Lexicon Pharmaceuticals Closes 32 Million Share Public Offering
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1d ago
0mins
Should l Buy LXRX?
Source: Newsfilter
- Public Offering Size: Lexicon Pharmaceuticals successfully closed a public offering of 32 million shares of common stock at a price of $1.30 per share, reflecting the company's strong capital market presence and investor confidence.
- Preferred Stock Placement: The concurrent private placement included 22.4 million shares of common stock and 367,145 shares of Series B Convertible Preferred Stock priced at $65 per share, further strengthening the company's capital structure.
- Additional Purchase Options: The underwriters were granted a 30-day option to purchase an additional 4.8 million shares of common stock, providing Lexicon with potential additional funding to support research and operations.
- Planned Use of Proceeds: Lexicon intends to utilize the net proceeds from the offerings for drug research and development as well as general corporate purposes, indicating the company's commitment to future product development and strategic positioning.
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Analyst Views on LXRX
Wall Street analysts forecast LXRX stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for LXRX is 3.97 USD with a low forecast of 1.90 USD and a high forecast of 6.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
3 Analyst Rating
3 Buy
0 Hold
0 Sell
Strong Buy
Current: 1.180
Low
1.90
Averages
3.97
High
6.00
Current: 1.180
Low
1.90
Averages
3.97
High
6.00
About LXRX
Lexicon Pharmaceuticals, Inc. is a biopharmaceutical company focusing on the research and development of pilavapadin, LX9851 and sotagliflozin and the commercialization of INPEFA. It is developing pilavapadin (LX9211), an orally delivered small molecule drug candidate, as a treatment for neuropathic pain. It has completed three Phase II clinical trials evaluating the safety and tolerability of pilavapadin and its effects on diabetic peripheral neuropathic pain (DPNP) and neuropathic pain. It is developing LX9851, an orally delivered small molecule drug candidate, as a treatment for obesity and associated cardiometabolic disorders and is conducting preclinical development of LX9851 in preparation for filing an investigational new drug application. It is commercializing INPEFA (sotagliflozin), an orally delivered small molecule drug, in the United States to reduce the risk of cardiovascular death, and urgent heart failure visits in adults with heart failure or type 2 diabetes mellitus.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Lexicon Pharmaceuticals Closes 32 Million Share Public Offering
- Public Offering Size: Lexicon Pharmaceuticals successfully closed a public offering of 32 million shares of common stock at a price of $1.30 per share, reflecting the company's strong capital market presence and investor confidence.
- Preferred Stock Placement: The concurrent private placement included 22.4 million shares of common stock and 367,145 shares of Series B Convertible Preferred Stock priced at $65 per share, further strengthening the company's capital structure.
- Additional Purchase Options: The underwriters were granted a 30-day option to purchase an additional 4.8 million shares of common stock, providing Lexicon with potential additional funding to support research and operations.
- Planned Use of Proceeds: Lexicon intends to utilize the net proceeds from the offerings for drug research and development as well as general corporate purposes, indicating the company's commitment to future product development and strategic positioning.
See More
Lexicon Pharmaceuticals Prices Public Offering at $1.30 per Share
- Public Offering Pricing: Lexicon Pharmaceuticals has priced its public offering at $1.30 per share for 32 million shares, aiming to raise $41.6 million, which reflects the company's proactive financing strategy to support its R&D initiatives.
- Additional Share Option: The firm has granted underwriters a 30-day option to purchase up to 4.8 million additional shares at the public offering price, providing flexibility that could enhance fundraising capabilities and support future business expansion.
- Concurrent Private Placement: Alongside the public offering, Lexicon plans to raise approximately $41.1 million through a private placement, selling 22.4 million common shares and 184,366 shares of convertible preferred stock, indicating a strategic approach to diversify its funding sources.
- Clear Use of Proceeds: Lexicon intends to utilize the net proceeds for the continued research and development of its drug candidates and for general corporate purposes, demonstrating the company's confidence in future growth and its ongoing commitment to investment in the biopharmaceutical sector.
See More
Lexicon Pharmaceuticals Prices Public Offering at $1.30 per Share
- Public Offering Size: Lexicon Pharmaceuticals has priced its public offering at $1.30 per share for 32 million shares, expecting gross proceeds of $41.6 million, which will significantly bolster funding for its research and development initiatives.
