Lexicon Pharmaceuticals, Inc. (LXRX), a biopharmaceutical company, announced the pricing of a $41.6 million public offering and a private placement, together with total gross proceeds of approximately $94.6 million.
Lexicon intends to use the net proceeds to fund continued research and development of its drug candidates and for working capital and other general corporate purposes.
Following the news, LXRX is down 4.86% in the premarket at $1.37.
Lexicon has commenced a public offering of 32 million shares of its common stock, par value $0.001, priced at $1.30 per share. The gross proceeds from the public offering are expected to be $41.6 million.
The offering is expected to close on or about February 2, 2026.
In addition, Lexicon intends to grant the underwriters a 30-day option to purchase up to an additional 4.8 million shares of common stock.
Also, in a concurrent private placement, Lexicon has agreed to sell shares for aggregate gross proceeds of approximately $41.1 million to an affiliate of Invus, L.P.
The private placement offering is priced at $1.30 per share, with 22.40 million shares of its common stock and 0.18 million shares of its Series B convertible preferred stock, which will be converted into 9.22 million shares of common stock at $65.00 per share to the affiliate of Invus, L.P.
Pursuant to its pre-emptive right, the private placement purchaser will also have the option to purchase up to an additional 94,855 shares of Series B Convertible Preferred Stock, which will be convertible into 4.74 million shares of common stock, for $65.00 per share of series B convertible preferred stock, to the extent the underwriters exercise their option to purchase additional shares.
In addition to its purchases pursuant to its pre-emptive right, the private placement purchaser has also agreed to purchase an additional 182,779 shares of Series B Convertible stock, which will be convertible into 9.14 million shares of common stock, at a price of $65.00 per share of Series B Convertible Preferred Stock, for expected additional aggregate gross proceeds of approximately $11.9 million.
The closing of the underwritten public offering is not conditioned on the closing of the concurrent private placement.
Jefferies and Piper Sandler are acting as joint book-running managers for the proposed offering, and H.C. Wainwright & Co. is acting as lead manager for the public offering.
Lexicon's FDA-approved lead product, Sotagliflozin(INPEFA), is indicated for heart failure and is being evaluated for Hypertrophic Cardiomyopathy.
Lexicon's other drug candidates include Pilavapadin for Diabetic Peripheral Neuropathic Pain and Postherpetic Neuralgia and LX9851 for Obesity/Weight Management.
Lexicon's Sotagliflozin (INPEFA) is a once-daily oral tablet to reduce the risk of cardiovascular death, hospitalisation for heart failure, and urgent heart failure visits in adults with heart failure or type 2 diabetes mellitus, chronic kidney disease, and other cardiovascular risk factors.
For the 9 months ended September 30, 2025, Lexicon generated a total revenue of $44.31 million, up from $4.43 million in the year-ago period. This included $40.7 million in licensing revenue derived from the company's licensing agreement with Novo Nordisk and $3.6 million of revenues from US sales of INPEFA in the first nine months of 2025.
The net loss for the period shrank to $34.81 million, or $0.10 per share, from $166.64 million, or $0.54 per share.
Over the year, LXRX has traded between $0.28 and $1.83. The stock closed Thursday's trade at $1.44, down 4%.
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