0001062822-24-000008 | 10-K | XBRL Viewer | Lexicon Pharmaceuticals INC

Commitments and Contingencies

12 Months Ended

Dec. 31, 2023

Commitments and Contingencies Disclosure [Abstract]

Operating Lease Obligations. Lexicon’s operating leases include leases of office space in The Woodlands, Texas and Bridgewater, New Jersey that will expire in August 2025 and January 2034, respectively. The Texas lease provides for escalating yearly base rent payments which started at $506,000 and increase to $557,000 in the final year of the lease. The New Jersey lease provides for escalating yearly base rent payments which started at $820,000 and increase to $986,000 in the final year of the lease. Under its lease agreements, Lexicon is obligated to pay property taxes, insurance, and maintenance costs.

As of December 31, 2023 and 2022, the right-of-use assets for the office space leases had a balance of $5.5 million and $6.4 million, respectively, which are included in operating lease right-of-use-assets in the consolidated balance sheet. Current and long-term liabilities as of December 31, 2023, relating to the leases were $1.3 million and $5.3 million, respectively, which are included in accrued liabilities and long-term operating lease liabilities in the 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 consolidated balance sheet, respectively. During the years ended December 31, 2023 and 2022, the Company incurred lease expense of $1.6 million and $1.8 million, respectively.

During the years ended December 31, 2023 and 2022, the Company made cash payments for lease liabilities of $0.8 million and $1.1 million, respectively. As of December 31, 2023 and 2022, the weighted-average remaining lease terms were 9 years and 9.5 years, respectively, with weighted-average discount rates of 9.6% for each year.

The following table reconciles the undiscounted cash flows of the operating lease liability to the recorded lease liability at December 31, 2023:



	(in thousands)
2024	$	1,378
2025	1,220
2026	865
2027	881
2028	898
Thereafter	4,746
Total undiscounted operating lease liability	$	9,988
Less: amount of lease payments representing interest	(3,432)
Present value of future lease payments	6,556
Less: short-term operating lease liability	(1,291)
Long-term operating lease liability	$	5,265

Employment Arrangements. Lexicon has entered into employment arrangements with certain of its corporate officers. Under the arrangements, each officer receives a base salary, subject to adjustment, with an annual discretionary bonus based upon specific objectives to be determined by the compensation committee. The employment arrangements are at-will and some contain non-competition agreements. Some of the arrangements also provide for certain severance payments for either six or 12 months and, in some cases, payment of a specified portion of the officer’s bonus target for such year, in the event of a specified termination of the officer’s employment.

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.

Summary of Significant Accounting Policies (Details) - segment	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Property, Plant and Equipment [Line Items]
Number of business segments	1
Minimum
Property, Plant and Equipment [Line Items]
Estimated useful life of assets	3 years
Maximum
Property, Plant and Equipment [Line Items]
Estimated useful life of assets	40 years
Three Customers \| Revenue Benchmark \| Customer Concentration Risk
Property, Plant and Equipment [Line Items]
Concentration risk percentage	85.00%
One Customer \| Revenue Benchmark \| Customer Concentration Risk
Property, Plant and Equipment [Line Items]
Concentration risk percentage		100.00%
Two Customers \| Revenue Benchmark \| Customer Concentration Risk
Property, Plant and Equipment [Line Items]
Concentration risk percentage			100.00%

Audit Information	12 Months Ended
Audit Information	Dec. 31, 2023
Audit Information [Abstract]
Auditor Firm ID	42
Auditor Name	Ernst & Young LLP
Auditor Location	Houston, Texas

Consolidated Statements of Comprehensive Loss (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Stock-based compensation	$ 14,300	$ 11,500	$ 10,600
Other Expenses	(13,101)	(2,780)	(802)
Research and Development Expense
Stock-based compensation	5,139	4,253	4,284
Selling, General and Administrative Expenses
Stock-based compensation	$ 9,201	$ 7,267	$ 6,293

Equity Incentive Awards - Summary of Restricted Stock Units Activity (Details) - Restricted Stock Units (RSUs) shares in Thousands	12 Months Ended
	Dec. 31, 2023 $ / shares shares
Shares
Outstanding at beginning of period (in shares) \| shares	2,748
Granted (in shares) \| shares	4,199
Vested (in shares) \| shares	(1,291)
Forfeited (in shares) \| shares	(641)
Outstanding at end of period (in shares) \| shares	5,015
Weighted Average Grant Date Fair Value
Outstanding at beginning of period (in dollars per share) \| $ / shares	$ 3.78
Granted (in dollars per share) \| $ / shares	2.43
Vested (in dollars per share) \| $ / shares	3.80
Forfeited (in dollars per share) \| $ / shares	2.72
Outstanding at end of period (in dollars per share) \| $ / shares	$ 2.78

Equity Incentive Awards

12 Months Ended

Dec. 31, 2023

Share-Based Payment Arrangement [Abstract]

Equity Incentive Awards

The Company has stockholder-approved equity incentive plans further described below that permit the grant of stock options, restricted stock unit awards, and other stock-based awards to employees, directors, and consultants of the Company.

2017 Equity Incentive Plan. The Company’s 2017 Equity Incentive Plan permits the grant of incentive stock options to employees and nonstatutory stock options to employees, directors and consultants of the Company. The plan also permits the grant of stock bonus awards, restricted stock awards, restricted stock unit awards, stock appreciation rights and performance stock awards. Incentive and nonstatutory stock options have an exercise price of 100% or more of the fair market value of the Company’s common stock on the date of grant. Most stock options granted under the 2017 Equity Incentive Plan become vested and exercisable over a period of four years. Stock options granted under the Equity Incentive Plan have a term of 10 years from the date of grant. Vesting of restricted stock units issued under this plan generally vest in three annual installments.

2017 Non-Employee Directors’ Equity Incentive Plan (the “Directors’ Plan”). Under the Company’s Directors’ Plan, non-employee directors may be granted awards under the plan with an aggregate grant date fair value of no more than $500,000 during any calendar year, taken together with any cash fees paid to such non-employee director in compensation for service on Lexicon’s board of directors during such calendar year. Stock options granted under the Directors’ Plan have an exercise price equal to the fair market value of the Company’s common stock on the date of grant and a term of 10 years from the date of grant. Vesting of restricted stock units granted under this plan occurs on the first anniversary of the grant date.

The total number of shares of common stock that may be issued pursuant to stock awards under the Equity Incentive Plan and the Directors’ Plan shall not exceed in the aggregate 55,000,000 and 2,000,000 shares at December 31, 2023, respectively. Under the combined plans, as of December 31, 2023, an aggregate of 23,719,712 shares of common stock were reserved for issuance upon exercise of outstanding stock options and vesting of outstanding restricted stock units and 24,047,212 additional shares were available for future grants. The Company has a policy of using either authorized and unissued shares or treasury shares, including shares acquired by purchase in the open market or in private transactions, to satisfy equity award exercises. As of December 31, 2023, options to purchase 18,705,022 shares and 5,014,690 restricted stock

units were outstanding, 2,285,702 shares had been issued upon the exercise of stock options, 6,730,226 shares had been issued pursuant to restricted stock units and 217,148 shares had been issued pursuant to stock bonus awards or restricted stock awards granted under the aggregate of both plans.

For the years ended December 2023, 2022, and 2021 stock-based compensation costs was $14.3 million, $11.5 million, and $10.6 million, respectively. As of December 31, 2023, future stock-based compensation cost for all outstanding unvested stock options and restricted stock units was $26.8 million, which is expected to be recognized over a weighted-average period of 1.2 years.

Stock Options. The following is a summary of stock option activity under Lexicon’s equity incentive plans for the year ended December 31, 2023:


	As of December 31, 2023
(in thousands, except exercise price data)	Options	Weighted Average Exercise Price
Outstanding at beginning of year	12,349	$	5.10
Granted	8,091	2.29
Exercised	—	—
Expired	(152)	14.68
Forfeited	(1,583)	3.66
Outstanding at end of year	18,705	3.93
Exercisable at end of year	8,280	$	5.58

The weighted average estimated grant date fair value of stock options granted during the years ended December 31, 2023, 2022 and 2021 were $1.78, $2.30 and $4.85, respectively. The weighted average remaining contractual term of stock options outstanding and exercisable was 7.5 and 5.6 years, respectively, as of December 31, 2023. At December 31, 2023, the aggregate intrinsic value of the outstanding stock options was $0.4 million. At December 31, 2023, the intrinsic value of exercisable stock options was $0.

The fair value of stock options is estimated at the date of grant using the Black-Scholes method requiring the input of subjective assumptions. 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 years ended December 31, 2023, 2022 and 2021, respectively:


	Expected Volatility	Risk-free Interest Rate	Expected Term	Dividend Rate
December 31, 2023:
Employees	110%	3.9%	4	0	%
Officers and non-employee directors	98%	4.0%	6	0	%
December 31, 2022:
Employees	109%	2.8%	4	0	%
Officers and non-employee directors	91%	1.9%	7	0	%
December 31, 2021:
Employees	104%	0.7%	4	0	%
Officers and non-employee directors	90%	1%	6	0	%

Restricted Stock Units. During the years ended December 31, 2023, 2022 and 2021, Lexicon granted its employees restricted stock units in lieu of or in addition to annual stock option awards. The total fair value of shares vested in 2023, 2022 and 2021 was $2.9 million, $2.9 million and $8.7 million, respectively.

