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.
PackGene is a CRO & CDMO technology company that specializes in packaging recombinant adeno-associated virus (rAAV) vectors. Since its establishment in 2014, PackGene has been a leader in the AAV vector CRO service field, providing tens of thousands of custom batches of AAV samples to customers in over 20 countries. PackGene offers a one-stop CMC solution for the early development, pre-clinical development, clinical trials, and drug approval of rAAV vector drugs for cell and gene therapy (CGT) companies that is fast, cost-effective, high-quality, and scalable. Additionally, the company provides compliant services for the GMP-scale production of AAVs and plasmids for pharmaceutical companies, utilizing five technology platforms, including the π-Alpha 293 cell AAV high-yield platform and the π-Omega plasmid high-yield platform. PackGene's mission is to make gene therapy affordable and accelerate the launch of innovative gene drugs. The company aims to simplify the challenging aspects of gene therapy development and industrialization processes and provide stable, efficient, and economical rAAV Fast Services to accelerate gene and cell therapy development efforts from discovery phase to commercialization.
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