Lexeo Therapeutics, a clinical-stage genetic medicine company focused on cardiovascular diseases, announced on May 27, 2025, that it has secured $80 million in private placement financing to advance its pipeline of transformative genetic therapies. The funding round was co-led by Frazier Life Sciences and Janus Henderson Investors, with participation from both new and existing institutional investors.
Financing Structure and Timeline
The private placement involves the issuance of 20,790,120 shares of common stock and pre-funded warrants to purchase 6,963,556 shares, priced at $2.8825 per share with accompanying warrants. Each warrant allows the purchase of one-half share of common stock at an exercise price of $2.82 per share, expiring on May 28, 2029. The transaction is expected to close on May 28, 2025, subject to customary closing conditions.
The investor syndicate includes Adar1 Capital Management, Affinity Healthcare Fund, LP, Ally Bridge Group, Coastlands Capital, Surveyor Capital (a Citadel company), Vestal Point Capital, and Woodline Partners LP. J.P. Morgan and Oppenheimer & Co. served as co-lead placement agents, with Baird also acting as placement agent.
Strategic Impact on Development Programs
"This financing will enable Lexeo to build on its leadership in cardiac genetic medicines as we continue to advance our clinical stage pipeline," said R. Nolan Townsend, Chief Executive Officer of Lexeo Therapeutics. "With the support of an exceptional group of new and existing long-term investors, we believe we remain well-positioned to accelerate development of our programs and drive innovation with next-generation therapies that could redefine the treatment paradigm for devastating cardiovascular conditions."
The proceeds from this financing, combined with current cash, cash equivalents and marketable securities, are expected to fund Lexeo's operating and capital expenditures into 2028. Critically, the funding will support operations through the potential 2027 efficacy readout for LX2006 in Friedreich ataxia cardiomyopathy, a key milestone for the company's lead program.
Pipeline Focus on Genetic Cardiovascular Diseases
Lexeo is advancing a portfolio of therapeutic candidates that target the underlying genetic causes of cardiovascular conditions. The company's pipeline includes LX2006 for the treatment of Friedreich ataxia cardiomyopathy and LX2020 for the treatment of plakophilin-2 (PKP2) arrhythmogenic cardiomyopathy, among other programs addressing devastating diseases with high unmet medical need.
The New York City-based company positions itself as dedicated to reshaping heart health by applying pioneering science to fundamentally change how cardiovascular diseases are treated. The company's approach focuses on addressing genetic causes rather than symptomatic treatment, potentially offering transformative therapeutic options for patients with inherited cardiovascular conditions.
Regulatory and Market Considerations
The securities sold in this private placement have not been registered under the Securities Act of 1933 and may not be offered or sold in the United States absent registration or applicable exemption. Lexeo has agreed to file a registration statement with the U.S. Securities and Exchange Commission to register the resale of the shares and warrant shares sold in the private placement.
The private placement was conducted in accordance with applicable Nasdaq rules and was priced to satisfy the "Minimum Price" requirement as defined in Nasdaq rules, ensuring compliance with exchange listing standards.