During the years ended December 31, 2023, 2022 and 2021, Lexicon granted its non-employee directors 64,256, 74,416 and 32,192 restricted stock units, respectively. The restricted stock granted in 2023, 2022 and 2021 had weighted average grant date fair values of $2.36, $1.77 and $5.04 per share, respectively.

The following is a summary of restricted stock units activity under Lexicon’s stock-based compensation plans for the year ended December 31, 2023:


	Shares	Weighted Average Grant Date Fair Value
	(in thousands)
Outstanding at December 31, 2022	2,748	$	3.78
Granted	4,199	2.43
Vested	(1,291)	3.80
Forfeited	(641)	2.72
Outstanding at December 31, 2023	5,015	$	2.78

During the year ended December 31, 2022, the Company issued $6.3 million of Treasury shares in lieu of issuing additional authorized common shares in order to satisfy the annual vesting of restricted stock units for its employees and officers.

Organization and Operations	12 Months Ended
Organization and Operations	Dec. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization and Operations	Organization and Operations Lexicon Pharmaceuticals, Inc. (“Lexicon” or the “Company”) is a Delaware corporation incorporated on July 7, 1995. Lexicon was organized to discover the functions and pharmaceutical utility of genes and use those gene function discoveries in the discovery and development of pharmaceutical products for the treatment of human disease. Lexicon has financed its operations from inception primarily through sales of common and preferred stock, contract and milestone payments to it under strategic collaborations and other research and development collaborations, target validation, database subscription and technology license agreements, product sales, government grants and contracts and financing under debt and lease arrangements. The Company’s future success is dependent upon many factors, including, but not limited to, the success of its commercialization efforts for INPEFA for heart failure; the success of its commercial launch of sotagliflozin for patients with type 1 diabetes and CKD, if approved; its ongoing research and development efforts and its ability to obtain necessary regulatory approvals of the drug candidates which are the subject of such efforts; its success in establishing new collaborations and licenses and its receipt of milestones, royalties and other payments under such arrangements; the amount and timing of research, development and commercialization expenditures; the resources devoted to developing and supporting its products; general and industry-specific economic conditions which may affect research, development and commercialization expenditures; and its ability to obtain and enforce patents and other proprietary rights in its discoveries, comply with federal and state regulations, and maintain sufficient capital to fund its activities. As a result of the aforementioned factors and the related uncertainties, there can be no assurance of the Company’s future success.

Supplemental Financial Information (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Inventories:
Raw materials	$ 0	$ 0
Work-in-progress	100	0
Finished goods	281	0
Inventory	381	0
Accrued Liabilities:
Accrued research and development services	3,705	3,252
Accrued compensation and benefits	$ 9,591	$ 7,830
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration]	Accrued liabilities	Accrued liabilities
Short term lease liability	$ 1,291	$ 1,291
Other	2,570	404
Accrued liabilities	$ 17,157	$ 12,777

Supplemental Financial Information (Tables)

12 Months Ended

Dec. 31, 2023

Balance Sheet Related Disclosures [Abstract]

Schedule of Inventories

The following tables show the Company’s additional balance sheet information as of December 31, 2023 and 2022:


	As of December 31,
	2023		2022
	(in thousands)
Inventories:
Raw materials	$	—	$	—
Work-in-progress	100		—
Finished goods	281		—
Inventory	$	381	$	—

Schedule of Accrued Liabilities


	As of December 31,
	2023		2022
	(in thousands)
Accrued Liabilities:
Accrued research and development services	$	3,705	$	3,252
Accrued compensation and benefits	9,591		7,830
Short term lease liability	1,291		1,291
Other	2,570		404
Accrued liabilities	$	17,157	$	12,777

Commitments and Contingencies - Narrative (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Other Commitments [Line Items]
Rent payments	$ 800	$ 1,100
Operating lease right-of-use-assets	5,524	6,407
Short term lease liability	1,291	1,291
Long-term operating lease liabilities	5,265	5,424
Lease expense	$ 1,600	$ 1,800
Weighted-average remaining lease term	9 years	9 years 6 months
Weighted-average discount rate	9.60%	9.60%
Minimum \| TEXAS
Other Commitments [Line Items]
Rent payments	$ 506
Minimum \| NEW JERSEY
Other Commitments [Line Items]
Rent payments	820
Maximum \| TEXAS
Other Commitments [Line Items]
Rent payments	557
Maximum \| NEW JERSEY
Other Commitments [Line Items]
Rent payments	$ 986