- Concurrent Private Placement: The company is also set to sell 22.4 million shares of common stock and 184,366 shares of Series B Convertible Preferred Stock in a concurrent private placement, anticipated to generate approximately $41.1 million, thereby enhancing its capital structure.
- Strategic Use of Proceeds: Lexicon intends to utilize the net proceeds from both the public offering and private placement for drug development and general corporate purposes, indicating a strong commitment to future product development and responsiveness to market demands.
- Underwriter Participation: With Jefferies and Piper Sandler acting as joint book-running managers for the public offering, this involvement reflects market confidence in Lexicon while providing the company with essential capital market expertise.
See More
Lexicon Pharmaceuticals Launches Underwritten Public Offering
- Public Offering Initiation: Lexicon Pharmaceuticals (LXRX) has commenced an underwritten public offering, planning to grant underwriters a 30-day option to purchase additional shares to potentially increase funding based on market demand.
- Private Placement Strategy: Concurrently, the company plans a private placement of common stock to its largest stockholder, Invus, L.P., leveraging its preemptive rights to ensure liquidity during the public offering period.
- Clear Use of Proceeds: The proceeds from the offering are intended to fund ongoing R&D, working capital, and general corporate purposes, indicating the company's focus on future growth and strategic planning.
- Negative Market Reaction: LXRX shares fell 2.8% in after-hours trading, reflecting a cautious market sentiment regarding the offering, which may impact investor confidence.
See More
Lexicon Pharmaceuticals Launches Underwritten Public Offering
- Public Offering Initiation: Lexicon Pharmaceuticals has announced the commencement of an underwritten public offering to sell common stock, aiming to strengthen its capital base for research and development despite uncertain market conditions.
- Underwriter Selection: Jefferies and Piper Sandler have been appointed as joint book-running managers for the offering, indicating the company's credibility and professional backing in the capital markets.
- Private Placement Plan: Concurrently, Lexicon intends to conduct a private placement to its largest shareholder, Invus, L.P., post-offering, ensuring stability in its capital structure and shareholder interests.
- Clear Use of Proceeds: The net proceeds from the offering are earmarked for drug development and general corporate purposes, reflecting Lexicon's commitment to enhancing its future product pipeline and competitive positioning in the market.
See More
Lexicon Pharmaceuticals (LXRX) Advances Pilavapadin to Phase 3 Following Positive FDA Meeting
- FDA Meeting Outcome: Lexicon Pharmaceuticals' meeting with the FDA did not oppose advancing its experimental drug pilavapadin to Phase 3, marking a significant milestone in the treatment of diabetic peripheral neuropathic pain.
- Clinical Trial Design: The company plans to conduct two 12-week placebo-controlled registrational studies to evaluate the effects of a 10 mg daily dose, with the change in average daily pain score over 12 weeks as the primary endpoint, indicating clear clinical objectives.
- Smooth Development Path: CEO Mike Exton noted that the FDA has not required additional preclinical or clinical studies, which could have delayed or complicated pilavapadin's late-stage development and regulatory submission process.
- Optimistic Market Outlook: While advancing pilavapadin, Lexicon plans to submit a New Drug Application in 2026 and actively expand global partnerships, showcasing strong market potential and growth opportunities.
See More
Lexicon Pharmaceuticals Closes 32 Million Share Public Offering
- Public Offering Size: Lexicon Pharmaceuticals successfully closed a public offering of 32 million shares of common stock at a price of $1.30 per share, reflecting the company's strong capital market presence and investor confidence.
- Preferred Stock Placement: The concurrent private placement included 22.4 million shares of common stock and 367,145 shares of Series B Convertible Preferred Stock priced at $65 per share, further strengthening the company's capital structure.
- Additional Purchase Options: The underwriters were granted a 30-day option to purchase an additional 4.8 million shares of common stock, providing Lexicon with potential additional funding to support research and operations.
- Planned Use of Proceeds: Lexicon intends to utilize the net proceeds from the offerings for drug research and development as well as general corporate purposes, indicating the company's commitment to future product development and strategic positioning.
See More
Lexicon Pharmaceuticals Prices Public Offering at $1.30 per Share
- Public Offering Pricing: Lexicon Pharmaceuticals has priced its public offering at $1.30 per share for 32 million shares, aiming to raise $41.6 million, which reflects the company's proactive financing strategy to support its R&D initiatives.
