0001062822-20-000067 | 10-Q | XBRL Viewer | Lexicon Pharmaceuticals INC

Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Sep. 30, 2020	Oct. 26, 2020
Cover [Abstract]
Document Type	10-Q
Document Fiscal Period Focus	Q3
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2020
Document Transition Report	false
Amendment Flag	false
Document Fiscal Year Focus	2020
Current Fiscal Year End Date	--12-31
Entity File Number	000-30111
Entity Registrant Name	Lexicon Pharmaceuticals, Inc.
Entity Central Index Key	0001062822
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	76-0474169
Entity Address, Address Line One	8800 Technology Forest Place
Entity Address, City or Town	The Woodlands
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	77381
City Area Code	281
Local Phone Number	863-3000
Title of 12(b) Security	Common Stock, par value $0.001
Trading Symbol	LXRX
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		117,474,808

Consolidated Balance Sheets-Unaudited - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Current assets:
Cash and cash equivalents	$ 52,251	$ 36,112
Short-term investments	59,195	235,547
Accounts receivable, net	1,383	56,532
Inventory	0	4,243
Prepaid expenses and other current assets	9,109	5,320
Total current assets	121,938	337,754
Property and equipment, net of accumulated depreciation and amortization of $63,795 and $61,741, respectively	11,106	14,047
Goodwill	44,543	44,543
Intangible assets, net	0	19,716
Other assets	1,341	1,655
Total assets	178,928	417,715
Current liabilities:
Accounts payable	11,734	12,178
Accrued liabilities	58,497	42,151
Current portion of long-term debt, net of deferred issuance costs	8,691	11,012
Total current liabilities	78,922	65,341
Long-term debt, net of deferred issuance costs	11,629	234,171
Other long-term liabilities	738	1,102
Total liabilities	91,289	300,614
Commitments and contingencies
Equity:
Preferred stock, $.01 par value; 5,000 shares authorized; no shares issued and outstanding	0	0
Common stock, $.001 par value; 225,000 shares authorized; 117,231 and 106,679 shares issued, respectively	117	106
Additional paid-in capital	1,486,853	1,462,172
Accumulated deficit	(1,394,523)	(1,341,444)
Accumulated other comprehensive loss	35	84
Treasury stock, at cost, 793 and 407 shares, respectively	(4,843)	(3,817)
Total stockholder's equity (deficit)	87,639	117,101
Total liabilities and equity	$ 178,928	$ 417,715

Consolidated Balance Sheets Parentheticals - USD ($) shares in Thousands, $ in Thousands	Sep. 30, 2020	Sep. 30, 2019
Consolidated Balance Sheets [Abstract]
Accumulated depreciation and amortization, property and equipment	$ 63,795	$ 61,741
Preferred stock, par value per share	$ 0.01	$ 0.01
Preferred stock, shares authorized	5,000	5,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value per share	$ 0.001	$ 0.001
Common stock, shares authorized	225,000	225,000
Common stock, shares issued	117,231	106,679
Treasury stock, shares	793	407

Consolidated Statements of Comprehensive Loss-Unaudited - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Revenues:
Net product revenue	$ 6,542	$ 8,351	$ 23,404	$ 23,763
Collaborative agreements	0	285,910	33	289,209
Royalties and other revenue	92	187	359	374
Total revenues	6,634	294,448	23,796	313,346
Operating expenses:
Cost of sales (including finite-lived intangible asset amortization)	633	577	1,929	2,457
Research and development, including stock-based compensation of $1,029 $1,698, $5,154 and $5,369, respectively	40,147	26,659	152,629	51,318
Selling, general and administrative expenses, included stock-based compensation of $875, $1,864, $5,440 and $5,370, respectively	11,997	13,898	40,798	42,271
Asset Impairment Charges	0	28,638	0	28,638
Total operating expenses	52,777	69,772	196,956	124,684
Gain on sale of non-financial assets	132,818	0	132,818	0
Loss from operations	86,675	224,676	(40,342)	188,662
Gain (Loss) on Extinguishment of Debt	(255)	0	(255)	0
Interest expense	(4,118)	(5,204)	(14,374)	(15,485)
Interest and other income, net	301	600	1,892	2,080
Net Income (Loss) before Taxes	82,603	220,072	(53,079)	175,257
Income Tax Benefit	0	6,014	0	6,014
Net income (loss)	$ 82,603	$ 226,086	$ (53,079)	$ 181,271
Net income (loss) per common share, Basic	$ 0.77	$ 2.13	$ (0.50)	$ 1.71
Net income (loss) per common share, diluted	$ 0.71	$ 1.95	$ (0.50)	$ 1.59
Shares used in computing net loss per common share, Basic	107,309	106,272	106,974	106,200
Unrealized gain on investments	$ (277)	$ (50)	$ (49)	$ 48
Comprehensive loss	82,326	226,036	(53,128)	181,319
Stock-based compensation expense associated with research and development expense	1,029	1,698	5,154	5,369
Stock-based compensation expense associated with selling, general and administrative expense	875	1,864	5,440	5,370
Impairment of Real Estate	$ 0	$ 0	$ 1,600	0
Proceeds from Sale of Productive Assets				$ 0

Consolidated Statements of Comprehensive Loss Parentheticals - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Consolidated Statements of Operations [Abstract]
Stock-based compensation expense associated with research and development expense	$ 1,029	$ 1,698	$ 5,154	$ 5,369
Stock-based compensation expense associated with selling, general and administrative expense	$ 875	$ 1,864	$ 5,440	$ 5,370

Consolidated Statements of Stockholders' Equity/Deficit-Unaudited - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Additional Paid-In Capital	Accumulated Deficit	Accumulated Other Comprehensive Gain (Loss)	Treasury Stock
Balance, shares at Dec. 31, 2018		106,162
Balance, value at Dec. 31, 2018	$ (26,405)	$ 106	$ 1,447,954	$ (1,471,577)	$ (12)	$ (2,876)
Stock-based compensation	3,411	$ 0	3,411	0	0	0
Issuance of common stock under Equity Incentive Plans, shares		517
Issuance of common stock under Equity Incentive Plans, value	0	$ 0	0	0	0	0
Repurchase of common stock	(941)	0	0	0	0	(941)
Net loss		0	0	(21,797)	0	0
Unrealized gain on investments	45	$ 0	0	0	45	0
Balance, shares at Mar. 31, 2019		106,679
Balance, value at Mar. 31, 2019	(45,687)	$ 106	1,451,365	(1,493,374)	33	(3,817)
Balance, shares at Dec. 31, 2018		106,162
Balance, value at Dec. 31, 2018	(26,405)	$ 106	1,447,954	(1,471,577)	(12)	(2,876)
Net loss	181,271
Unrealized gain on investments	$ 48
Balance, shares at Sep. 30, 2019	106,679	106,679
Balance, value at Sep. 30, 2019	$ 164,712	$ 106	1,458,693	(1,290,306)	36	(3,817)
Balance, shares at Mar. 31, 2019		106,679
Balance, value at Mar. 31, 2019	(45,687)	$ 106	1,451,365	(1,493,374)	33	(3,817)
Stock-based compensation	3,766	0	3,766	0	0	0
Net loss		0	0	(23,018)	0	0
Unrealized gain on investments	53	$ 0	0	0	53	0
Balance, shares at Jun. 30, 2019		106,679
Balance, value at Jun. 30, 2019	(64,886)	$ 106	1,455,131	(1,516,392)	86	(3,817)
Stock-based compensation	3,562	0	3,562	0	0	0
Net loss	226,086	0	0	226,086	0	0
Unrealized gain on investments	$ (50)	$ 0	0	0	(50)	0
Balance, shares at Sep. 30, 2019	106,679	106,679
Balance, value at Sep. 30, 2019	$ 164,712	$ 106	1,458,693	(1,290,306)	36	(3,817)
Balance, shares at Dec. 31, 2019		106,679
Balance, value at Dec. 31, 2019	117,101	$ 106	1,462,172	(1,341,444)	84	(3,817)
Stock-based compensation	4,432	$ 0	4,432	0	0	0
Issuance of common stock under Equity Incentive Plans, shares		1,032
Issuance of common stock under Equity Incentive Plans, value	2	$ 2	0	0	0	0
Repurchase of common stock	(923)	0	0	0	0	(923)
Net loss	(66,611)	0	0	(66,611)	0	0
Unrealized gain on investments	776	$ 0	0	0	776	0
Balance, shares at Mar. 31, 2020		107,711
Balance, value at Mar. 31, 2020	54,777	$ 108	1,466,604	(1,408,055)	860	(4,740)
Balance, shares at Dec. 31, 2019		106,679
Balance, value at Dec. 31, 2019	117,101	$ 106	1,462,172	(1,341,444)	84	(3,817)
Net loss	(53,079)
Unrealized gain on investments	$ (49)
Balance, shares at Sep. 30, 2020	117,231	117,231
Balance, value at Sep. 30, 2020	$ 87,639	$ 117	1,486,853	(1,394,523)	35	(4,843)
Balance, shares at Mar. 31, 2020		107,711
Balance, value at Mar. 31, 2020	54,777	$ 108	1,466,604	(1,408,055)	860	(4,740)
Stock-based compensation	$ 4,258	0	4,258	0	0	0
Issuance of common stock under Equity Incentive Plans, shares	187
Issuance of common stock under Equity Incentive Plans, value	$ 0	0	0	0	0	0
Repurchase of common stock	(103)	0	0	0	0	(103)
Net loss	(69,071)	0	0	(69,071)	0	0
Unrealized gain on investments	(548)	$ 0	0	0	(548)	0
Balance, shares at Jun. 30, 2020		107,898
Balance, value at Jun. 30, 2020	(10,687)	$ 108	1,470,862	(1,477,126)	312	(4,843)
Stock-based compensation	$ 1,904	0	1,904	0	0	0
Issuance of common stock under Equity Incentive Plans, shares	9,333
Issuance of common stock under Equity Incentive Plans, value	$ 14,096	9	14,087	0	0	0
Net loss	82,603	0	0	82,603	0	0
Unrealized gain on investments	$ (277)	$ 0	0	0	(277)	0
Balance, shares at Sep. 30, 2020	117,231	117,231
Balance, value at Sep. 30, 2020	$ 87,639	$ 117	$ 1,486,853	$ (1,394,523)	$ 35	$ (4,843)