Summary of Significant Accounting Policies (Policies)	12 Months Ended
Summary of Significant Accounting Policies (Policies)	Dec. 31, 2023
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation. The accompanying consolidated financial statements include the accounts of Lexicon and its wholly-owned subsidiaries. Intercompany transactions and balances are eliminated in consolidation. Lexicon has made certain reclassification adjustments to conform prior-period amounts to the current presentation. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included.
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.
Cash, Cash Equivalents and Short-Term Investments	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 December 31, 2023 and 2022, short-term investments consist primarily of U.S. treasury bills as well as certain corporate and other debt securities. The Company’s short-term investments are available for use in current operations regardless of the stated maturity date of the security. These short-term investments are classified as available-for-sale securities as the Company has not historically or does not intend to sell any of its available-for-sale securities prior to their maturity dates. Short-term investments are carried at fair value, based on quoted market prices of the securities. The costs of securities sold is based on the specific identification method. Any net realized gains and losses, interest and dividends, and amortization of premium or accretion of discount are included in interest and other income. Unrealized gains and losses on such securities are reported as a separate component of stockholders’ equity. The Company reviews its portfolio of available-for-sale debt securities in an unrealized loss position. For those investments whose fair value is less than amortized cost, to the extent the Company decided to sell these investments prior to their maturity dates or was required to sell such investments, the Company would evaluate the expected cash flows to be received as compared to amortized cost and to determine if an expected credit loss has occurred.
Accounts Receivable	Accounts Receivable. Lexicon records trade accounts receivable in the normal course of business related to the sale of products or services, net of an allowance for expected credit losses.
Concentration of Credit Risk	Concentration of Credit Risk. Lexicon’s cash equivalents, investments and accounts receivable represent potential concentrations of credit risk. The Company attempts to minimize potential concentrations of risk in cash equivalents and investments by placing investments in high-quality financial instruments. The Company has not experienced any realized losses on its cash equivalents or short-term investments. The Company’s accounts receivable are unsecured and are primarily concentrated in large pharmaceutical and biotechnology companies located in the United States. The Company has not experienced any significant credit losses to date.
Segment Information and Significant Customers	Segment Information and Significant Customers. Lexicon operates in one business segment, which primarily focuses on the discovery, development and commercialization of pharmaceutical products for the treatment of human disease. Substantially all of the Company’s revenues have been derived from drug discovery alliances, target validation collaborations for the development and, in some cases, analysis of the physiological effects of genes altered in knockout mice, technology licenses, subscriptions to its databases, product sales, government grants and contracts and compound library sales, as well as from commercial sales of its approved drug products. In support of the commercial launch of INPEFA in 2023, the Company entered into distribution agreements with wholesalers and limited retail pharmacies. The Company’s net product sales are generated from sales to these customers. In 2023, 11 United States-based customers accounted for all of the Company’s net product revenue. Three large wholesalers, each of which account for greater than 10% of total revenues and in the aggregate account for greater than 85% of total revenues. In 2022 and 2021, the Company’s revenues were solely derived from royalties and other revenues from one and two customers, respectively.
Property and Equipment	Property and Equipment. Property and equipment that is held and used is carried at cost and depreciated using the straight-line method over the estimated useful life of the assets, which ranges from three to 40 years. Maintenance, repairs and minor replacements are charged to expense as incurred. Leasehold improvements are amortized over the shorter of the estimated useful life or the remaining lease term. Significant renewals and betterments are capitalized.
Impairment of Long-Lived Assets	Impairment of Long-Lived Assets. Long-lived assets and right-of-use assets for leases are reviewed for impairment when events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Recoverability of assets to be held and used is measured by comparison of the carrying amount of an asset to future net cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount that the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell. There were no impairments of long-lived assets, in 2023, 2022, or 2021.
Goodwill	Goodwill. Goodwill is not amortized, but is tested at least annually for impairment at the reporting unit level which the Company has determined is the single operating segment disclosed in its current financial statements. An impairment exists when the carrying amount of goodwill exceeds its implied fair value. Additional impairment assessments may be performed on an interim basis if the Company encounters events or changes in circumstances that would indicate that, more likely than not, the carrying value of goodwill has been impaired.
Leases	Leases. Lexicon determines if a contract is or contains a lease at inception or upon modification of the contract. A contract is or contains a lease if it conveys the right to control the use of an identified asset for a period in exchange for consideration. Control over the use of the identified asset means the lessee has both (a) the right to obtain substantially all of the economic benefits from the use of the asset and (b) the right to direct the use of the asset. Lexicon does not apply this accounting to those leases with terms of twelve (12) months or less. 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.
Inventory	Inventory: Inventory is comprised of INPEFA, the Company’s approved product that it is commercializing in the United States. Inventories are determined at the lower of cost or market value, with cost determined under the specific identification method.
Revenue Recognition	Revenue Recognition. The Company performs the following five steps in determining the amount of revenue to recognize as it fulfills its performance obligations under each of its collaborative agreements: (a) identify the contract(s) with a customer; (b) identify the performance obligation in the contract; (c) determine the transaction price; (d) allocate the transaction price to the performance obligation in the contract, and (e) recognize revenue when (or as) the Company satisfies the performance obligation. The Company applies this five-step model to contracts when it is probable that the Company will collect the consideration it is entitled to in exchange for the goods or services it transfers to the customer. At contract inception, the Company assesses the goods or services promised within each contract and determines those that are performance obligations, and assesses whether each promised good or service is distinct. The Company then recognizes as revenue the amount of the transaction price that is allocated to the respective performance obligation when (or as) the performance obligation is satisfied. The Company develops assumptions that require judgment to determine the stand-alone selling price for each performance obligation identified in the contract. Product Revenues Product revenues consist of U.S. sales of INPEFA, which Lexicon began shipping to its customers in the U.S. in June 2023. These customers primarily include wholesalers and limited retail pharmacies. The Company is continuing 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. The Company recognizes product revenue net of applicable estimates of reserves for variable consideration using the expected value 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 were 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. Chargebacks. Chargebacks are discounts that occur when contracted healthcare providers purchase directly from a wholesaler. Generally, the contracted 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. 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	Collaborative Agreements Revenues under collaborative agreements include both license revenue and contract research revenue. At contract inception, the Company evaluates whether development milestones are considered probable of being reached and estimates the amount to be included in the transaction price using the most likely amount method. If it is probable that a significant revenue reversal will not occur, the associated development milestone value is included in the transaction price. Development milestones that are not within the control of the Company or the licensee, including those requiring regulatory approval, are not considered probable of being achieved until those approvals are received. The transaction price is allocated to each performance obligation on a relative stand-alone selling price basis, for which the Company recognizes revenue when (or as) the performance obligation is satisfied. At the end of each reporting period, the Company re-evaluates the probability of achievement of the development milestones and any related constraint, and if necessary, adjusts its estimates of the overall transaction price. Any such adjustments are recorded on a cumulative catch-up basis, which would affect collaboration revenues in the period of adjustment. For agreements in which a license to the Company’s intellectual property is determined distinct from other performance obligations identified in the agreement, the Company recognizes revenue when the license is transferred to the licensee and the licensee is able to use and benefit from the license. For agreements that include sales-based royalties, including milestones based on a level of sales, the license is deemed to be the predominant item to which the royalties relate and the Company recognizes revenue at the later of (a) when the related sales occur, or (b) when the performance obligation to which some or all of the royalty has been allocated has been satisfied (or partially satisfied). The Company may receive payments from its licensees based on billing schedules established in each contract. Upfront payments and fees are recorded as deferred revenue upon receipt or when due, and may require deferral of revenue recognition to a future period until the Company performs its obligations under these agreements. Amounts are recorded as accounts receivable when the Company’s right to consideration is unconditional.
Cost of Sales	Cost of Sales. Cost of sales consists of third-party manufacturing costs, product shipping and handling costs and freight associated with sales of INPEFA. The Company began capitalizing inventory manufactured subsequent to regulatory approval of INPEFA in June 2023, as the related costs were expected to be recovered through the commercialization of the product. Costs related to manufacturing inventory prior to the approval of INPEFA have been recorded as research and development expense in the consolidated statements of comprehensive loss.
Research and Development Expenses	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 completion of milestones. 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.
Stock-Based Compensation	Stock-Based Compensation. 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. Forfeitures of share-based payment awards are recognized in the period in which they occur. Compensation expense is recorded in research and development expense and selling, general, and administrative expense as noted on the Company’s consolidated statements of comprehensive loss.
Income Taxes	Income Taxes. The Company recognizes deferred tax liabilities and assets for the expected future tax consequences of events that have been recognized differently in the financial statements and tax returns. The Company uses the liability method in accounting for income taxes. Under this method, deferred tax liabilities and assets are determined based on the difference between the financial statement carrying amounts and tax bases of liabilities and assets using enacted tax rates and laws in effect in the years in which the differences are expected to reverse. Deferred tax assets are evaluated for realization based on a more-likely-than-not criteria in determining if a valuation allowance should be provided. In evaluating our valuation allowances, we consider cumulative book losses, the reversal of existing temporary differences, tax planning strategies and estimates of future taxable income, the latter two of which involve the exercise of significant judgment.
Net Loss per Common Share	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 warrants, stock options and restricted stock units that could potentially dilute earnings per share in the future are not included in the computation of diluted earnings per share because they are antidilutive.
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.

