Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, biotech company Lexicon Pharmaceuticals (Nasdaq: LXRX) has received a distressing two-star ranking.

With that in mind, let's take a closer look at Lexicon's business and see what CAPS investors are saying about the stock right now.

Lexicon facts

Headquarters (founded) The Woodlands, Texas (1995)
Market Cap $1.4 billion
Industry Biotechnology
Trailing-12-Month Revenue $1.6 million
Management Co-founder/CEO Arthur Sands
Co-founder/Chief Scientific Officer Brian Zambrowicz
Return on Equity (average, past 3 years) (41.8%)
Cash/Debt $253.2 million / $24.5 million
Competitors Athersys
Exelixis

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 20% of the 64 All-Star members who have rated Lexicon believe the stock will underperform the S&P 500 going forward.

Just yesterday, one of those Fools, zzlangerhans, touched on the stock's seemingly unsustainable valuation:

In late June Lexicon announced positive results from the phase IIb trial of glucose transporter inhibitor LX4211. I don't really have a complaint about the data. It looks good. But the study doesn't clearly establish where LX4211 might fit into diabetes management, a rapidly evolving field with numerous proprietary and generic therapies available. I think when Lexicon has a positive catalyst, investors sometimes forget about their enormous 480M share count and concurrent bloated market cap. When the share price hit [$3.20], the market cap approached [$1.5B]. That's quite a chunk of change for LX4211 and some other less inspiring pipeline candidates, and a hard level of interest to maintain in the years ahead before LX4211 can be commercialized.

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