- Definition

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

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- Definition

Amount of stockholders' equity (deficit), net of receivables from officers, directors, owners, and affiliates of the entity, attributable to both the parent and noncontrolling interests. Amount excludes temporary equity. Alternate caption for the concept is permanent equity.

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-Subparagraph (e)
-URI http://asc.fasb.org/extlink&oid=121322162&loc=SL121327923-165333

Reference 22: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 65
-Paragraph 8
-Subparagraph (d)(2)

Reference 23: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 65
-Paragraph 8
-Subparagraph (d)(3)

+ Details

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Cash flows from operating activities:
Net income (loss)	$ (53,079)	$ 181,271
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	2,590	2,719
Stock-based compensation	10,594	10,739
Amortization of debt issuance costs	995	1,087
Deferred Income Tax Expense (Benefit)	0	(6,014)
Gain on sale of non-financial assets	(132,818)	0
Asset Impairment Charges	0	28,638
Changes in operating assets and liabilities:
(Increase) decrease in accounts receivable	52,201	(50,917)
(Increase) decrease in inventory	345	204
(Increase) decrease in prepaid expenses and other current assets	(6,008)	(3,305)
Decrease in other assets	314	330
Decrease in accounts payable and other liabilities	14,281	(645)
Decrease in deferred revenue	0	(25,929)
Net cash provided by (used in) operating activities	(108,730)	138,178
Cash flows from investing activities:
Purchases of property and equipment	(33)	(70)
Proceeds from Sale of Productive Assets		0
Purchases of investments	(53,197)	(176,987)
Maturities of investments	229,500	130,600
Net cash (used in) provided by investing activities	336,655	(46,457)
Cash flows from financing activities:
Repurchase of common stock	(1,026)	(941)
Repayment of debt borrowings, net of fees	(210,760)	(963)
Net cash used in financing activities	(211,786)	(1,904)
Net increase (decrease) in cash and cash equivalents	16,139	89,817
Cash and cash equivalents at beginning of period	36,112	80,386
Cash and cash equivalents at end of period	52,251	170,203
Supplemental disclosure of cash flow information:
Cash paid for interest	16,892	13,243
Impairment of Real Estate	1,600	0
Gain (Loss) on Extinguishment of Debt	$ 255	$ 0

Summary of Significant Accounting Policies (Notes)

9 Months Ended

Sep. 30, 2020

Summary of Significant Accounting Policies [Abstract]

Significant Accounting Policies [Text Block]

Summary of Significant Accounting Policies

Basis of Presentation: The accompanying unaudited condensed consolidated financial statements of Lexicon Pharmaceuticals, Inc. (“Lexicon” or the “Company”) have been prepared in accordance with generally accepted accounting principles for interim financial information and pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements.

In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. Operating results for the nine-month period ended September 30, 2020 are not necessarily indicative of the results that may be expected for the year ended December 31, 2020.

The accompanying condensed consolidated financial statements include the accounts of Lexicon and its wholly-owned subsidiaries. Intercompany transactions and balances are eliminated in consolidation.

For further information, refer to the financial statements and footnotes thereto included in Lexicon’s annual report on Form 10-K for the year ended December 31, 2019, as filed with the SEC.

Use of Estimates: The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the period. Actual results could differ from those estimates.

Cash, Cash Equivalents and Short-Term Investments: Lexicon considers all highly-liquid investments with original maturities of three months or less to be cash equivalents. As of September 30, 2020, short-term investments consisted of U.S. treasury bills and corporate debt securities. As of December 31, 2019, short-term investments consisted of U.S. treasury bills. The Company’s short-term investments are classified as available-for-sale securities and are carried at fair value, based on quoted market prices of the securities. The Company views its available-for-sale securities as available for use in current operations regardless of the stated maturity date of the security. Unrealized gains and losses on such securities are reported as a separate component of stockholders’ equity. Net realized gains and losses, interest and dividends are included in interest income. The cost of securities sold is based on the specific identification method.

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.

Inventory: Inventory was comprised of supplies of XERMELO supporting the Company’s commercialization of the product in the United States. Inventories were determined at the lower of cost or market value, with cost determined under the specific identification method. As of December 31, 2019, inventory in the accompanying condensed consolidated balance sheet consisted of raw materials, work in process and finished goods in the amounts of $3.2 million, $0.2 million and $0.9 million, respectively. See Note 3, Asset Sale, for additional information relating to inventory.

Intangible Assets: Intangible assets, net consisted of in-process research and development acquired in business combinations, which are reported at fair value, less accumulated amortization. During 2017, intangible assets relating to XERMELO of $24.7 million were reclassified from indefinite-lived to finite-lived assets following the approval of XERMELO by the U.S. Food and Drug Administration (the “FDA”). Intangible assets with finite lives are amortized using the straight-line method over their estimated lives. As of December 31, 2019, the net carrying value of the finite-lived intangible assets was $19.7 million. During the three and nine months ended September 30, 2020, the remaining net carrying value of $18.5 million for the intangible assets relating to XERMELO was reduced to zero as a result of the Xermelo sale.

Accrued liabilities: Accrued liabilities consisted of the following:


	As of September 30,		As of December 31,
	2020		2019
	(in thousands)
Accrued research and development services	$	50,217	$	29,033
Accrued compensation and benefits	6,023		9,644
Short term lease liability	553		553
Other	1,704		2,921
Accrued liabilities	$	58,497	$	42,151

Revenue Recognition:

Product Revenues

Product revenues consisted of commercial sales of XERMELO in the United States and sales of bulk tablets of XERMELO to Ipsen Pharma SAS (“Ipsen”). Product revenues were recognized when the customer obtained control of XERMELO, which occurred upon delivery to the customer. The Company recognized product revenue net of applicable reserves for variable consideration, including allowances for customer credits, estimated rebates, chargebacks, discounts, returns, distribution service fees, and government rebates, such as Medicare Part D coverage gap reimbursements in the U.S. These estimates were based on the most likely amount method for relevant factors such as current contractual and statutory requirements, industry data and forecasted customer buying and payment patterns. The Company’s net product revenues reflected the Company’s best estimates of the amounts of consideration to which it was entitled based on the terms of the respective underlying contracts. Product shipping and handling costs were considered a fulfillment activity when control transferred to the Company’s customers and such costs were included in cost of sales.

Collaborative Agreements

Revenues under collaborative agreements include both license revenue and contract research revenue. 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 agreements: (i) identify the contract(s) with a customer; (ii) identify the performance obligation in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligation in the contract, and (v) 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, 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.

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 milestones are achieved. 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.

In 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 (i) when the related

sales occur or (ii) 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 the relevant agreement. Amounts are recorded as accounts receivable when the Company’s right to consideration is unconditional.

Cost of Sales: Cost of sales consisted of third-party manufacturing costs, freight and indirect overhead costs associated with sales of XERMELO. Product shipping and handling costs are included in cost of sales. Cost of sales also includes the amortization of the in-process research and development intangible asset for XERMELO using the straight-line method over the estimated useful life of 14 years. For the three and nine months ended September 30, 2020, cost of sales in the accompanying condensed consolidated statement of income (loss) includes amortization expense of $0.3 million and $1.2 million, respectively, and for the three and nine months ended September 30, 2019, includes $0.4 million and $1.3 million, respectively.