Summary of Significant Accounting Policies	12 Months Ended
Summary of Significant Accounting Policies	Dec. 31, 2023
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies Basis of Presentation. The accompanying consolidated financial statements include the accounts of Lexicon and its wholly-owned subsidiaries. Intercompany transactions and balances are eliminated in consolidation. Lexicon has made certain reclassification adjustments to conform prior-period amounts to the current presentation. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. 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. 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 December 31, 2023 and 2022, short-term investments consist primarily of U.S. treasury bills as well as certain corporate and other debt securities. The Company’s short-term investments are available for use in current operations regardless of the stated maturity date of the security. These short-term investments are classified as available-for-sale securities as the Company has not historically or does not intend to sell any of its available-for-sale securities prior to their maturity dates. Short-term investments are carried at fair value, based on quoted market prices of the securities. The costs of securities sold is based on the specific identification method. Any net realized gains and losses, interest and dividends, and amortization of premium or accretion of discount are included in interest and other income. Unrealized gains and losses on such securities are reported as a separate component of stockholders’ equity. The Company reviews its portfolio of available-for-sale debt securities in an unrealized loss position. For those investments whose fair value is less than amortized cost, to the extent the Company decided to sell these investments prior to their maturity dates or was required to sell such investments, the Company would evaluate the expected cash flows to be received as compared to amortized cost and to determine if an expected credit loss has occurred. Accounts Receivable. Lexicon records trade accounts receivable in the normal course of business related to the sale of products or services, net of an allowance for expected credit losses. Concentration of Credit Risk. Lexicon’s cash equivalents, investments and accounts receivable represent potential concentrations of credit risk. The Company attempts to minimize potential concentrations of risk in cash equivalents and investments by placing investments in high-quality financial instruments. The Company has not experienced any realized losses on its cash equivalents or short-term investments. The Company’s accounts receivable are unsecured and are primarily concentrated in large pharmaceutical and biotechnology companies located in the United States. The Company has not experienced any significant credit losses to date. Segment Information and Significant Customers. Lexicon operates in one business segment, which primarily focuses on the discovery, development and commercialization of pharmaceutical products for the treatment of human disease. Substantially all of the Company’s revenues have been derived from drug discovery alliances, target validation collaborations for the development and, in some cases, analysis of the physiological effects of genes altered in knockout mice, technology licenses, subscriptions to its databases, product sales, government grants and contracts and compound library sales, as well as from commercial sales of its approved drug products. In support of the commercial launch of INPEFA in 2023, the Company entered into distribution agreements with wholesalers and limited retail pharmacies. The Company’s net product sales are generated from sales to these customers. In 2023, 11 United States-based customers accounted for all of the Company’s net product revenue. Three large wholesalers, each of which account for greater than 10% of total revenues and in the aggregate account for greater than 85% of total revenues. In 2022 and 2021, the Company’s revenues were solely derived from royalties and other revenues from one and two customers, respectively. Property and Equipment. Property and equipment that is held and used is carried at cost and depreciated using the straight-line method over the estimated useful life of the assets, which ranges from three to 40 years. Maintenance, repairs and minor replacements are charged to expense as incurred. Leasehold improvements are amortized over the shorter of the estimated useful life or the remaining lease term. Significant renewals and betterments are capitalized. Impairment of Long-Lived Assets. Long-lived assets and right-of-use assets for leases are reviewed for impairment when events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Recoverability of assets to be held and used is measured by comparison of the carrying amount of an asset to future net cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount that the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell. There were no impairments of long-lived assets, in 2023, 2022, or 2021. Goodwill. Goodwill is not amortized, but is tested at least annually for impairment at the reporting unit level which the Company has determined is the single operating segment disclosed in its current financial statements. An impairment exists when the carrying amount of goodwill exceeds its implied fair value. Additional impairment assessments may be performed on an interim basis if the Company encounters events or changes in circumstances that would indicate that, more likely than not, the carrying value of goodwill has been impaired. Leases. Lexicon determines if a contract is or contains a lease at inception or upon modification of the contract. A contract is or contains a lease if it conveys the right to control the use of an identified asset for a period in exchange for consideration. Control over the use of the identified asset means the lessee has both (a) the right to obtain substantially all of the economic benefits from the use of the asset and (b) the right to direct the use of the asset. Lexicon does not apply this accounting to those leases with terms of twelve (12) months or less. 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. Inventory: Inventory is comprised of INPEFA, the Company’s approved product that it is commercializing in the United States. Inventories are determined at the lower of cost or market value, with cost determined under the specific identification method. Revenue Recognition. The Company performs the following five steps in determining the amount of revenue to recognize as it fulfills its performance obligations under each of its collaborative agreements: (a) identify the contract(s) with a customer; (b) identify the performance obligation in the contract; (c) determine the transaction price; (d) allocate the transaction price to the performance obligation in the contract, and (e) recognize revenue when (or as) the Company satisfies the performance obligation. The Company applies this five-step model to contracts when it is probable that the Company will collect the consideration it is entitled to in exchange for the goods or services it transfers to the customer. At contract inception, the Company assesses the goods or services promised within each contract and determines those that are performance obligations, and assesses whether each promised good or service is distinct. The Company then recognizes as revenue the amount of the transaction price that is allocated to the respective performance obligation when (or as) the performance obligation is satisfied. The Company develops assumptions that require judgment to determine the stand-alone selling price for each performance obligation identified in the contract. Product Revenues Product revenues consist of U.S. sales of INPEFA, which Lexicon began shipping to its customers in the U.S. in June 2023. These customers primarily include wholesalers and limited retail pharmacies. The Company is continuing 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. The Company recognizes product revenue net of applicable estimates of reserves for variable consideration using the expected value 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 were 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. Chargebacks. Chargebacks are discounts that occur when contracted healthcare providers purchase directly from a wholesaler. Generally, the contracted 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. 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. At contract inception, the Company evaluates whether development milestones are considered probable of being reached and estimates the amount to be included in the transaction price using the most likely amount method. If it is probable that a significant revenue reversal will not occur, the associated development milestone value is included in the transaction price. Development milestones that are not within the control of the Company or the licensee, including those requiring regulatory approval, are not considered probable of being achieved until those approvals are received. The transaction price is allocated to each performance obligation on a relative stand-alone selling price basis, for which the Company recognizes revenue when (or as) the performance obligation is satisfied. At the end of each reporting period, the Company re-evaluates the probability of achievement of the development milestones and any related constraint, and if necessary, adjusts its estimates of the overall transaction price. Any such adjustments are recorded on a cumulative catch-up basis, which would affect collaboration revenues in the period of adjustment. For agreements in which a license to the Company’s intellectual property is determined distinct from other performance obligations identified in the agreement, the Company recognizes revenue when the license is transferred to the licensee and the licensee is able to use and benefit from the license. For agreements that include sales-based royalties, including milestones based on a level of sales, the license is deemed to be the predominant item to which the royalties relate and the Company recognizes revenue at the later of (a) when the related sales occur, or (b) when the performance obligation to which some or all of the royalty has been allocated has been satisfied (or partially satisfied). The Company may receive payments from its licensees based on billing schedules established in each contract. Upfront payments and fees are recorded as deferred revenue upon receipt or when due, and may require deferral of revenue recognition to a future period until the Company performs its obligations under these agreements. Amounts are recorded as accounts receivable when the Company’s right to consideration is unconditional. Cost of Sales. Cost of sales consists of third-party manufacturing costs, product shipping and handling costs and freight associated with sales of INPEFA. The Company began capitalizing inventory manufactured subsequent to regulatory approval of INPEFA in June 2023, as the related costs were expected to be recovered through the commercialization of the product. Costs related to manufacturing inventory prior to the approval of INPEFA have been recorded as research and development expense in the 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 completion of milestones. 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. Stock-Based Compensation. 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. Forfeitures of share-based payment awards are recognized in the period in which they occur. Compensation expense is recorded in research and development expense and selling, general, and administrative expense as noted on the Company’s consolidated statements of comprehensive loss. Income Taxes. The Company recognizes deferred tax liabilities and assets for the expected future tax consequences of events that have been recognized differently in the financial statements and tax returns. The Company uses the liability method in accounting for income taxes. Under this method, deferred tax liabilities and assets are determined based on the difference between the financial statement carrying amounts and tax bases of liabilities and assets using enacted tax rates and laws in effect in the years in which the differences are expected to reverse. Deferred tax assets are evaluated for realization based on a more-likely-than-not criteria in determining if a valuation allowance should be provided. In evaluating our valuation allowances, we consider cumulative book losses, the reversal of existing temporary differences, tax planning strategies and estimates of future taxable income, the latter two of which involve the exercise of significant judgment. 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 warrants, stock options and restricted stock units that could potentially dilute earnings per share in the future are not included in the computation of diluted earnings per share because they are antidilutive. 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.

Income Taxes - Narrative (Details) - USD ($) $ in Thousands	12 Months Ended
Income Taxes - Narrative (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Operating Loss Carryforwards [Line Items]
Increase in valuation allowance	$ 44,400
Unrecognized tax benefits	0	$ 0
Accruals for interest or penalties	0	$ 0
Domestic Tax Authority
Operating Loss Carryforwards [Line Items]
NOL carryforwards	1,300,000
Indefinite NOL carryforwards	606,500
State and Local Jurisdiction
Operating Loss Carryforwards [Line Items]
NOL carryforwards	$ 169,600

Equity Incentive Awards - Summary of Stock Option Activity (Details) - $ / shares	12 Months Ended
	Dec. 31, 2023
Options
Outstanding at end of year (in shares)	23,719,712
Options
Options
Outstanding at beginning of year (in shares)	12,349,000
Granted (in shares)	8,091,000
Exercised (in shares)	0
Expired (in shares)	(152,000)
Forfeited (in shares)	(1,583,000)
Outstanding at end of year (in shares)	18,705,000
Exercisable (in shares)	8,280,000
Weighted Average Exercise Price
Outstanding at beginning of year (in dollars per share)	$ 5.10
Granted (in dollars per share)	2.29
Exercised (in dollars per share)	0
Expired (in dollars per share)	14.68
Forfeited (in dollars per share)	3.66
Outstanding at end of year (in dollars per share)	3.93
Exercisable (in dollars per share)	$ 5.58

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Dec. 31, 2023
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

Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-In Capital	Accumulated Deficit	Accumulated Other Comprehensive Gain (Loss)	Treasury Stock
Beginning balance (in shares) at Dec. 31, 2020		142,289,000
Beginning balance at Dec. 31, 2020	$ 156,371	$ 142	$ 1,561,096	$ (1,400,018)	$ (6)	$ (4,843)
Stock-based compensation	10,577		10,577
Issuance of common stock, net of fees (in shares)		6,177,000
Issuance of common stock, net of fees	35,491	$ 6	35,485
Issuance of equity-classified warrants	0
Issuance of common stock under Equity Incentive Plans (in shares)		1,616,000
Issuance of common stock under Equity Incentive Plans	1,593	$ 2	1,591
Repurchase of common stock	(2,675)					(2,675)
Net loss	(87,758)			(87,758)
Unrealized gain (loss) on investments	(4)				(4)
Ending balance (in shares) at Dec. 31, 2021		150,082,000
Ending balance at Dec. 31, 2021	113,595	$ 150	1,608,749	(1,487,776)	(10)	(7,518)
Stock-based compensation	11,520		11,520
Issuance of common stock, net of fees (in shares)		39,100,000
Issuance of common stock, net of fees	94,205	$ 39	94,166
Issuance of equity-classified warrants	1,030		1,030
Issuance of treasury stock	0		(6,321)			6,321
Issuance of common stock under Equity Incentive Plans (in shares)		32,000
Repurchase of common stock	(864)					(864)
Net loss	(101,944)			(101,944)
Unrealized gain (loss) on investments	$ (418)				(418)
Ending balance (in shares) at Dec. 31, 2022	189,213,948	189,214,000
Ending balance at Dec. 31, 2022	$ 117,124	$ 189	1,709,144	(1,589,720)	(428)	(2,061)
Stock-based compensation	14,340		14,340
Issuance of common stock, net of fees (in shares)		55,288,000
Issuance of common stock, net of fees	138,823	$ 55	138,768
Issuance of equity-classified warrants	307		307
Issuance of common stock under Equity Incentive Plans (in shares)		1,291,000
Issuance of common stock under Equity Incentive Plans	0	$ 1	(1)
Repurchase of common stock	(824)					(824)
Net loss	(177,119)			(177,119)
Unrealized gain (loss) on investments	$ 459				459
Ending balance (in shares) at Dec. 31, 2023	245,792,668	245,793,000
Ending balance at Dec. 31, 2023	$ 93,110	$ 245	$ 1,862,558	$ (1,766,839)	$ 31	$ (2,885)

