244,924,695
Document Fiscal Period Focus	Q2
Amendment Flag	false
Document Fiscal Year Focus	2023
Current Fiscal Year End Date	--12-31
Entity Central Index Key	0001062822

Consolidated Balance Sheets Parentheticals - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Consolidated Balance Sheets [Abstract]
Accumulated depreciation and amortization, property and equipment	$ 4,240	$ 3,984
Preferred stock, par value per share	$ 0.01	$ 0.01
Preferred stock, shares authorized	5,000,000,000	5,000,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value per share	$ 0.001	$ 0.001
Common stock, shares authorized	300,000,000,000	300,000,000,000
Common stock, shares issued	245,792,668	189,213,948
Treasury Stock, Common, Shares	867,973	488,205

Summary of Significant Accounting Policies (Tables)

6 Months Ended

Jun. 30, 2023

Summary of Significant Accounting Policies [Abstract]

Schedule of Inventory, Current


	As of June 30,		As of December 31,
	2023		2022
	(in thousands)
Raw materials	$	—	$	—
Work-in-progress	—		—
Finished goods	172		—
Inventory	$	172	$	—

Schedule of Accrued Liabilities

Accrued liabilities: Accrued liabilities consisted of the following:


	As of June 30,		As of December 31,
	2023		2022
	(in thousands)
Accrued research and development services	$	6,071	$	3,252
Accrued compensation and benefits	7,566		7,830
Short-term lease liability	1,291		1,291
Other	680		404
Total accrued liabilities	$	15,608	$	12,777