Research and Development Expenses: Research and development expenses consist of costs incurred for company-sponsored as well as collaborative research and development activities. These costs include direct and research-related overhead expenses and are expensed as incurred. Technology license fees for technologies that are utilized in research and development and have no alternative future use are expensed when incurred. Substantial portions of the Company’s preclinical and clinical trials are performed by third-party laboratories, medical centers, contract research organizations and other vendors. For preclinical studies, the Company accrues expenses based upon estimated percentage of work completed and the contract milestones remaining. For clinical studies, expenses are accrued based upon the number of patients enrolled and the duration of the study. The Company’s estimates of the clinical study costs and costs to transition activities from Sanofi for development of sotagliflozin for type 2 diabetes, heart failure and chronic kidney disease, including the costs to close out those studies, are based on actual costs incurred for activities completed subsequent to the transition date and estimates of the services to be received and efforts to be expended pursuant to contracts with multiple vendors and the contract research organization that has conducted and managed and is now closing out the clinical studies on its behalf. 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: The Company recognizes compensation expense in its condensed consolidated statements of comprehensive loss for share-based payments, including stock options and restricted stock units granted to employees, based on their fair values on the date of the grant, with the compensation expense recognized over the period in which an employee is required to provide service in exchange for the stock award. Stock-based compensation expense for awards without performance conditions is recognized on a straight-line basis. Stock-based compensation expense for awards with performance conditions is recognized over the period from the date the performance condition is determined to be probable of occurring through the time the applicable condition is met.

The fair value of stock options is estimated at the date of grant using the Black-Scholes method. The Black-Scholes option-pricing model requires the input of subjective assumptions. Because the Company’s employee stock options have characteristics significantly different from those of traded options, and because changes in the subjective input assumptions can materially affect the fair value estimate, in management’s opinion, the existing models do not necessarily provide a reliable single measure of the fair value of its employee stock options. For purposes of determining the fair value of stock options, the Company segregates its options into two homogeneous groups, based on exercise and post-vesting employment termination behaviors, resulting in a change in the assumptions used for expected option lives. Historical data is used to estimate the expected option life for each group. Expected volatility is based on the historical volatility in the Company’s stock price. The Company utilized the Black-Scholes valuation model for estimating the fair value of the stock option compensation granted, with the following weighted-average assumptions for stock options granted in the nine months ended September 30, 2020 and 2019:


	Expected Volatility		Risk-free Interest Rate		Expected Term	Dividend Rate
September 30, 2020:
Employees	91	%	1.3	%	4	—	%
Officers and non-employee directors	78	%	1.4	%	8	—	%
September 30, 2019:
Employees	88	%	2.2	%	4	—	%
Officers and non-employee directors	78	%	2.6	%	8	—	%

The following is a summary of stock option activity under Lexicon’s stock-based compensation plans for the nine months ended September 30, 2020:


	Options	Weighted Average Exercise Price
	(in thousands)
Outstanding at December 31, 2019	7,695	$	8.95
Granted	3,445	3.25

Expired	(236)	12.91
Forfeited (1)	(1,909)	5.71
Outstanding at September 30, 2020	8,995	7.35
Exercisable at September 30, 2020	5,108	$	9.63

(1) In connection with the reduction in force in September 2020, unvested stock options were forfeited or cancelled.

During the nine months ended September 30, 2020, Lexicon also granted its employees annual restricted stock units. Outstanding employee restricted stock units vest in three to four annual installments. The following is a summary of restricted stock units activity under Lexicon’s stock-based compensation plans for the nine months ended September 30, 2020:


	Shares	Weighted Average Grant Date Fair Value
	(in thousands)
Outstanding at December 31, 2019	2,830	$	6.35
Granted	3,144	3.27
Vested	(1,219)	6.56
Forfeited (1)	(1,892)	4.13
Outstanding at September 30, 2020	2,863	$	4.35

(1) In connection with the reduction in force in September 2020, unvested restricted stock units were forfeited or cancelled.

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 convertible debt, stock options and restricted stock units are not included because they are antidilutive.

Recent Accounting Pronouncements Level 1 (Notes)	9 Months Ended
Recent Accounting Pronouncements Level 1 (Notes)	Sep. 30, 2020
Recent Accounting Pronouncements [Abstract]
New Accounting Pronouncements, Policy	Recent Accounting PronouncementsIn November 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2018-18, Collaborative Arrangements (Topic 808): Clarifying the Interaction between Topic 808 and Topic 606. This targeted amendment to Topic 808 clarifies that certain transactions resulting from a collaborative agreement should be accounted for as revenue under Topic 606 when the collaborative arrangement participant is a customer for a good or service that is a distinct unit-of-account. This amendment is effective for fiscal years, and interim periods within years presented, beginning after December 15, 2019, and should be applied retrospectively to the date of initial application of Topic 606. The Company has applied the provisions of Topic 606 to account for its transactions for collaboration arrangements, including recognition, measurement, presentation and disclosure requirement, and adoption of this ASU did not have a material impact on the condensed consolidated financial statements.In January 2017, the FASB issued ASU No. 2017-04, Intangibles-Goodwill and Other, which is intended to simplify the subsequent measurement of goodwill. The pronouncement allows an entity, during its annual or interim goodwill impairment evaluation, to compare the fair value of a reporting unit with its carrying amount. An impairment charge is immediately recognized by which the carrying amount exceeds the fair value. This ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2019. The adoption of this ASU did not have a material impact on the condensed consolidated financial statements.

Asset Sale (Notes)	9 Months Ended
Asset Sale (Notes)	Sep. 30, 2020
Asset Retirement Obligation Disclosure [Abstract]
Sale of Non-Financial Assets	Asset Sale In September 2020, the Company completed the sale of its XERMELO® (telotristat ethyl) product and related assets (the “XERMELO sale”) to TerSera Therapeutics LLC (“TerSera”) pursuant to an Asset Purchase and Sale Agreement entered into in July 2020. The upfront consideration paid by TerSera, subject to a working capital adjustment as set forth in the Asset Purchase and Sale Agreement, was $160.4 million and the net gain recognized in connection with the XERMELO sale was $132.8 million. The gain is reflected on the condensed consolidated statement of comprehensive income (loss) for the three and nine months ended September 30, 2020. The Company remains eligible to receive development, regulatory and sales milestone payments of up to an aggregate of $65 million for the development and commercialization of telotristat ethyl in patients with biliary tract cancer and mid-teens royalty payments on net sales of XERMELO in biliary tract cancer. The Company has determined that these amounts are constrained until the achievement, if any, of specific events. If or when the constraint is determined to be resolved, the Company will re-evaluate the overall gain in connection with the XERMELO sale and recognize an adjustment on a cumulative catch-up basis in the period that the determination is made. The XERMELO sale did not meet the criteria for reporting discontinued operations as there was not a strategic shift that has (or will have) a major effect on the Company’s operations. For the three and nine months ended September 30, 2020, the pretax net loss on the condensed consolidated statement of comprehensive income (loss) for the Company’s XERMELO operations is $2.1 million and $12.1 million, respectively, and for the three and nine months ended September 30, 2019, the pretax net loss for the Company’s XERMELO operations is $4.1 million and $10.8 million, respectively. As a result of the XERMELO sale, the Company implemented a reduction in force which reduced its workforce by approximately fifty percent. The Company currently expects severance charges to approximate $5.7 million, of which $5.5 million was incurred through September 30, 2020. Of this charge, $2.5 million was recorded in research and development expense and $3.0 million was recorded in selling, general and administrative expense in the accompanying condensed consolidated statement of comprehensive income (loss) for the three and nine months ended September 30, 2020.

Cash and Cash Equivalents and Investments

9 Months Ended

Sep. 30, 2020

Cash and Cash Equivalents and Investments [Abstract]

Cash and Cash Equivalents Disclosure

Cash and Cash Equivalents and Investments

The fair value of cash and cash equivalents and investments held at September 30, 2020 and December 31, 2019 are as follows:


	As of September 30, 2020
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
	(in thousands)
Cash and cash equivalents	$	52,251	$	—	$	—	$	52,251
Securities maturing within one year:
U.S. treasury securities	38,796		40		—		38,836
Corporate debt securities	20,364		1		(6)		20,359
Total short-term investments	$	59,160	$	41	$	(6)	$	59,195
Total cash and cash equivalents and investments	$	111,411	$	41	$	(6)	$	111,446

	As of December 31, 2019
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
			(in thousands)
Cash and cash equivalents	$	36,112	$	—	$	—	$	36,112
Securities maturing within one year:
U.S. treasury securities	235,463		94		(10)		235,547

Total short-term investments	$	235,463	$	94	$	(10)	$	235,547
Total cash and cash equivalents and investments	$	271,575	$	94	$	(10)	$	271,659

There were no realized losses during either of the nine months ended September 30, 2020 and 2019, respectively. The cost of securities sold is based on the specific identification method.

