Lexeo Therapeutics Secures $80 Million for Advancing Genetic Medicines for Cardiovascular Diseases

Lexeo Therapeutics, Inc., based in New York City, is charting a groundbreaking path in genetic medicine with a focus on cardiovascular diseases. Recently, the company announced a major financial milestone, securing a securities purchase agreement with key institutional and healthcare investors. This agreement involves issuing and selling a substantial number of shares of common stock and pre-funded warrants in a private placement, aiming to raise approximately $80 million. The private placement is anticipated to conclude by May 28, 2025, contingent upon certain customary conditions.

The transaction sees Lexeo Therapeutics offering 20,790,120 shares of its common stock or, alternatively, pre-funded warrants for 6,963,556 shares of common stock. Each share or warrant purchased in this deal is supplemented by another warrant to buy half a share of common stock. The pricing structure for these securities is set at $2.8825 per share and warrant, or $2.8824 for each pre-funded warrant and accompanying common warrant. The exercise price for pre-funded warrants is nominal at $0.0001 per share, while the common warrants come with an exercise price of $2.82 and are valid until May 28, 2029.

This substantial financing initiative is spearheaded by Frazier Life Sciences and Janus Henderson Investors, with contributions from both new and existing investors. The roster includes significant names such as Adar1 Capital Management, Affinity Healthcare Fund, LP, and Ally Bridge Group, among others. Lexeo's Chief Executive Officer, R. Nolan Townsend, expressed optimism about the financing, highlighting its potential to fortify the company’s leadership in cardiac genetic medicines. Townsend emphasized the role of their dedicated investors in propelling the company’s clinical stage pipeline forward, with the aim of pioneering transformative therapies for serious cardiovascular diseases.

The funds acquired through this private placement will be pivotal for Lexeo Therapeutics as it seeks to advance its clinical programs. These programs are concentrated on addressing genetic root causes of cardiovascular conditions, with notable projects like LX2006 targeting Friedreich ataxia cardiomyopathy and LX2020 addressing plakophilin-2 arrhythmogenic cardiomyopathy. The proceeds will support ongoing development, operational costs, and general corporate needs, effectively extending Lexeo’s financial runway into 2028.

To facilitate this transaction, J.P. Morgan and Oppenheimer & Co. played key roles as co-lead placement agents, with Baird also participating as a placement agent. The securities involved in the transaction are not registered under the Securities Act of 1933, nor under any state securities laws, thus restricting their sale within the United States barring proper registration or applicable exemptions.

In parallel with the securities purchase agreement, Lexeo and its investors have initiated a registration rights agreement. This agreement mandates Lexeo to file a registration statement with the U.S. Securities and Exchange Commission (SEC) to register the resale of the shares and warrants involved in the private placement. However, this press release does not represent an offer to sell or a solicitation to buy securities in any jurisdiction where such activities would be illegal.

Lexeo Therapeutics is committed to reshaping heart health through cutting-edge scientific research aimed at redefining treatment methodologies for cardiovascular diseases. The company continues to advance its portfolio of therapeutic candidates, targeting critical areas of high unmet medical need with genetic roots. With the newly acquired capital, Lexeo is strategically positioned to accelerate its innovative efforts in combating devastating cardiovascular conditions.