10 Best Multibagger Penny Stocks of 2025

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

Share Price as of August 29: $1.7

Average Upside Potential as of August 29: 190.7%

Number of Hedge Fund Holders: 12

Lexicon Pharmaceuticals, Inc. (NASDAQ:LXRX) is another biotech company on our list, based in The Woodlands, Texas. It develops and commercializes pharmaceutical products for treating heart failure, diabetes, and other medical complications.

The biggest catalyst for Lexicon Pharmaceuticals, Inc. (NASDAQ:LXRX) came in 2023, with the approval of its once-daily oral heart failure drug, Inpefa, by the FDA. Since the approval, the company has managed to rake in impressive sales. Lexicon Pharmaceuticals, Inc. (NASDAQ:LXRX) saw net sales of $1.6 million and $2.7 million for the first half of 2024. The company also reaffirmed its goal to achieve formulary access favorable for patients and equitable in light of Inpefa’s value, in its second-quarter earnings call.

Lexicon Pharmaceuticals, Inc. (NASDAQ:LXRX) is also expected to see further growth if its Phase 3 Sonata trial for HCM proves successful. Through this treatment, the company aims to release an effective treatment for hypertrophic cardiomyopathy, a disease that affects around a million patients in the US today, most of whom go undiagnosed. This represents an immense market for Lexicon Pharmaceuticals, Inc.’s (NASDAQ:LXRX) treatment and, thus, a huge opportunity for further growth and profitability.

A total of 12 hedge funds were long Lexicon Pharmaceuticals, Inc. (NASDAQ:LXRX) in the second quarter, with a total stake value of $48.3 million.