Fair Value Measurements

9 Months Ended

Sep. 30, 2020

Fair Value Measurements [Abstract]

Fair Value, Measurement Inputs, Disclosure

Fair Value Measurements

The Company uses various inputs in determining the fair value of its investments and measures these assets on a recurring basis. Assets and liabilities recorded at fair value in the condensed consolidated balance sheets are categorized by the level of objectivity associated with the inputs used to measure their fair value. The following levels are directly related to the amount of subjectivity associated with the inputs to fair valuation of these assets and liabilities:

•Level 1 - quoted prices in active markets for identical investments, which include U.S. treasury securities

•Level 2 - other significant observable inputs (including quoted prices for similar investments, market corroborated inputs, etc.), which includes corporate debt securities

•Level 3 - significant unobservable inputs

The inputs or methodology used for valuing securities are not necessarily an indication of the credit risk associated with investing in those securities. The following table provides the fair value measurements of applicable Company assets that are measured at fair value on a recurring basis according to the fair value levels defined above as of September 30, 2020 and December 31, 2019.


	Assets and Liabilities at Fair Value as of September 30, 2020
	Level 1		Level 2		Level 3		Total
	(in thousands)
Assets
Cash and cash equivalents	$	52,251	$	—	$	—	$	52,251
Short-term investments	38,836		20,359		—		59,195
Total cash and cash equivalents and investments	$	91,087	$	20,359	$	—	$	111,446


	Assets and Liabilities at Fair Value as of December 31, 2019
	Level 1		Level 2		Level 3		Total
	(in thousands)
Assets
Cash and cash equivalents	$	36,112	$	—	$	—	$	36,112
Short-term investments	235,547		—		—		235,547
Total cash and cash equivalents and investments	$	271,659	$	—	$	—	$	271,659

The Company did not have any Level 3 assets or liabilities as of September 30, 2020 or December 31, 2019. Transfers between levels are recognized at the actual date of the circumstance that caused the transfer. There were no transfers between Level 1 and Level 2 during the periods presented.

The Company also has assets that under certain conditions are subject to measurement at fair value on a non-recurring basis. These assets include goodwill associated with the acquisitions of Coelacanth Corporation in 2001 and Symphony Icon, Inc. in 2010, and intangible assets associated with the acquisition of Symphony Icon, Inc. in 2010. For these assets, measurement at fair value in periods subsequent to their initial recognition is applicable if one or more is determined to be impaired.

Refer to Note 6, Debt Obligations, for fair value measurements of debt obligations.

Debt Obligations	9 Months Ended
Debt Obligations	Sep. 30, 2020
Debt Obligations [Abstract]
Debt Disclosure	Debt Obligations Convertible Debt. In November 2014, Lexicon completed an offering of $87.5 million in aggregate principal amount of its 5.25% Convertible Senior Notes due 2021 (the “Convertible Notes”). The conversion feature did not meet the criteria for bifurcation as required by generally accepted accounting principles and the entire principal amount was recorded as long-term debt on the Company’s condensed consolidated balance sheets. In September 2020, the Company entered into separate, privately negotiated exchange agreements to exchange $75.8 million aggregate principal amount of the Convertible Notes for consideration valued at 85% of the principle amount of the Convertible Notes. In September 2020, the Company issued 9,332,471 shares of the Company’s common stock and paid $44.0 million in cash, which included $1.1 million of accrued interest, to exchange $67.1 million aggregate principal amount of such Convertible Notes. The Company recorded the exchanges under the accounting requirements for debt extinguishment of convertible instruments. As a result, a debt extinguishment gain of $8.4 million was recorded and is included in the accompanying condensed consolidated statement of comprehensive income (loss) for the three and nine months ended September 30, 2020. As of September 30, 2020, the carrying value of the remaining Convertible Notes was $20.0 million. In October 2020, the Company issued 1,036,484 shares of the Company’s common stock and paid $6.0 million in cash, which included $0.2 million of accrued interest, to exchange an additional $8.8 million aggregate principal amount of such Convertible Notes. As of September 30, 2020, these notes are included in the current portion of long-term debt, net of deferred issuance costs in the accompanying condensed consolidated balance sheet. The remaining Convertible Notes are governed by an indenture (the “Indenture”), dated as of November 26, 2014, between the Company and Wells Fargo Bank, N.A., as trustee. The Convertible Notes bear interest at a rate of 5.25% per year, payable semiannually in arrears on June 1 and December 1 of each year, beginning on June 1, 2015. The Convertible Notes mature on December 1, 2021. The Company may not redeem the Convertible Notes prior to the maturity date, and no sinking fund is provided for the Convertible Notes. Holders of the Convertible Notes may convert their Convertible Notes at their option at any time prior to the close of business on the business day immediately preceding the maturity date. Upon conversion, the Company will deliver for each $1,000 principal amount of converted Convertible Notes a number of shares of its common stock equal to the conversion rate, as described in the Indenture. The conversion rate is initially 118.4553 shares of common stock per $1,000 principal amount of Convertible Notes (equivalent to an initial conversion price of $8.442 per share of common stock). The conversion rate is subject to adjustment in some events but will not be adjusted for any accrued and unpaid interest. In addition, following certain corporate events that occur prior to the maturity date, the Company will increase the conversion rate for a holder who elects to convert its Convertible Notes in connection with such a corporate event in certain circumstances. If the Company undergoes a fundamental change, holders may require the Company to repurchase for cash all or any portion of their Convertible Notes at a fundamental change repurchase price equal to 100% of the principal amount of the Convertible Notes to be repurchased, plus accrued and unpaid interest to, but excluding, the fundamental change repurchase date. In connection with the issuance of the Convertible Notes, the Company incurred $3.4 million of debt issuance costs. The debt issuance costs are amortized as interest expense over the expected life of the Convertible Notes using the effective interest method. The Company determined the expected life of the debt was equal to the seven-year term of the Convertible Notes. As of September 30, 2020, the balance of unamortized debt issuance costs was $0.13 million, which was adjusted in September 2020 upon execution of the exchange agreements and offsets long-term debt on the condensed consolidated balance sheets. The fair value of the remaining Convertible Notes was $15.4 million as of September 30, 2020 and was determined using Level 2 inputs based on the indicative pricing published by certain investment banks or trading levels of the Convertible Notes, which are not listed on any securities exchange or quoted on an inter-dealer automated quotation system. Mortgage Loan. In August 2018, a wholly owned subsidiary of Lexicon entered into a term loan and security agreement, refinancing the previously existing mortgage on its facilities in The Woodlands, Texas (the “Property”). The loan agreement provided for a $12.9 million mortgage on the Property and had a two-year term with a 10-year amortization. The mortgage loan bore interest at a rate per annum equal to the greater of (a) the 30-day LIBOR rate plus 5.5% and (b) 7.5% and provided for a balloon payment of $10.3 million, which was paid in full in August 2020. At December 31, 2019, the condensed consolidated balance sheet includes mortgage debt, the carrying value of the debt, of $11.0 million and is included in current portion of long-term debt. The fair value of the loan agreement approximated its carrying value. The fair value of the loan agreement was determined using Level 2 inputs using discounted cash flow analysis, based on the Company’s estimated current incremental borrowing rate. BioPharma Term Loan. In December 2017, Lexicon entered into a loan agreement with BioPharma under which $150.0 million was funded in December 2017 (the “BioPharma Term Loan”). The BioPharma Term Loan was scheduled to mature in December 2022, bore interest at 9% per year, subject to additional interest if an event of default occurred and was continuing, and was payable quarterly. The BioPharma Term Loan was subject to mandatory prepayment provisions that required prepayment upon a change of control or receipt of proceeds from certain non-ordinary course transfers of assets. The Company repaid the BioPharma Term Loan in whole, together with required prepayment and make-whole premiums, upon closing of the XERMELO sale in September 2020. The Company recorded the repayment under the accounting requirements for debt extinguishment and as a result, a loss of $8.6 million was recognized and is included in the accompanying condensed consolidated statement of comprehensive income (loss) for the three and nine months ended September 30, 2020. The Company’s obligations under the BioPharma Term Loan were secured by a first lien security interest in substantially all of the assets of the Company and certain of its subsidiaries, other than its facilities in The Woodlands, Texas. The loan agreement contained certain customary representations and warranties, affirmative and negative covenants and events of default applicable to the Company and certain of its subsidiaries, including among other things, covenants restricting dispositions, fundamental changes in the business, mergers or acquisitions, indebtedness, encumbrances, distributions, investments, transactions with affiliates and subordinated debt. If an event of default occurred and was continuing, all amounts outstanding under the BioPharma Term Loan may have been declared immediately due and payable. In connection with the BioPharma Term Loan, the Company incurred $4.1 million of debt issuance costs. The debt issuance costs were being amortized as interest expense over the expected life of the BioPharma Term Loan using the effective interest method. The Company determined the expected life of the debt was equal to the five-year term of the BioPharma Term Loan. The remaining balance of the debt issuance costs were written off and included as part of the debt extinguishment loss. At December 31, 2019, the fair value of the BioPharma Term Loan approximated its carrying value. The fair value of the BioPharma Term Loan was determined using Level 2 inputs using discounted cash flow analysis, based on the Company’s estimated current incremental borrowing rate.

