Lexeo Therapeutics, a gene therapy startup, is gearing up for an initial public offering (IPO) aiming to raise $113 million in capital. The company, which focuses on cardiac and Alzheimer’s disease gene therapies, plans to go public on Nasdaq under the symbol “LXEO.” With only $35 million in hand as of September, Lexeo is looking to tap into the public markets before the holiday season.

Lexeo’s IPO pitch includes 9 million shares priced between $13 and $15 each. If the offering prices at the midpoint, the biotech anticipates net proceeds of $112.9 million, which could increase to approximately $130.5 million if underwriters exercise their option to purchase an additional 1.35 million shares. This funding will provide Lexeo with financial runway until the second quarter of 2026.

Founded in January 2021 with $85 million in initial funding and 18 gene therapy programs from Professor Ronald Crystal of Weill Cornell Medicine, Lexeo initially planned to advance a gene therapy for CLN2 Batten disease into registrational studies in 2022 but is now seeking a partner for that asset (LX1004).

In a challenging IPO landscape with limited offerings in 2023, Lexeo’s decision to go public aligns with the trend of having drug candidates in clinical development. Lexeo is optimistic about its prospects, with plans to release interim data on three different gene therapies in the coming year.

A significant portion of the IPO proceeds, around $45 million, will be allocated to LX2006, a gene therapy for Friedreich’s ataxia cardiomyopathy. This therapy has received rare pediatric disease and orphan drug designations from the FDA.

Another $40 million will be invested in LX2020, a gene therapy for arrhythmogenic cardiomyopathy with PKP2 mutations. Lexeo intends to initiate a Phase I/II trial in the first half of the next year.

In the Alzheimer’s disease arena, Lexeo plans to allocate approximately $10 million to its Phase I/II-stage LX1001, targeting APOE4 homozygous patients. Enrollment is expected to conclude before the New Year, with interim data from all cohorts expected in the second half of the following year.

The remaining $15 million from the IPO proceeds will be directed towards other gene therapies and cardiac discovery efforts.

Lexeo’s board chairman, Steven Altschuler, previously chaired gene therapy pioneer Spark Therapeutics until its acquisition by Roche in 2019.

Notable shareholders in Lexeo include D1 Capital Partners, PBM Capital, Janus Henderson Investors, Longitude Venture Partners, Lundbeckfond Invest, Eventide Healthcare, Omega Funds, and co-founder Ronald Crystal, each owning more than 5% of the company’s stock.

About PackGene

PackGene Biotech is a world-leading CRO and CDMO, excelling in AAV vectors, mRNA, plasmid DNA, and lentiviral vector solutions. Our comprehensive offerings span from vector design and construction to AAV, lentivirus, and mRNA services. With a sharp focus on early-stage drug discovery, preclinical development, and cell and gene therapy trials, we deliver cost-effective, dependable, and scalable production solutions. Leveraging our groundbreaking π-alpha 293 AAV high-yield platform, we amplify AAV production by up to 10-fold, yielding up to 1e+17vg per batch to meet diverse commercial and clinical project needs. Moreover, our tailored mRNA and LNP products and services cater to every stage of drug and vaccine development, from research to GMP production, providing a seamless, end-to-end solution.

Related News

Related Services