Equity Incentive Awards - Narrative (Details) - USD ($)	12 Months Ended			84 Months Ended
Equity Incentive Awards - Narrative (Details) - USD ($)	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock available for future grants (in shares)	24,047,212			24,047,212
Options outstanding (in shares)	23,719,712			23,719,712
Stock-based compensation costs	$ 14,300,000	$ 11,500,000	$ 10,600,000
Future stock-based compensation cost for outstanding unvested awards	$ 26,800,000			$ 26,800,000
Future stock-based compensation cost for outstanding unvested awards, weighted-average recognition period	1 year 2 months 12 days
Issuance of treasury stock		0
Treasury Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Issuance of treasury stock		$ 6,321,000
Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Aggregate value	$ 400,000			$ 400,000
Common stock reserved for issuance, exercisable (in shares)	8,280,000			8,280,000
Options outstanding (in shares)	18,705,000	12,349,000		18,705,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period	0
Weighted average estimated grant date fair value (in dollars per share)	$ 1.78	$ 2.30	$ 4.85
Weighted average remaining contractual term of stock options outstanding	7 years 6 months
Weighted average remaining contractual term of stock options exercisable	5 years 7 months 6 days
Aggregate intrinsic value of exercisable stock options	$ 0			$ 0
Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock units outstanding (in shares)	5,015,000	2,748,000		5,015,000
Fair value of shares vested	$ 2,900,000	$ 2,900,000	$ 8,700,000
Granted (in shares)	4,199,000
Weighted average grant date fair value (in dollars per share)	$ 2.43
Restricted Stock Units (RSUs) \| Officers and non-employee directors
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares)	64,256	74,416	32,192
Weighted average grant date fair value (in dollars per share)	$ 2.36	$ 1.77	$ 5.04
2017 Equity Incentive Plan and 2017 Non-Employee Directors' Equity Incentive Plan \| Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options outstanding (in shares)	18,705,022			18,705,022
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period				2,285,702
2017 Equity Incentive Plan and 2017 Non-Employee Directors' Equity Incentive Plan \| Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock units outstanding (in shares)	5,014,690			5,014,690
Common stock issued (in shares)				6,730,226
2017 Equity Incentive Plan and 2017 Non-Employee Directors' Equity Incentive Plan \| Restricted Stock Award (RSAs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock issued (in shares)				217,148
2017 Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options exercise price, percent of fair market value on date of grant	100.00%
Vesting period	4 years
Award term	10 years
Common stock authorized (in shares)	55,000,000			55,000,000
2017 Equity Incentive Plan \| Restricted Stock Units (RSUs) \| Share-Based Payment Arrangement, Tranche One
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting percentage	33.33%
2017 Equity Incentive Plan \| Restricted Stock Units (RSUs) \| Share-Based Payment Arrangement, Tranche Two
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting percentage	33.33%
2017 Equity Incentive Plan \| Restricted Stock Units (RSUs) \| Share-Based Payment Arrangement, Tranche Three
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting percentage	33.33%
2017 Non-Employee Directors' Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award term	10 years
Common stock authorized (in shares)	2,000,000			2,000,000
2017 Non-Employee Directors' Equity Incentive Plan \| Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Aggregate value	$ 500,000			$ 500,000
2017 Non-Employee Directors' Equity Incentive Plan \| Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	1 year

Cash, Cash Equivalents and Investments

12 Months Ended

Dec. 31, 2023

Cash, Cash Equivalents, and Short-Term Investments [Abstract]

Cash, Cash Equivalents and Investments

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


	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 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

For the years ended December 31, 2023 and 2022, our investments in an unrealized loss position had an estimated fair value of $58.5 million and $89.0 million, respectively. There were no realized gains or losses for the years ended December 31, 2023, 2022, and 2021.

Cash, Cash Equivalents and Investments - Narrative (Details) - USD ($)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Cash, Cash Equivalents, and Short-Term Investments [Abstract]
Investments in an unrealized loss position, fair value	$ 58,500,000	$ 89,000,000
Realized gains (losses)	$ 0	$ 0	$ 0

Equity Incentive Awards (Tables)

12 Months Ended

Dec. 31, 2023

Share-Based Payment Arrangement [Abstract]

Summary of Stock Option Activity

Stock Options. The following is a summary of stock option activity under Lexicon’s equity incentive plans for the year ended December 31, 2023:


	As of December 31, 2023
(in thousands, except exercise price data)	Options	Weighted Average Exercise Price
Outstanding at beginning of year	12,349	$	5.10
Granted	8,091	2.29
Exercised	—	—
Expired	(152)	14.68
Forfeited	(1,583)	3.66
Outstanding at end of year	18,705	3.93
Exercisable at end of year	8,280	$	5.58

Summary of Weighted-Average Stock Options Assumptions

The following weighted-average assumptions were used for stock options granted in the years ended December 31, 2023, 2022 and 2021, respectively:


	Expected Volatility	Risk-free Interest Rate	Expected Term	Dividend Rate
December 31, 2023:
Employees	110%	3.9%	4	0	%
Officers and non-employee directors	98%	4.0%	6	0	%
December 31, 2022:
Employees	109%	2.8%	4	0	%
Officers and non-employee directors	91%	1.9%	7	0	%
December 31, 2021:
Employees	104%	0.7%	4	0	%
Officers and non-employee directors	90%	1%	6	0	%

Summary of Restricted Stock Units Activity

The following is a summary of restricted stock units activity under Lexicon’s stock-based compensation plans for the year ended December 31, 2023:


	Shares	Weighted Average Grant Date Fair Value
	(in thousands)
Outstanding at December 31, 2022	2,748	$	3.78
Granted	4,199	2.43
Vested	(1,291)	3.80
Forfeited	(641)	2.72
Outstanding at December 31, 2023	5,015	$	2.78

Equity Incentive Awards - Summary of Weighted-Average Stock Options Assumptions (Details) - Options	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Employees
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected Volatility	110.00%	109.00%	104.00%
Risk-free Interest Rate	3.90%	2.80%	0.70%
Expected Term	4 years	4 years	4 years
Dividend Rate	0.00%	0.00%	0.00%
Officers and non-employee directors
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected Volatility	98.00%	91.00%	90.00%
Risk-free Interest Rate	4.00%	1.90%	1.00%
Expected Term	6 years	7 years	6 years
Dividend Rate	0.00%	0.00%	0.00%

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 35
-Paragraph 1D
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480483/718-10-35-1D

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 35
-Paragraph 3
-Publisher FASB
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+ Details

Cash, Cash Equivalents and Investments - Schedule of Cash and Cash Equivalents and Investments (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Fair Value
Estimated Fair Value	$ 147,561	$ 92,012
Cash and cash equivalents
Fair Value
Amortized Cost	22,465	46,345
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	0
Estimated Fair Value	22,465	46,345
Total short-term investments
Fair Value
Amortized Cost	147,531	92,440
Gross Unrealized Gains	42	0
Gross Unrealized Losses	(12)	(428)
Estimated Fair Value	147,561	92,012
U.S. treasury securities
Fair Value
Amortized Cost	141,577	74,022
Gross Unrealized Gains	31	0
Gross Unrealized Losses	(12)	(342)
Estimated Fair Value	141,596	73,680
Corporate debt securities
Fair Value
Amortized Cost	5,954	18,418
Gross Unrealized Gains	11	0
Gross Unrealized Losses	0	(86)
Estimated Fair Value	5,965	18,332
Total cash and cash equivalents and investments
Fair Value
Amortized Cost	169,996	138,785
Gross Unrealized Gains	42	0
Gross Unrealized Losses	(12)	(428)
Estimated Fair Value	$ 170,026	$ 138,357

Debt Obligations	12 Months Ended
Debt Obligations	Dec. 31, 2023
Debt Disclosure [Abstract]
Debt Obligations	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, June 2023 and December 2023. The Company incurred debt issuance costs of $0.3 million in connection with the December 2023 amendment which extended the fourth tranche period and modified the existing financial covenant relating to net sales of INPEFA and the minimum cash and investments balance requirement. In March 2024, the Company entered into a fifth amendment further modifying the existing financial covenant relating to net sales of INPEFA. 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 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 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 payment period as described below. A final payment exit fee equal to 6% of the amount funded under the Oxford Term Loans is due upon prepayment or maturity. The final payment exit fee of $6 million as of December 31, 2023, in the aggregate for the three borrowed tranches, is recorded as a debt discount on the consolidated balance sheet. Concurrent with the funding 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. As of December 31, 2023, the carrying value of the Oxford Term Loans on the consolidated balance sheet was $99.5 million, reflecting an unamortized discount of $6.5 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 and other 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. 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 December 31, 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% for the third and fourth tranches. As of December 31, 2023, the weighted average interest rate of the Oxford Term Loans was 12.9%. During the year ended December 31, 2023, the Company recognized interest expense of $11.6 million, including $1.5 million in amortization of discount and related debt issuance 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 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 includes a separate financial covenant relating to net sales of INPEFA as noted above. The Company was in compliance with its debt covenants as of December 31, 2023, and has classified its debt as long-term based on its intent and ability to refinance with completed equity financing (see Note 13) if the Company is unable to meet these financial covenants within one year.