Commitments and Contingencies	9 Months Ended
Commitments and Contingencies	Sep. 30, 2020
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies Disclosure	Commitments and Contingencies Legal Proceedings. On January 28, 2019, a purported securities class action complaint captioned Daniel Manopla v. Lexicon Pharmaceuticals, Inc., Lonnel Coats, Jeffrey L. Wade and Pablo Lapuerta, M.D. was filed against the Company and certain of its officers in the U.S. District Court for the Southern District of Texas, Houston Division. The Company’s motion to dismiss was granted and the action was dismissed with prejudice by the District Court on August 14, 2020. The lead plaintiffs filed a notice of appeal to the U.S. Court of Appeals for the Fifth Circuit on September 11, 2020. The lawsuit purports to be a class action brought on behalf of purchasers of the Company’s securities during the period from March 11, 2016 through July 29, 2019. The complaint alleges that the defendants violated federal securities laws by making materially false and misleading statements and/or omissions concerning data from its Phase 3 clinical trials of sotagliflozin in type 1 diabetes patients and the prospects of FDA approval of sotagliflozin for the treatment of type 1 diabetes. The complaint purports to assert claims for violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. The complaint seeks, on behalf of the purported class, an unspecified amount of monetary damages, interest, fees and expenses of attorneys and experts, and other relief. Sanofi Arbitration. On October 16, 2020, the Company initiated arbitration proceedings against Sanofi-Aventis Deutschland GmbH (“Sanofi”) seeking to recover damages for breach of contract relating to the Termination and Settlement Agreement and Mutual Releases with Sanofi, dated September 9, 2019 (the “Termination Agreement”). In September 2020, Sanofi withheld approximately $23.2 million from the final $26 million payment due to the Company under the Termination Agreement, offsetting certain third party costs and internal costs incurred by Sanofi and asserted by Sanofi to be payable by the Company under the terms of the Termination Agreement. The Company disputes that at least a significant portion of such costs are properly reimbursable by the Company under the terms of the Termination Agreement and asserts that, in any event, Sanofi was not permitted to withhold any of such costs under the terms of the Termination Agreement. The Company is seeking payment of up to $23.2 million in such disputed costs, together with late interest and attorneys’ fees and costs. In addition, 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.

Collaboration and License Agreements	9 Months Ended
Collaboration and License Agreements	Sep. 30, 2020
Collaboration and License Agreements [Abstract]
Collaborative Arrangement Disclosure	Collaboration and License Agreements Lexicon has derived substantially all of its revenues from drug discovery and development alliances, target validation collaborations for the development and, in some cases, analysis of the physiological effects of genes altered in knockout mice, product sales, government grants and contracts, technology licenses, subscriptions to its databases and compound library sales. Ipsen. In October 2014, Lexicon entered into a License and Collaboration Agreement, which was subsequently amended in March 2015 (collectively, the “Ipsen Agreement”), with Ipsen for the development and commercialization of XERMELO outside of the United States and Japan (the “Licensed Territory”). The Ipsen Agreement was assigned to TerSera in September 2020 in connection with the XERMELO sale. Under the Ipsen Agreement, Lexicon granted Ipsen an exclusive, royalty-bearing right and license under its patent rights and know-how to commercialize XERMELO in the Licensed Territory. Ipsen was responsible for using diligent efforts to commercialize XERMELO in the Licensed Territory pursuant to a mutually approved commercialization plan. Subject to certain exceptions, Lexicon was responsible for conducting clinical trials required to obtain regulatory approval for XERMELO for carcinoid syndrome in the European Union, including those contemplated by a mutually approved initial development plan, and had the first right to conduct most other clinical trials of XERMELO. Lexicon was responsible for the costs of all clinical trials contemplated by the initial development plan. The costs of additional clinical trials were to be allocated between the parties based on the nature of such clinical trials. Under the Ipsen Agreement, Ipsen paid Lexicon an aggregate of $47.2 million through September 30, 2020, consisting of $24.5 million in upfront payments and a $6.4 million milestone payment upon the acceptance of the filing submitted by Ipsen to the European Medicines Agency for XERMELO as an adjunct to somatostatin analog therapy for the long-term treatment of carcinoid syndrome, a $5.1 million milestone upon Ipsen’s receipt of approval from the European Commission for the marketing of XERMELO in all member states of the European Union, Norway and Iceland, a $3.8 million milestone upon Ipsen’s first commercial sale in Germany, a $3.8 million milestone upon Ipsen’s first commercial sale in the United Kingdom, a $1.3 million milestone upon Ipsen’s receipt of approval from Health Canada and a $2.3 million milestone upon Ipsen’s first commercial sale in Canada. In addition, Lexicon was eligible to receive from Ipsen (a) up to an aggregate of approximately $9.6 million upon the achievement of specified regulatory and commercial launch milestones and (b) up to an aggregate of €72 million upon the achievement of specified sales milestones. Milestone payments that were contingent upon the achievement of a substantive milestone were deemed constrained. Lexicon was also entitled to tiered, escalating royalties ranging from low twenties to mid-thirties percentages of net sales of XERMELO in the Licensed Territory, subject to a credit for amounts previously paid to Lexicon by Ipsen for the manufacture and supply of such units of XERMELO. Lexicon and Ipsen had entered into a commercial supply agreement pursuant to which Lexicon supplied Ipsen’s commercial requirements of XERMELO, and Ipsen paid an agreed upon transfer price for such commercial supply. The Company considered the following as its performance obligations with respect to the revenue recognition of the $24.5 million upfront payments: •The exclusive license granted to Ipsen to develop and commercialize XERMELO in the Licensed Territory; •The development services Lexicon was performing for XERMELO; •The obligation to participate in committees which governed the development of XERMELO until commercialization; and •The obligation to supply commercial supply of XERMELO under a commercial supply agreement. The Company determined that the license had stand-alone value because it was an exclusive license that gave Ipsen the right to develop and commercialize XERMELO or to sublicense its rights. In addition, at the time of the agreement, it would have been possible for Ipsen or another third party to conduct clinical trials without assistance from Lexicon. As a result, the Company considered the license and the development services under the Ipsen Agreement to be separate performance obligations. The Company recognized the portion of the transaction price allocated to the license immediately because Lexicon delivered the license and earned the revenue at the inception of the arrangement. The Company recognized as revenue the amount allocated to the development services and the obligation to participate in committees over the period of time Lexicon performed the services, which was completed in 2018. The Company determined that the commercial supply agreement was a contingent deliverable at its onset. There was inherent uncertainty in obtaining regulatory approval at the time of entry into the commercial supply agreement, thus making the applicability of the commercial supply agreement outside the control of Lexicon and Ipsen. As a result, the Company determined the commercial supply agreement did not meet the definition of a performance obligation that needed to be accounted for at the inception of the arrangement. The Company also determined that there was no significant and incremental discount related to the commercial supply agreement that should have been accounted for at the inception of the arrangement. The Company determined that the initial transaction price was the $24.5 million in upfront payments because they were the only payments that were fixed and determinable at the inception of the arrangement. There was considerable uncertainty at the date of the agreement as to whether Lexicon would earn milestone payments, royalty payments or payments for finished drug product. As such, the Company did not include those payments in the transaction price. The Company allocated the transaction price based on the relative best estimate of selling price of each performance obligation. The Company estimated the selling price of the license deliverable by applying a probability-based income approach utilizing an appropriate discount rate. The significant inputs the Company used to determine the projected income of the license included: estimated future product sales, estimated cost of goods sold, estimated operating expenses, income taxes, and an appropriate discount rate. The Company estimated the selling price of the development services by using internal estimates of the cost to hire third parties to perform the services over the expected period to perform the development. The Company estimated the selling price of the obligation to participate in committees by using internal estimates of the number of internal hours and salary and benefits costs to perform these services. As a result of the allocation, the Company recognized $21.2 million of the $24.5 million in upfront payments for the license in 2014, and an additional $1.4 million in 2015 upon entering into the amendment. The Company recognized the $1.7 million allocated to the development services performance obligation over the period of performance as development occurred, and recognized the $0.1 million allocated to the committee participation performance obligation ratably over the period of performance. Milestone payments that were contingent upon the achievement of a substantive milestone were deemed constrained. If or when the constraint was determined to be resolved, the Company would re-evaluate the overall transaction price and recognize an adjustment on a cumulative catch-up basis in the period that the adjustment was evaluated. Revenue recognized under the Ipsen Agreement was $0.3 million and $3.5 million for the nine months ended September 30, 2020 and 2019, respectively. Royalty revenue of $0.3 million was recognized for each of the nine months ended September 30, 2020 and 2019, respectively. Sanofi. In November 2015, Lexicon entered into a Collaboration and License Agreement, which was subsequently amended in July 2017 (collectively, the “Sanofi Agreement”), with Sanofi for the worldwide development of Lexicon’s diabetes drug candidate sotagliflozin. In December 2016, Sanofi terminated its rights under the Sanofi Agreement with respect to Japan. Effective as of September 9, 2019 (the “Settlement Date”), Lexicon entered into the Termination Agreement with Sanofi, pursuant to which the Sanofi Agreement was terminated and certain associated disputes between Lexicon and Sanofi were settled. Under the terms of the Termination Agreement, Lexicon regained all rights to sotagliflozin and assumed full responsibility for the worldwide development and commercialization of sotagliflozin in all indications. Sanofi paid Lexicon $208 million in September 2019 and $26 million in each of March and September 2020 (less amounts withheld by Sanofi offsetting certain third party costs and internal costs incurred by Sanofi and asserted by Sanofi to be payable by Lexicon under the terms of the Termination Agreement), and neither party will owe any additional payments pursuant to the Sanofi Agreement. The parties have cooperated in the transition of responsibility for ongoing clinical studies and other activities, and each party is responsible for its own expenses associated with such transition, subject to certain exceptions. See Note 7, Commitments and Contingencies, for additional information. In March 2020, Lexicon announced its plan to close out the clinical studies related to the Phase 3 development program for sotagliflozin in type 2 diabetes, heart failure and chronic kidney disease. Revenue relating to the Termination Agreement was recognized in the third quarter of 2019. Revenue recognized under the Sanofi Agreement was $286.0 million for the nine months ended September 30, 2019.

