Access comprehensive financial analyses and make smarter investments - get the Manual of Investments on Amazon!

Lexicon Pharmaceuticals Raises $94.6M in Stock Offerings

Lexicon Pharmaceuticals, Inc. (NASDAQ: LXRX) has announced the pricing of its underwritten public offering of 32,000,000 shares of its common stock at a price of $1.30 per share. The gross proceeds from this offering are expected to be approximately $41.6 million.

In addition to the public offering, Lexicon has agreed to sell 22,400,000 shares of its common stock and 184,366 shares of series B convertible preferred stock in a concurrent private placement, generating expected aggregate gross proceeds of approximately $41.1 million and $11.9 million, respectively.

The company intends to use the net proceeds from these offerings to fund the continued research and development of its drug candidates, as well as for working capital and other general corporate purposes.

Jefferies and Piper Sandler are acting as joint book-running managers for the public offering, with H.C. Wainwright & Co. serving as the lead manager.

A shelf registration statement on Form S-3 relating to the public offering was filed with the U.S. Securities and Exchange Commission (SEC) on August 2, 2024, and declared effective on August 15, 2024. The shares of common stock proposed to be issued in the concurrent private placement have not been registered under the Securities Act of 1933.

Lexicon Pharmaceuticals is a biopharmaceutical company with a pipeline of drug candidates in discovery and clinical and preclinical development in various indications, including neuropathic pain, hypertrophic cardiomyopathy (HCM), obesity, and metabolism. The market has reacted to these announcements by moving the company's shares 7.03% to a price of $1.37. For more information, read the company's full 8-K submission here.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.

IN FOCUS