- 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
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-Name Accounting Standards Codification
-Section 50
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-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
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-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
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-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
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-Section 50
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-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1C

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
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-Section 50
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-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1C

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
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-Paragraph 1E
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-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1E

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
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-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
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-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

Consolidated Statements of Comprehensive Loss - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Revenues:
Net product revenue	$ 1,110	$ 0	$ 0
Royalties and other revenue	94	139	298
Total revenues	1,204	139	298
Operating expenses:
Cost of sales	85	0	0
Research and development, including stock-based compensation of $5,139, $4,253 and $4,284 respectively	58,887	52,816	55,046
Selling, general and administrative, including stock-based compensation of $9,201, $7,267 and $6,293, respectively	113,982	48,083	32,342
Total operating expenses	172,954	100,899	87,388
Loss from operations	(171,750)	(100,760)	(87,090)
Other Expenses	(13,101)	(2,780)	(802)
Interest income and other, net	7,732	1,596	134
Net loss	$ (177,119)	$ (101,944)	$ (87,758)
Net loss per common share, basic (usd per share)	$ (0.80)	$ (0.62)	$ (0.60)
Net loss per common share, diluted (usd per share)	$ (0.80)	$ (0.62)	$ (0.60)
Shares used in computing net loss per common share, basic	221,130	165,733	145,652
Shares used in computing net loss per common share, diluted	221,130	165,733	145,652
Other comprehensive loss:
Unrealized gain (loss) on investments	$ 459	$ (418)	$ (4)
Comprehensive loss	$ (176,660)	$ (102,362)	$ (87,762)

Debt Obligations (Details)		1 Months Ended	12 Months Ended
Debt Obligations (Details)	May 31, 2023	Jun. 30, 2023 USD ($) $ / shares Rate shares	Dec. 31, 2027 USD ($)	Dec. 31, 2026 USD ($)	Dec. 31, 2025 USD ($)	Dec. 31, 2023 USD ($) d Rate	Dec. 31, 2022 USD ($) $ / shares shares	Mar. 31, 2022 USD ($) $ / shares shares
Line of Credit Facility [Line Items]
Long-term debt, net						$ 99,508,000	$ 48,579,000
Term Loan \| Oxford Finance LLC Term Loans \| Line of Credit
Line of Credit Facility [Line Items]
Term loan borrowing capacity								$ 150,000,000
Debt issuance costs						$ 300,000
Exit fee percentage \| Rate						6.00%
Exit fee payment						$ 6,000,000
Term for exercise of warrants						5 years
Long-term debt, net						$ 99,500,000
Unamortized discount on debt						$ 6,500,000
Interest-only payment period						36 months
Weighted average interest rate	8.01%					12.90%
Incremental interest rate \| Rate		0.10%
Interest expense						$ 11,600,000
Amortization of discount and related debt costs						1,500,000
Minimum required cash and investments balance						$ 10,000,000
Covenant compliance period						1 year
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 \| 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 \| 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 \| 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 \| 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 \| SOFR
Line of Credit Facility [Line Items]
Basis spread on variable rate \| Rate		7.00%
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 \| SOFR
Line of Credit Facility [Line Items]
Basis spread on variable rate \| Rate		7.00%
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

Commitments and Contingencies (Tables)

12 Months Ended

Dec. 31, 2023

Commitments and Contingencies Disclosure [Abstract]

Schedule of Undiscounted Cash Flows of Operating Lease Liability

The following table reconciles the undiscounted cash flows of the operating lease liability to the recorded lease liability at December 31, 2023:



	(in thousands)
2024	$	1,378
2025	1,220
2026	865
2027	881
2028	898
Thereafter	4,746
Total undiscounted operating lease liability	$	9,988
Less: amount of lease payments representing interest	(3,432)
Present value of future lease payments	6,556
Less: short-term operating lease liability	(1,291)
Long-term operating lease liability	$	5,265

Property and Equipment (Tables)

12 Months Ended

Dec. 31, 2023

Property, Plant and Equipment [Abstract]

Summary of Property and Equipment

Property and equipment at December 31, 2023 and 2022 are as follows:


	Estimated Useful Lives	As of December 31,
	In Years	2023		2022
		(in thousands)
Computers and software	3-5	$	2,408	$	2,209
Furniture and fixtures	5-7	1,939		1,794

Leasehold improvements	3-7	2,178		2,052


Total property and equipment		6,525		6,055
Less: Accumulated depreciation and amortization		(4,538)		(3,984)
Net property and equipment		$	1,987	$	2,071

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Cash flows from operating activities:
Net loss	$ (177,119)	$ (101,944)	$ (87,758)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	554	427	292
Stock-based compensation	14,340	11,520	10,577
Amortization of debt-related costs	1,774	741	54
Loss on disposal of property and equipment	0	3	49
Other non-cash adjustments	(4,105)	0	0
Changes in operating assets and liabilities:
(Increase) decrease in accounts receivable	(982)	(14)	381
Increase in inventories	(381)	0	0
(Increase) decrease in prepaid expenses and other current assets	(2,899)	(316)	2,885
Decrease in other long-term assets	467	656	661
Increase (decrease) in accounts payable and other liabilities	6,454	76	(14,158)
Net cash used in operating activities	(161,897)	(88,851)	(87,017)
Cash flows from investing activities:
Purchases of property and equipment	(470)	(1,326)	(1,221)
Purchases of investments	(223,343)	(133,949)	(34,261)
Maturities of investments	173,870	64,197	37,592
Net cash (used in) provided by investing activities	(49,943)	(71,078)	2,110
Cash flows from financing activities:
Proceeds from issuance of common stock, net of fees	138,823	94,205	37,084
Repurchase of common stock	(824)	(864)	(2,675)
Proceeds (repayment) of debt borrowings, net of fees	49,961	48,868	(11,700)
Net cash provided by financing activities	187,960	142,209	22,709
Net decrease in cash and cash equivalents	(23,880)	(17,720)	(62,198)
Cash and cash equivalents at beginning of year	46,345	64,065	126,263
Cash and cash equivalents at end of year	22,465	46,345	64,065
Supplemental disclosure of cash flow information:
Cash paid for interest	10,057	2,289	799
Supplemental disclosure of noncash investing and financing activities:
Right-of-use assets obtained in exchange for operating lease liability	0	5,206	1,704
Issuance of equity-classified warrants	307	1,030	0
Issuance of treasury stock	0	6,321	0
Accrual of deferred financing costs	$ 250	$ 0	$ 0

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

Income Tax Disclosure [Abstract]

Schedule of Effective Tax Rate Reconciliation

Effective Tax Rate Reconciliation. A reconciliation of the statutory tax rate to the effective tax rate for the years ended December 31, 2023, 2022 and 2021 consists of the following:


	Year Ended December 31,
	2023		2022		2021
	(in thousands)
Expected income tax expense (benefit) at 21%	$	(37,196)	$	(21,408)	$	(18,429)
State income taxes, net of federal benefit	(3,895)		—		—
Equity compensation	1,530		1,627		851
Research and development credit	(712)		—		—


State income taxes, tax rate change	(4,723)		—		—


Change in valuation allowance	44,410		19,543		17,210
Other (1)	586		238		368
Income tax benefit	$	—	$	—	$	—

(1) Other is primarily comprised of expiring NOLs and nondeductible expenses for the year ended December 31, 2023 and nondeductible expenses for the years ended December 31, 2022 and 2021.

Schedule of Deferred Tax Assets (Liabilities)

The components of Lexicon’s deferred tax assets (liabilities) at December 31, 2023 and 2022 are as follows:


	As of December 31,
	2023		2022
	(in thousands)
Deferred tax assets:
Net operating loss carryforwards	$	288,264	$	251,331
Research and development tax credits	30,002		29,290
Orphan drug credits	24,524		24,524
Capitalized research and development	37,357		33,813
Stock-based compensation	6,965		5,445

Interest	1,359		398
Other	3,308		2,255
Total deferred tax assets	391,779		347,056
Deferred tax liabilities:

Other	(1,608)		(1,295)
Total deferred tax liabilities	(1,608)		(1,295)
Less: valuation allowance	(390,171)		(345,761)
Net deferred tax liabilities	$	—	$	—

Other Capital Agreements	12 Months Ended
Other Capital Agreements	Dec. 31, 2023
Equity [Abstract]
Other Capital Agreements	Other Capital Agreements Common Stock. In June 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 million, after deducting underwriting discounts and commissions and offering expenses. In August 2022, Lexicon sold an aggregate of 39,100,000 shares of its common stock at a price of $2.50 per share in a public offering and concurrent private placement to two affiliates of Invus, L.P., resulting in net proceeds of $94.2 million, after deducting underwriting discounts and commissions and offering expenses. In January 2021, Lexicon sold 2,000,000 shares of its common stock at a price of $8.463 per share under a previous Open Market Sale Agreement™ with Jefferies LLC, resulting in net proceeds of $16.4 million. In August and September 2021, Lexicon sold an aggregate of 4,176,953 shares of its common stock at a price of $4.732 per share under the sales agreement, resulting in net proceeds of $19.1 million. The net proceeds from each of these sales are reflected as issuances of common stock in the accompanying financial statements. 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. 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”). Following the approval of the New Charter by the Company’s shareholders, the adoption of the New Charter by the Company’s board of directors, and the filing and acceptance of the New Charter by the Secretary of State of Delaware, each share of preferred stock will automatically convert into 50 shares (subject to adjustments) of common stock.