Impairment Loss on Buildings	9 Months Ended
Impairment Loss on Buildings	Sep. 30, 2020
Text Block [Abstract]
Asset Impairment Charges	Impairment Loss on Buildings In October 2020, Lex-Gen Woodlands, L.P. entered into a real estate purchase and sale agreement under which the Company agreed to sell its facilities in The Woodlands, Texas for a purchase price of $11.9 million. The sale agreement is subject to normal and customary closing conditions, including a study period, which extends until November 20, 2020, during which the purchaser may conduct inspections, analyses and other studies of the property and may terminate the agreement at its discretion. The property did not meet the criteria for classification as held for sale at September 30, 2020. Due to the negotiations to sell the property in 2020, the Company evaluated for impairment and recognized an impairment charge of $1.6 million in the second quarter of 2020 in order to reduce the carrying value of the property to its estimated fair value, less estimated selling costs.

Earnings Per Share

9 Months Ended

Sep. 30, 2020

Earnings Per Share [Abstract]

Earnings Per Share

Earnings (Loss) Per ShareThe following is a summary of Lexicon’s earnings (loss) per share calculations and reconciliations of basic to diluted earnings (loss) per share.


(in thousands, except per share data)	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Numerator:
Net income (loss)	$	82,603	$	226,086	$	(53,079)	$	181,271
Add interest on Convertible Notes	1,258		1,277		—		3,790
Adjusted net income (loss)	$	83,861	$	227,363	$	(53,079)	$	185,061

Denominator:
Shares used in computing net income (loss) per common share, basic	107,309		106,272		106,974		106,200
Add effect of potential dilutive securities:
Share based compensation awards	51		3		—		177
Convertible Notes	10,192		10,365		—		10,365
Shares used in computing net income (loss) per common share, diluted	117,552		116,640		106,974		116,742

Net income (loss) per share - basic	$	0.77	$	2.13	$	(0.50)	$	1.71
Net income (loss) per share - diluted	$	0.71	$	1.95	$	(0.50)	$	1.59

For periods presented with a net loss, the weighted average number of shares outstanding are the same for both basic and diluted net loss per common share. The average number of shares associated with stock options and restricted stock units that were excluded from diluted earnings per share that would potentially dilute earnings per share in the future was 11,773 and 10,576, respectively, for the three months ended September 30, 2020 and 2019, and 11,859 and 8,452, respectively, for the nine months ended September 30, 2020 and 2019. For periods presented with a net loss, the shares associated with the Convertible Notes are not included in the computation of diluted earnings per share because they are antidilutive.

Summary of Significant Accounting Policies (Policies)	9 Months Ended
Summary of Significant Accounting Policies (Policies)	Sep. 30, 2020
Summary of Significant Accounting Policies [Abstract]
Consolidation, Policy [Policy Text Block]	The accompanying condensed consolidated financial statements include the accounts of Lexicon and its wholly-owned subsidiaries. Intercompany transactions and balances are eliminated in consolidation.
Use of Estimates, Policy [Policy Text Block]	Use of Estimates: The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the period. Actual results could differ from those estimates.
Cash and Cash Equivalents, Policy [Policy Text Block]	Cash, Cash Equivalents and Short-Term Investments: Lexicon considers all highly-liquid investments with original maturities of three months or less to be cash equivalents. As of September 30, 2020, short-term investments consisted of U.S. treasury bills and corporate debt securities. As of December 31, 2019, short-term investments consisted of U.S. treasury bills. The Company’s short-term investments are classified as available-for-sale securities and are carried at fair value, based on quoted market prices of the securities. The Company views its available-for-sale securities as available for use in current operations regardless of the stated maturity date of the security. Unrealized gains and losses on such securities are reported as a separate component of stockholders’ equity. Net realized gains and losses, interest and dividends are included in interest income. The cost of securities sold is based on the specific identification method.
Accounts Receivable [Policy Text Block]	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.
Inventory, Policy [Policy Text Block]	Inventory: Inventory was comprised of supplies of XERMELO supporting the Company’s commercialization of the product in the United States. Inventories were determined at the lower of cost or market value, with cost determined under the specific identification method. As of December 31, 2019, inventory in the accompanying condensed consolidated balance sheet consisted of raw materials, work in process and finished goods in the amounts of $3.2 million, $0.2 million and $0.9 million, respectively.
Revenue [Policy Text Block]	Revenue Recognition: Product Revenues Product revenues consisted of commercial sales of XERMELO in the United States and sales of bulk tablets of XERMELO to Ipsen Pharma SAS (“Ipsen”). Product revenues were recognized when the customer obtained control of XERMELO, which occurred upon delivery to the customer. The Company recognized product revenue net of applicable reserves for variable consideration, including allowances for customer credits, estimated rebates, chargebacks, discounts, returns, distribution service fees, and government rebates, such as Medicare Part D coverage gap reimbursements in the U.S. These estimates were based on the most likely amount method for relevant factors such as current contractual and statutory requirements, industry data and forecasted customer buying and payment patterns. The Company’s net product revenues reflected the Company’s best estimates of the amounts of consideration to which it was entitled based on the terms of the respective underlying contracts. Product shipping and handling costs were considered a fulfillment activity when control transferred to the Company’s customers and such costs were included in cost of sales. Collaborative Agreements Revenues under collaborative agreements include both license revenue and contract research revenue. 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 agreements: (i) identify the contract(s) with a customer; (ii) identify the performance obligation in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligation in the contract, and (v) 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, 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. 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 milestones are achieved. 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. In 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 (i) when the related sales occur or (ii) 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 the relevant agreement. Amounts are recorded as accounts receivable when the Company’s right to consideration is unconditional.
Cost of Goods and Service [Policy Text Block]	Cost of Sales: Cost of sales consisted of third-party manufacturing costs, freight and indirect overhead costs associated with sales of XERMELO. Product shipping and handling costs are included in cost of sales. Cost of sales also includes the amortization of the in-process research and development intangible asset for XERMELO using the straight-line method over the estimated useful life of 14 years. For the three and nine months ended September 30, 2020, cost of sales in the accompanying condensed consolidated statement of income (loss) includes amortization expense of $0.3 million and $1.2 million, respectively, and for the three and nine months ended September 30, 2019, includes $0.4 million and $1.3 million, respectively.
Research and Development Expense, Policy [Policy Text Block]	Research and Development Expenses: Research and development expenses consist of costs incurred for company-sponsored as well as collaborative research and development activities. These costs include direct and research-related overhead expenses and are expensed as incurred. Technology license fees for technologies that are utilized in research and development and have no alternative future use are expensed when incurred. Substantial portions of the Company’s preclinical and clinical trials are performed by third-party laboratories, medical centers, contract research organizations and other vendors. For preclinical studies, the Company accrues expenses based upon estimated percentage of work completed and the contract milestones remaining. For clinical studies, expenses are accrued based upon the number of patients enrolled and the duration of the study. The Company’s estimates of the clinical study costs and costs to transition activities from Sanofi for development of sotagliflozin for type 2 diabetes, heart failure and chronic kidney disease, including the costs to close out those studies, are based on actual costs incurred for activities completed subsequent to the transition date and estimates of the services to be received and efforts to be expended pursuant to contracts with multiple vendors and the contract research organization that has conducted and managed and is now closing out the clinical studies on its behalf. 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.
Share-based Payment Arrangement [Policy Text Block]	Stock-Based Compensation: The Company recognizes compensation expense in its condensed consolidated statements of comprehensive loss for share-based payments, including stock options and restricted stock units granted to employees, based on their fair values on the date of the grant, with the compensation expense recognized over the period in which an employee is required to provide service in exchange for the stock award. Stock-based compensation expense for awards without performance conditions is recognized on a straight-line basis. Stock-based compensation expense for awards with performance conditions is recognized over the period from the date the performance condition is determined to be probable of occurring through the time the applicable condition is met. The fair value of stock options is estimated at the date of grant using the Black-Scholes method. The Black-Scholes option-pricing model requires the input of subjective assumptions. Because the Company’s employee stock options have characteristics significantly different from those of traded options, and because changes in the subjective input assumptions can materially affect the fair value estimate, in management’s opinion, the existing models do not necessarily provide a reliable single measure of the fair value of its employee stock options. For purposes of determining the fair value of stock options, the Company segregates its options into two homogeneous groups, based on exercise and post-vesting employment termination behaviors, resulting in a change in the assumptions used for expected option lives. Historical data is used to estimate the expected option life for each group. Expected volatility is based on the historical volatility in the Company’s stock price.
Earnings Per Share, Policy [Policy Text Block]	Net Loss per Common Share: Net loss per common share is computed using the weighted average number of shares of common stock outstanding. Shares associated with convertible debt, stock options and restricted stock units are not included because they are antidilutive.

