Lexeo Therapeutics has entered into a securities purchase agreement with a select group of institutional and health care investors to issue and sell an aggregate of 20,790,120 shares of its common stock in a private placement, for gross proceeds of approximately $80 million.
The private placement was co-led by Frazier Life Sciences and Janus Henderson Investors with participation from new and existing investors, including Adar1 Capital Management, Affinity Healthcare Fund, Ally Bridge Group, Coastlands Capital, Surveyor Capital, Vestal Point Capital, and Woodline Partners.
The New York-based biotech is advancing a portfolio of AAV-based gene therapy candidates that take aim at the underlying genetic causes of conditions, including LX2006 for the treatment of Friedreich ataxia cardiomyopathy and LX2020 for the treatment of plakophilin-2 (PKP2) arrhythmogenic cardiomyopathy.
Last month, Lexeo identified approximately $20 million in capital to redeploy towards these two lead cardiac programs, which involved a 15% workforce reduction. The updated capital structure was expected to enable the company to maintain operational runway into 2027 and initiate a registrational study for LX2006 by early 2026.
Now, Lexeo says the new financing is expected to extend the company’s cash runway into 2028 and fund operations through a potential 2027 efficacy readout for LX2006 in Friedreich ataxia cardiomyopathy.
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