5 Best Biotech Penny Stocks to Buy in 2026

4. ​Lexicon Pharmaceuticals Inc. (NASDAQ:LXRX)

Number of Hedge Fund Holders: 20

​Lexicon Pharmaceuticals Inc. (NASDAQ:LXRX) is one of the best biotech penny stocks to buy in 2026. On March 23, Lexicon Pharmaceuticals and Novo Nordisk (NYSE:NVO) initiated a Phase 1 clinical study for LX9851, a first-in-class, oral non-incretin small molecule inhibitor targeting obesity and metabolic disorders. Discovered by Lexicon and now under exclusive worldwide development by Novo Nordisk, the drug works by inhibiting Acyl CoA Synthetase 5 (ACSL5), a key regulator of fat accumulation and energy balance.

The Phase 1 trial will evaluate the safety and pharmacokinetics of LX9851 in 96 participants and is expected to conclude in the first quarter of 2027. The initiation of this study triggered a $10 million milestone payment to Lexicon, marking the second of three near-term payments under their 2025 agreement.

Lexicon remains eligible for a third $10 million payment later this year and could receive up to $1 billion in total upfront and milestone payments, plus tiered royalties on future net sales. Lexicon CEO Mike Exton noted that the partnership uses Novo Nordisk’s scale to advance what could become a highly differentiated approach to weight management.

​Lexicon Pharmaceuticals Inc. (NASDAQ:LXRX) is a biopharmaceutical company focused on the discovery, development, and commercialization of pharmaceutical products to treat human disease.