Summary of Significant Accounting Policies Equity Incentive Awards (Tables)

3 Months Ended

9 Months Ended

Sep. 30, 2020

Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Abstract]

Schedule of Accrued Liabilities

Accrued liabilities: Accrued liabilities consisted of the following:


	As of September 30,		As of December 31,
	2020		2019
	(in thousands)
Accrued research and development services	$	50,217	$	29,033
Accrued compensation and benefits	6,023		9,644
Short term lease liability	553		553
Other	1,704		2,921
Accrued liabilities	$	58,497	$	42,151

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


	Expected Volatility		Risk-free Interest Rate		Expected Term	Dividend Rate
September 30, 2020:
Employees	91	%	1.3	%	4	—	%
Officers and non-employee directors	78	%	1.4	%	8	—	%
September 30, 2019:
Employees	88	%	2.2	%	4	—	%
Officers and non-employee directors	78	%	2.6	%	8	—	%

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


	Options	Weighted Average Exercise Price
	(in thousands)
Outstanding at December 31, 2019	7,695	$	8.95
Granted	3,445	3.25

Expired	(236)	12.91
Forfeited (1)	(1,909)	5.71
Outstanding at September 30, 2020	8,995	7.35
Exercisable at September 30, 2020	5,108	$	9.63

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


	Shares	Weighted Average Grant Date Fair Value
	(in thousands)
Outstanding at December 31, 2019	2,830	$	6.35
Granted	3,144	3.27
Vested	(1,219)	6.56
Forfeited (1)	(1,892)	4.13
Outstanding at September 30, 2020	2,863	$	4.35

Cash and Cash Equivalents and Investments (Tables)

9 Months Ended

Sep. 30, 2020

Cash and Cash Equivalents and Investments [Abstract]

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


	As of September 30, 2020
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
	(in thousands)
Cash and cash equivalents	$	52,251	$	—	$	—	$	52,251
Securities maturing within one year:
U.S. treasury securities	38,796		40		—		38,836
Corporate debt securities	20,364		1		(6)		20,359
Total short-term investments	$	59,160	$	41	$	(6)	$	59,195
Total cash and cash equivalents and investments	$	111,411	$	41	$	(6)	$	111,446

	As of December 31, 2019
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
			(in thousands)
Cash and cash equivalents	$	36,112	$	—	$	—	$	36,112
Securities maturing within one year:
U.S. treasury securities	235,463		94		(10)		235,547

Total short-term investments	$	235,463	$	94	$	(10)	$	235,547
Total cash and cash equivalents and investments	$	271,575	$	94	$	(10)	$	271,659

Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2020

Fair Value Measurements [Abstract]

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


	Assets and Liabilities at Fair Value as of September 30, 2020
	Level 1		Level 2		Level 3		Total
	(in thousands)
Assets
Cash and cash equivalents	$	52,251	$	—	$	—	$	52,251
Short-term investments	38,836		20,359		—		59,195
Total cash and cash equivalents and investments	$	91,087	$	20,359	$	—	$	111,446


	Assets and Liabilities at Fair Value as of December 31, 2019
	Level 1		Level 2		Level 3		Total
	(in thousands)
Assets
Cash and cash equivalents	$	36,112	$	—	$	—	$	36,112
Short-term investments	235,547		—		—		235,547
Total cash and cash equivalents and investments	$	271,659	$	—	$	—	$	271,659

Earnings Per Share (Tables)

9 Months Ended

Sep. 30, 2020

Earnings Per Share [Abstract]

Schedule of Earnings Per Share, Basic and Diluted

The following is a summary of Lexicon’s earnings (loss) per share calculations and reconciliations of basic to diluted earnings (loss) per share.


(in thousands, except per share data)	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Numerator:
Net income (loss)	$	82,603	$	226,086	$	(53,079)	$	181,271
Add interest on Convertible Notes	1,258		1,277		—		3,790
Adjusted net income (loss)	$	83,861	$	227,363	$	(53,079)	$	185,061

Denominator:
Shares used in computing net income (loss) per common share, basic	107,309		106,272		106,974		106,200
Add effect of potential dilutive securities:
Share based compensation awards	51		3		—		177
Convertible Notes	10,192		10,365		—		10,365
Shares used in computing net income (loss) per common share, diluted	117,552		116,640		106,974		116,742

Net income (loss) per share - basic	$	0.77	$	2.13	$	(0.50)	$	1.71
Net income (loss) per share - diluted	$	0.71	$	1.95	$	(0.50)	$	1.59

Summary of Significant Accounting Policies Inventory (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Inventory [Line Items]
Inventory, Raw Materials, Gross					$ 3,200,000
Inventory, Finished Goods, Gross					900,000
Inventory, Work in Process, Gross					$ 200,000
Amortization of Intangible Assets	$ 300,000	$ 400,000	$ 1,200,000	$ 1,300,000

Summary of Significant Accounting Policies Stock-based Compensation Valuation (Details) - Equity Option [Member]	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, ExpectedVolatilityRate, Employees	91.00%	88.00%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate, Employee	1.30%	2.20%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term, Employees	4 years	4 years
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate, Employees	0.00%	0.00%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate, Officers and Non-employee Directors	78.00%	78.00%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate, Officers and Non-employee Directors	1.40%	2.60%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term, Officers and Non-employee Directors	8 years	8 years
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate, Officers and Non-employee Directors	0.00%	0.00%

Summary of Significant Accounting Policies Stock-based Compensation Summary (Details 1) - $ / shares shares in Thousands	9 Months Ended
	Sep. 30, 2020	Dec. 31, 2019
Share-based Payment Arrangement, Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number	8,995	7,695
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price	$ 7.35	$ 8.95
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures	3,445
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price	$ 3.25
Share-based Compensation Arrangement by Share-based Payment Award, Options, Expirations in Period	236
Share-based Compensation Arrangements by Share-based Payment Award, Options, Expirations in Period, Weighted Average Exercise Price	$ 12.91
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period	1,909
Share-based Compensation Arrangements by Share-based Payment Award, Options, Forfeitures in Period, Weighted Average Exercise Price	$ 5.71
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number	5,108
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price	$ 9.63
Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number	2,863	2,830
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value	$ 4.35	$ 6.35
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period	3,144
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value	$ 3.27
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period	1,219
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value	$ 6.56
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period	1,892
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value	$ 4.13

Summary of Significant Accounting Policies Accrued Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Accrued Liabilities [Line Items]
Accrued research and development services current	$ 50,217	$ 29,033
Accrued compensation and benefits current	6,023	9,644
Operating Lease, Liability, Current	553	553
Other Accrued Liabilities, Current	1,704	2,921
Accrued Liabilities	$ 58,497	$ 42,151

Summary of Significant Accounting Policies Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended			9 Months Ended
	Sep. 30, 2020	Jun. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019	Mar. 31, 2017
Accounting Policies [Abstract]
Intangible Assets, Net (Excluding Goodwill)	$ 0			$ 0		$ 19,716	$ 24,700
Asset Impairment Charges	0	$ 1,600	$ 28,638	0	$ 28,638
Intangible Assets, Net (Including Goodwill)	$ 18,500			$ 18,500