Benefit Plan	12 Months Ended
Benefit Plan	Dec. 31, 2023
Defined Contribution Plan [Abstract]
Benefit Plan	Benefit Plan Lexicon maintains a defined-contribution savings plan under Section 401(k) of the Internal Revenue Code. The plan covers substantially all full-time employees. Participating employees may defer a portion of their pretax earnings, up to the Internal Revenue Service annual contribution limit. The Company matches employee contributions according to a specified formula. The matching contributions totaled $1.2 million, $0.7 million and $0.4 million in the years ended December 31, 2023, 2022 and 2021, respectively. Company contributions are vested based on the employee’s years of service, with full vesting after four years of service.

Cover Page - USD ($) $ in Millions	12 Months Ended
Cover Page - USD ($) $ in Millions	Dec. 31, 2023	Mar. 21, 2024	Jun. 30, 2023
Cover [Abstract]
Document Type	10-K
Document Annual Report	true
Document Period End Date	Dec. 31, 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., 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 per share
Trading Symbol	LXRX
Security Exchange Name	NASDAQ
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
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
ICFR Auditor Attestation Flag	false
Document Financial Statement Error Correction [Flag]	false
Entity Shell Company	false
Entity Public Float			$ 273.7
Entity Common Stock, Shares Outstanding		246,236,753
Documents Incorporated by Reference	Certain sections of the registrant’s definitive proxy statement relating to the registrant’s 2024 annual meeting of stockholders, which proxy statement will be filed under the Securities Exchange Act of 1934 within 120 days of the end of the registrant’s fiscal year ended December 31, 2023, are incorporated by reference into Part III of this annual report on Form 10-K.
Entity Central Index Key	0001062822
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	FY
Amendment Flag	false
Current Fiscal Year End Date	--12-31

Income Taxes - Schedule of Deferred Tax Assets (Liabilities) (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Deferred tax assets:
Net operating loss carryforwards	$ 288,264	$ 251,331
Research and development tax credits	30,002	29,290
Orphan drug credits	24,524	24,524
Capitalized research and development	37,357	33,813
Stock-based compensation	6,965	5,445
Interest	1,359	398
Other	3,308	2,255
Total deferred tax assets	391,779	347,056
Deferred tax liabilities:
Other	(1,608)	(1,295)
Total deferred tax liabilities	(1,608)	(1,295)
Less: valuation allowance	(390,171)	(345,761)
Net deferred tax liabilities	$ 0	$ 0

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Current assets:
Cash and cash equivalents	$ 22,465	$ 46,345
Short-term investments	147,561	92,012
Accounts receivable, net	1,010	28
Inventory	381	0
Prepaid expenses and other current assets	5,130	2,481
Total current assets	176,547	140,866
Property and equipment, net of accumulated depreciation and amortization of $4,538 and $3,984, respectively	1,987	2,071
Goodwill	44,543	44,543
Operating lease right-of-use-assets	5,524	6,407
Other assets	828	412
Total assets	229,429	194,299
Current liabilities:
Accounts payable	14,389	10,395
Accrued liabilities	17,157	12,777
Total current liabilities	31,546	23,172
Long-term debt, net	99,508	48,579
Long-term operating lease liabilities	5,265	5,424
Total liabilities	136,319	77,175
Commitments and contingencies (Note 10)
Stockholders' Equity:
Preferred stock, $0.01 par value; 5,000,000 shares authorized; no shares issued and outstanding	$ 0	$ 0
Common stock, shares authorized	300,000,000	300,000,000
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	1,862,558	1,709,144
Accumulated deficit	(1,766,839)	(1,589,720)
Accumulated other comprehensive income (loss)	31	(428)
Treasury stock, at cost, 867,973 and 488,205 shares, respectively	(2,885)	(2,061)
Total stockholders' equity	93,110	117,124
Total liabilities and stockholders’ equity	$ 229,429	$ 194,299

Commitments and Contingencies - Schedule of Undiscounted Cash Flows of Operating Lease Liability (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Commitments and Contingencies Disclosure [Abstract]
2024	$ 1,378
2025	1,220
2026	865
2027	881
2028	898
Thereafter	4,746
Total undiscounted operating lease liability	9,988
Less: amount of lease payments representing interest	(3,432)
Present value of future lease payments	6,556
Less: short-term operating lease liability	(1,291)	$ (1,291)
Long-term operating lease liabilities	$ 5,265	$ 5,424

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Statement of Financial Position [Abstract]
Accumulated depreciation and amortization, property and equipment	$ 4,538	$ 3,984
Preferred stock, par value per share (usd 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 (usd per share)	$ 0.001	$ 0.001
Common stock, shares authorized	300,000,000	300,000,000
Common stock, issued (in shares)	245,792,668	189,213,948
Treasury stock, at cost (in shares)	867,973	488,205

Other Capital Agreements (Details) - USD ($) $ / shares in Units, $ in Thousands		1 Months Ended			2 Months Ended	12 Months Ended
	Mar. 11, 2024	Jun. 30, 2023	Aug. 31, 2022	Jan. 31, 2021	Sep. 30, 2021	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Class of Stock [Line Items]
Shares sold		55,288,460	39,100,000	2,000,000	4,176,953
Shares sold, price per share (usd per share)		$ 2.60	$ 2.50	$ 8.463	$ 4.732
Proceeds from issuance of common stock, net of fees		$ 139,000	$ 94,200	$ 16,400	$ 19,100	$ 138,823	$ 94,205	$ 37,084
Preferred stock, par value per share (usd per share)						$ 0.01	$ 0.01
Common stock, shares authorized						300,000,000	300,000,000
Subsequent Event
Class of Stock [Line Items]
Common stock, shares authorized	450,000,000
Subsequent Event \| Private Placement
Class of Stock [Line Items]
Net proceeds from sale of stock	$ 242,000
Number of common stock shares issued for each preferred stock share upon conversion	50
Series A Preferred Stock \| Subsequent Event \| Private Placement
Class of Stock [Line Items]
Shares sold	2,304,147
Preferred stock, par value per share (usd per share)	$ 0.01
Sale of stock, price per share (usd per share)	$ 108.50

Fair Value Measurements

12 Months Ended

Dec. 31, 2023

Fair Value Disclosures [Abstract]

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 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 include 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 December 31, 2023 and 2022. There were no transfers between Level 1 and Level 2 during the periods presented.


	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


	Assets at Fair Value
	As of December 31, 2022
	Level 1		Level 2		Level 3		Total
	(in thousands)

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 carrying amount of cash and cash equivalents, prepaid expenses and other assets, accounts payable and accrued expenses are generally considered to be representative of their respective fair values because of the short-term nature of those instruments. The fair value of the Oxford Term Loans (see Note 9) 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.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Goodwill	12 Months Ended
Goodwill	Dec. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill	Goodwill Lexicon recorded goodwill from previous acquisitions prior to 2011 of $44.5 million, representing the excess of purchase price over the fair value of the underlying net identifiable assets including the effects of deferred taxes. Goodwill is not subject to amortization, but is tested at least annually on its assessment date for impairment at the reporting unit level, which is the Company’s single operating segment. There was no impairment of goodwill in 2023, 2022 or 2021.

Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2023

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 December 31, 2023 and 2022. There were no transfers between Level 1 and Level 2 during the periods presented.


	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


	Assets at Fair Value
	As of December 31, 2022
	Level 1		Level 2		Level 3		Total
	(in thousands)

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

Property and Equipment (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Property, Plant and Equipment [Line Items]
Total property and equipment	$ 6,525	$ 6,055
Less: Accumulated depreciation and amortization	(4,538)	(3,984)
Net property and equipment	$ 1,987	2,071
Minimum
Property, Plant and Equipment [Line Items]
Estimated Useful Lives	3 years
Maximum
Property, Plant and Equipment [Line Items]
Estimated Useful Lives	40 years
Computers and software
Property, Plant and Equipment [Line Items]
Total property and equipment	$ 2,408	2,209
Computers and software \| Minimum
Property, Plant and Equipment [Line Items]
Estimated Useful Lives	3 years
Computers and software \| Maximum
Property, Plant and Equipment [Line Items]
Estimated Useful Lives	5 years
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Total property and equipment	$ 1,939	1,794
Furniture and fixtures \| Minimum
Property, Plant and Equipment [Line Items]
Estimated Useful Lives	5 years
Furniture and fixtures \| Maximum
Property, Plant and Equipment [Line Items]
Estimated Useful Lives	7 years
Leasehold improvements
Property, Plant and Equipment [Line Items]
Total property and equipment	$ 2,178	$ 2,052
Leasehold improvements \| Minimum
Property, Plant and Equipment [Line Items]
Estimated Useful Lives	3 years
Leasehold improvements \| Maximum
Property, Plant and Equipment [Line Items]
Estimated Useful Lives	7 years

Supplemental Financial Information

12 Months Ended

Dec. 31, 2023

Balance Sheet Related Disclosures [Abstract]