- Additional Share Option: The firm has granted underwriters a 30-day option to purchase up to 4.8 million additional shares at the public offering price, providing flexibility that could enhance fundraising capabilities and support future business expansion.
- Concurrent Private Placement: Alongside the public offering, Lexicon plans to raise approximately $41.1 million through a private placement, selling 22.4 million common shares and 184,366 shares of convertible preferred stock, indicating a strategic approach to diversify its funding sources.
- Clear Use of Proceeds: Lexicon intends to utilize the net proceeds for the continued research and development of its drug candidates and for general corporate purposes, demonstrating the company's confidence in future growth and its ongoing commitment to investment in the biopharmaceutical sector.
See More
Lexicon Pharmaceuticals Prices Public Offering at $1.30 per Share
- Public Offering Size: Lexicon Pharmaceuticals has priced its public offering at $1.30 per share for 32 million shares, expecting gross proceeds of $41.6 million, which will significantly bolster funding for its research and development initiatives.
- Concurrent Private Placement: The company is also set to sell 22.4 million shares of common stock and 184,366 shares of Series B Convertible Preferred Stock in a concurrent private placement, anticipated to generate approximately $41.1 million, thereby enhancing its capital structure.
- Strategic Use of Proceeds: Lexicon intends to utilize the net proceeds from both the public offering and private placement for drug development and general corporate purposes, indicating a strong commitment to future product development and responsiveness to market demands.
- Underwriter Participation: With Jefferies and Piper Sandler acting as joint book-running managers for the public offering, this involvement reflects market confidence in Lexicon while providing the company with essential capital market expertise.
See More
Lexicon Pharmaceuticals Launches Underwritten Public Offering
- Public Offering Initiation: Lexicon Pharmaceuticals (LXRX) has commenced an underwritten public offering, planning to grant underwriters a 30-day option to purchase additional shares to potentially increase funding based on market demand.
- Private Placement Strategy: Concurrently, the company plans a private placement of common stock to its largest stockholder, Invus, L.P., leveraging its preemptive rights to ensure liquidity during the public offering period.
- Clear Use of Proceeds: The proceeds from the offering are intended to fund ongoing R&D, working capital, and general corporate purposes, indicating the company's focus on future growth and strategic planning.
- Negative Market Reaction: LXRX shares fell 2.8% in after-hours trading, reflecting a cautious market sentiment regarding the offering, which may impact investor confidence.
See More
Lexicon Pharmaceuticals Launches Underwritten Public Offering
- Public Offering Initiation: Lexicon Pharmaceuticals has announced the commencement of an underwritten public offering to sell common stock, aiming to strengthen its capital base for research and development despite uncertain market conditions.
- Underwriter Selection: Jefferies and Piper Sandler have been appointed as joint book-running managers for the offering, indicating the company's credibility and professional backing in the capital markets.
- Private Placement Plan: Concurrently, Lexicon intends to conduct a private placement to its largest shareholder, Invus, L.P., post-offering, ensuring stability in its capital structure and shareholder interests.
- Clear Use of Proceeds: The net proceeds from the offering are earmarked for drug development and general corporate purposes, reflecting Lexicon's commitment to enhancing its future product pipeline and competitive positioning in the market.
See More
Lexicon Pharmaceuticals (LXRX) Advances Pilavapadin to Phase 3 Following Positive FDA Meeting
- FDA Meeting Outcome: Lexicon Pharmaceuticals' meeting with the FDA did not oppose advancing its experimental drug pilavapadin to Phase 3, marking a significant milestone in the treatment of diabetic peripheral neuropathic pain.
- Clinical Trial Design: The company plans to conduct two 12-week placebo-controlled registrational studies to evaluate the effects of a 10 mg daily dose, with the change in average daily pain score over 12 weeks as the primary endpoint, indicating clear clinical objectives.
- Smooth Development Path: CEO Mike Exton noted that the FDA has not required additional preclinical or clinical studies, which could have delayed or complicated pilavapadin's late-stage development and regulatory submission process.
- Optimistic Market Outlook: While advancing pilavapadin, Lexicon plans to submit a New Drug Application in 2026 and actively expand global partnerships, showcasing strong market potential and growth opportunities.
See More