Asset Sale (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended		9 Months Ended		12 Months Ended
Asset Sale (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2020
Asset Retirement Obligation Disclosure [Abstract]
Gain on sale of non-financial assets	$ 132,800	$ 132,818	$ 0	$ 132,818	$ 0
Proceeds from Sale of Productive Assets	$ 160,385				0
TerSera Maximum Development, Regulatory and Commercial Milestones				65,000
Xermelo Pretax Net Loss		(2,100)	(4,100)	(12,100)	(10,800)
Severance Costs				5,500
Debt Instrument [Line Items]
Gain (Loss) on Extinguishment of Debt		$ (255)	$ 0	(255)	$ 0
Severance Costs				5,500
R&D severance costs [Member]
Asset Retirement Obligation Disclosure [Abstract]
Severance Costs				2,500
Debt Instrument [Line Items]
Severance Costs				2,500
SG&A severance costs [Member]
Asset Retirement Obligation Disclosure [Abstract]
Severance Costs				3,000
Debt Instrument [Line Items]
Severance Costs				3,000
Forecast [Member]
Asset Retirement Obligation Disclosure [Abstract]
Severance Costs						$ 5,700
Debt Instrument [Line Items]
Severance Costs						$ 5,700
BioPharma [Member]
Debt Instrument [Line Items]
Gain (Loss) on Extinguishment of Debt				$ 8,600

Cash and Cash Equivalents and Investments (Details 1) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019	Sep. 30, 2019
Cash and Cash Equivalents
Fair Value
Amortized Cost	$ 52,251	$ 36,112
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	0
Estimated Fair Value	52,251	36,112
U.S. Treasury Securities
Fair Value
Amortized Cost	38,796	235,463
Gross Unrealized Gains	40	94
Gross Unrealized Losses	0	(10)
Estimated Fair Value	38,836	235,547
Total Short-term Investments
Fair Value
Amortized Cost	59,160	235,463
Gross Unrealized Gains	41	94
Gross Unrealized Losses	(6)	(10)
Estimated Fair Value	59,195	235,547
Total Cash and Cash Equivalents and Investments
Fair Value
Amortized Cost	111,411	271,575
Gross Unrealized Gains	41	94
Gross Unrealized Losses	(6)	(10)
Estimated Fair Value	111,446	$ 271,659
Corporate Debt Securities
Fair Value
Amortized Cost	20,364
Gross Unrealized Gains			$ 1
Gross Unrealized Losses	6
Estimated Fair Value	$ 20,359

Cash and Cash Equivalents and Investments (Details 2) - USD ($)	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Schedule of Investments [Line Items]
Realized Investment Gains (Losses)	$ 0	$ 0

Fair Value Measurements (Details 1) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Fair Value
Cash and Cash Equivalents	$ 52,251	$ 36,112
Short-term Investments	59,195	235,547
Total Cash and Cash Equivalents and Investments	111,446	271,659
Fair Value, Level 1
Fair Value
Cash and Cash Equivalents	52,251	36,112
Short-term Investments	38,836	235,547
Total Cash and Cash Equivalents and Investments	91,087	271,659
Fair Value, Level 2
Fair Value
Cash and Cash Equivalents	0	0
Short-term Investments	20,359	0
Total Cash and Cash Equivalents and Investments	20,359	0
Fair Value, Level 3
Fair Value
Cash and Cash Equivalents	0	0
Short-term Investments	0	0
Total Cash and Cash Equivalents and Investments	$ 0	$ 0

Debt Obligations (Details) $ / shares in Units, $ in Thousands	1 Months Ended
	Nov. 30, 2014 USD ($)	Oct. 01, 2020 USD ($) shares	Sep. 30, 2020 USD ($) shares	Sep. 28, 2020 USD ($) shares	Sep. 30, 2019 shares	Aug. 30, 2018 USD ($)	Dec. 18, 2017 USD ($)	Nov. 20, 2014 $ / shares
Debt Instrument [Line Items]
Debt Issuance Costs, Gross							$ 4,100
Proceeds from Convertible Debt	$ 87,500
Conv Debt Instrument Interest Rate Stated Percentage								5.25%
Debt Instrument, Convertible, Conversion Ratio	118.4553
Debt Instrument, Convertible, Conversion Price \| $ / shares								$ 8.442
Debt Issuance Cost	$ 3,400
Unamortized Debt Issuance Expense			$ 130
Debt Instrument, Fair Value Disclosure			15,400
Mortgage Debt Instrument_Revere_LXRX			$ 11,000			$ 12,900
Mortgage Debt Interest Rate_Base_Revere_LXRX						5.50%
Mortgage Debt Interest Rate BasePlus_Revere_LXRX						7.50%
Mortgage Debt Balloon Payment_LXRX						$ 10,300
Debt Instrument, Interest Rate, Stated Percentage			9.00%
Debt Instrument, Face Amount							$ 150,000
Common stock, shares issued \| shares			117,231,000		106,679,000
Convertible debt exchange			$ 8,400
accrued interest on convertible				$ 1,100
Convertible debt exchange Remaining Notes			$ 20,000
Convertible debt exchange - Total Principal Amount				75,800
Convertible debt exchange - September principal amount				(67,100)
Convertible debt exchange- September cash portion				$ 44,000
Convertible debt exchange - September share payment \| shares				9,332,471
Subsequent Event [Member]
Debt Instrument [Line Items]
accrued interest on convertible		$ 200
Future Convertible debt exchange shares \| shares		1,036,484
future convertible debt exchange		$ 6,000
principal amount of convertible notes		$ (8,800)

Commitments and Contingencies (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2020	Sep. 30, 2019
Commitments and Contingencies Disclosure [Abstract]
Sanofi termination cash payment	$ 208,000	$ 26,000	$ 208,000
Other Commitments [Line Items]
Sanofi termination cash payment	$ 208,000	26,000	$ 208,000
Accounts Receivable [Member]
Commitments and Contingencies Disclosure [Abstract]
Sanofi termination cash payment		23,200
Other Commitments [Line Items]
Sanofi termination cash payment		$ 23,200

Collaboration and License Agreements (Details) $ in Thousands, € in Millions	1 Months Ended						3 Months Ended				9 Months Ended		12 Months Ended
	Feb. 28, 2019 USD ($)	Nov. 30, 2017 USD ($)	Oct. 31, 2017 USD ($)	Mar. 31, 2015 USD ($)	Oct. 31, 2014 USD ($)	Oct. 31, 2014 EUR (€)	Sep. 30, 2020 USD ($)	Dec. 31, 2019 USD ($)	Mar. 31, 2018 USD ($)	Mar. 31, 2017 USD ($)	Sep. 30, 2020 USD ($)	Sep. 30, 2019 USD ($)	Dec. 31, 2016 USD ($)	Dec. 31, 2015 USD ($)
Collaboration and License Agreements [Abstract]
Sanofi termination cash payment							$ 208,000				$ 26,000	$ 208,000
Sanofi Revenue Recognized											286,000	286,000
Ipsen Total Payments							47,200				47,200
Ipsen Maximum Regulatory And Commercial Milestones											9,600
Ipsen Maximum Sales Milestones \| €						€ 72
Ipsen Total Upfront Payments				$ 24,500
Ipsen Milestone Payment										$ 6,400
Ipsen Milestone Payment Received	$ 2,300	$ 3,800	$ 3,800					$ 1,300	$ 5,100
Ipsen Revenue Allocated to License Deliverable													$ 1,400	$ 21,200
Ipsen Revenue Allocated to Development Deliverable					$ 1,700
Ipsen Revenue Allocated to Committee Deliverable					$ 100
Ipsen Revenue Recognized											300	$ 3,500
lxrx_sanofi initial cash payment							$ 26,000				26,000
Ipsen Royalty Income_LXRX											$ 300

Impairment Loss on Buildings (Details) $ in Thousands	Sep. 30, 2020 USD ($)
Text Block [Abstract]
asset sale price	$ 11,900

Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended				9 Months Ended
	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Earnings Per Share [Abstract]
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements	51			3	0	177
Incremental Common Shares Attributable to Dilutive Effect of Conversion of Debt Securities	10,192			10,365	0	10,365
Weighted Average Number of Shares Outstanding, Diluted	117,552			116,640	106,974	116,742
Net income (loss) per common share, Basic	$ 0.77			$ 2.13	$ (0.50)	$ 1.71
Earnings Per Share, Diluted	$ 0.71			$ 1.95	$ (0.50)	$ 1.59
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	11,773			10,576	11,859	8,452
Net Income (Loss) Attributable to Parent	$ 82,603	$ (69,071)	$ (66,611)	$ 226,086	$ (53,079)	$ 181,271
Dilutive Securities, Effect on Basic Earnings Per Share, Dilutive Convertible Securities	1,258			1,277	0	3,790
Undistributed Earnings (Loss) Allocated to Participating Securities, Diluted	$ 83,861			$ 227,363	$ (53,079)	$ 185,061
Shares used in computing net loss per common share, Basic	107,309			106,272	106,974	106,200

Label	Element	Value
Liabilities assumed by TerSera	lxrx_LiabilitiesAssumedByTerSera	$ 3,180,000