Supplemental Financial Information

The following tables show the Company’s additional balance sheet information as of December 31, 2023 and 2022:


	As of December 31,
	2023		2022
	(in thousands)
Inventories:
Raw materials	$	—	$	—
Work-in-progress	100		—
Finished goods	281		—
Inventory	$	381	$	—


	As of December 31,
	2023		2022
	(in thousands)
Accrued Liabilities:
Accrued research and development services	$	3,705	$	3,252
Accrued compensation and benefits	9,591		7,830
Short term lease liability	1,291		1,291
Other	2,570		404
Accrued liabilities	$	17,157	$	12,777

Property and Equipment

12 Months Ended

Dec. 31, 2023

Property, Plant and Equipment [Abstract]

Property and Equipment

Property and equipment at December 31, 2023 and 2022 are as follows:


	Estimated Useful Lives	As of December 31,
	In Years	2023		2022
		(in thousands)
Computers and software	3-5	$	2,408	$	2,209
Furniture and fixtures	5-7	1,939		1,794

Leasehold improvements	3-7	2,178		2,052


Total property and equipment		6,525		6,055
Less: Accumulated depreciation and amortization		(4,538)		(3,984)
Net property and equipment		$	1,987	$	2,071

Pay vs Performance Disclosure - USD ($) $ in Thousands	12 Months Ended
Pay vs Performance Disclosure - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Pay vs Performance Disclosure
Net loss	$ (177,119)	$ (101,944)	$ (87,758)

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(g)(1)(ii))
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 323
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-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481687/323-10-50-3

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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-Section 50
-Paragraph 28
-Subparagraph (f)
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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-URI https://asc.fasb.org//1943274/2147482765/220-10-50-6

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483443/250-10-50-3

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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-Paragraph 1
-Subparagraph (b)(2)
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 815
-SubTopic 40
-Name Accounting Standards Codification
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-Paragraph 1
-Subparagraph (f)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480175/815-40-65-1

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 250
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-Name Accounting Standards Codification
-Section 50
-Paragraph 9
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483443/250-10-50-9

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 250
-SubTopic 10
-Name Accounting Standards Codification
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-Paragraph 11
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-URI https://asc.fasb.org//1943274/2147483443/250-10-50-11

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 250
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Reference 12: http://www.xbrl.org/2003/role/disclosureRef
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-URI https://asc.fasb.org//1943274/2147483443/250-10-50-4

Reference 13: http://www.xbrl.org/2003/role/exampleRef
-Topic 946
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-Name Accounting Standards Codification
-Section 55
-Paragraph 10
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480167/946-830-55-10

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 220
-Name Accounting Standards Codification
-Section 45
-Paragraph 7
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483581/946-220-45-7

Reference 15: http://www.xbrl.org/2003/role/disclosureRef
-Topic 944
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Reference 16: http://www.xbrl.org/2003/role/disclosureRef
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Reference 17: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Benefit Plan (Details) - USD ($) $ in Millions	12 Months Ended
Benefit Plan (Details) - USD ($) $ in Millions	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Defined Contribution Plan [Abstract]
Matching contributions	$ 1.2	$ 0.7	$ 0.4
Years of service	4 years

Cash, Cash Equivalents and Investments (Tables)

12 Months Ended

Dec. 31, 2023

Cash, Cash Equivalents, and Short-Term Investments [Abstract]

Schedule of Cash and Cash Equivalents and Investments

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


	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 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

Goodwill (Details) - USD ($) $ in Thousands	12 Months Ended
Goodwill (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021	Jul. 30, 2010
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill	$ 44,543	$ 44,543		$ 44,500
Goodwill impairment	$ 0	$ 0	$ 0

- Definition

Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized.

+ References + Details

Fair Value Measurements (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Fair Value
Cash and cash equivalents	$ 22,465	$ 46,345
Short-term investments	147,561	92,012
Total cash and cash equivalents and investments	170,026	138,357
Level 1
Fair Value
Cash and cash equivalents	22,465	46,345
Short-term investments	141,596	73,680
Total cash and cash equivalents and investments	164,061	120,025
Level 2
Fair Value
Cash and cash equivalents	0	0
Short-term investments	5,965	18,332
Total cash and cash equivalents and investments	5,965	18,332
Level 3
Fair Value
Cash and cash equivalents	0	0
Short-term investments	0	0
Total cash and cash equivalents and investments	$ 0	$ 0

Income Taxes - Schedule of Effective Tax Rate Reconciliation (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Income Tax Disclosure [Abstract]
Expected income tax expense (benefit) at 21%	$ (37,196)	$ (21,408)	$ (18,429)
State income taxes, net of federal benefit	(3,895)	0	0
Equity compensation	1,530	1,627	851
Research and development credit	(712)	0	0
State income taxes, tax rate change	(4,723)	0	0
Change in valuation allowance	44,410	19,543	17,210
Other	586	238	368
Income tax benefit	$ 0	$ 0	$ 0

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References + Details

Income Taxes

12 Months Ended

Dec. 31, 2023

Income Tax Disclosure [Abstract]

Income Taxes

Effective Tax Rate Reconciliation. A reconciliation of the statutory tax rate to the effective tax rate for the years ended December 31, 2023, 2022 and 2021 consists of the following:


	Year Ended December 31,
	2023		2022		2021
	(in thousands)
Expected income tax expense (benefit) at 21%	$	(37,196)	$	(21,408)	$	(18,429)
State income taxes, net of federal benefit	(3,895)		—		—
Equity compensation	1,530		1,627		851
Research and development credit	(712)		—		—


State income taxes, tax rate change	(4,723)		—		—


Change in valuation allowance	44,410		19,543		17,210
Other (1)	586		238		368
Income tax benefit	$	—	$	—	$	—

(1) Other is primarily comprised of expiring NOLs and nondeductible expenses for the year ended December 31, 2023 and nondeductible expenses for the years ended December 31, 2022 and 2021.

Deferred Tax Assets and Liabilities. Lexicon recognizes deferred tax liabilities and assets for the expected future tax consequences of events that have been recognized differently in the financial statements and tax returns. The components of Lexicon’s deferred tax assets (liabilities) at December 31, 2023 and 2022 are as follows:


	As of December 31,
	2023		2022
	(in thousands)
Deferred tax assets:
Net operating loss carryforwards	$	288,264	$	251,331
Research and development tax credits	30,002		29,290
Orphan drug credits	24,524		24,524
Capitalized research and development	37,357		33,813
Stock-based compensation	6,965		5,445

Interest	1,359		398
Other	3,308		2,255
Total deferred tax assets	391,779		347,056
Deferred tax liabilities:

Other	(1,608)		(1,295)
Total deferred tax liabilities	(1,608)		(1,295)
Less: valuation allowance	(390,171)		(345,761)
Net deferred tax liabilities	$	—	$	—

Net Operating Losses/Valuation Allowance. At December 31, 2023, Lexicon had both federal and state NOL carryforwards of approximately $1.3 billion and $169.6 million, respectively. The Company had $606.5 million of U.S. federal NOL carryforwards as of December 31, 2023, which can be carried forward indefinitely. The remaining federal and state NOL carryforwards will begin to expire in 2024.

The Company maintains a valuation allowance on net operating losses and other deferred tax assets. Accordingly, the Company has not reported any tax benefit relating to the remaining net operating loss carryforwards and income tax credit carryforwards that are available for utilization in future periods. On a periodic basis, the valuation allowance is reassessed on deferred income tax assets, weighing positive and negative evidence to assess the recoverability of the deferred tax assets. In 2023, the Company reassessed the valuation allowance and considered negative evidence, including the cumulative losses over the three years ended December 31, 2023 and positive evidence including the projections of future income. After assessing both the negative and the positive evidence, the Company concluded that it should continue to maintain the valuation allowance on net operating losses and other deferred tax assets as of December 31, 2023 given the significance of the weight of the negative evidence. Based on recent financial performance and future projections, the Company could record a reversal of all, or a portion of the valuation allowance associated with U.S. deferred tax assets in future periods. However, any such change is subject to actual performance and other considerations that may present positive or negative evidence at the time of the assessment. Significant judgment is required in making these assessments to maintain or reverse valuation allowances and, to the extent future expectations change the Company would have to assess the recoverability of these deferred tax assets at that time.

Based on the federal tax law limits and the Company’s cumulative loss position, the Company concluded it was appropriate to establish a full valuation allowance for its net deferred tax assets until an appropriate level of profitability is sustained. During the year ended December 31, 2023, the valuation allowance increased $44.4 million, primarily due to NOLs generated, increases in deferred tax assets associated with capitalized research and development expense and deferred tax assets for state jurisdictions.

Other. As of December 31, 2023 and 2022, the Company did not have any unrecognized tax benefits and had no accruals for interest or penalties related to income tax matters. Any interest and penalties related to uncertain tax positions will be reflected as a component of income tax expense. The Company is subject to U.S. federal and state income taxes. The tax years 2020 through 2022 remain open to examination by the Internal Revenue Service of the United Sates and the tax years 2019 through 2022 remain open to examination by various state tax authorities.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

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+ Details