Lexicon Pharma tumbles on equity offering, private placement with top shareholder

Lexicon Pharmaceuticals

30/01/2026 13:45

** Shares of Lexicon Pharmaceuticals LXRX.O down 15% before the bell to $1.21 after follow-on priced

    ** Texas-based biopharma firm early Fri announced 32 mln shares in public offering at $1.30 for gross proceeds of $41.6 mln

    ** Offering price represents about 10% discount to stock's last close

    ** Co also to sell in private placement 22.4 mln shares at $1.30 and 184,366 shares of convertible preferred stock at $65 for gross proceeds of $
    41.1 mln to an affiliate of Invus, LP, its largest stockholder

    ** In addition, pursuant to its preemptive right, Invus to buy 182,779 shares of convertible preferred stock at $65 for gross proceeds of $11.9 mln

    ** Co to use net offering proceeds from the transactions to fund continued R&D of its drug candidates and for working capital and other general purposes

    ** Jefferies and Piper Sandler joint book
    runners for public offering

    ** Co has ~363.5 mln shares outstanding as of Jan 26, per the prospectus

    ** LXRX shares on Jan 21 jumped 19% to close at $1.56 after co said U.S. FDA cleared late‑stage trial of diabetic nerve‑pain drug, pilavapadin

    ** Through Thurs, shares up ~74% over the past 12 months

    ** 3 of 5 analysts rate the stock "strong buy" or "buy", 2 rate "hold"; median PT $2.10, LSEG data reflects

(Lance Tupper is a Reuters market analyst. The views expressed are his own)

((lance.tupper@tr.com 1-646-279-6380))