Lexeo Therapeutics, a biotech company specializing in genetic medicine, has successfully raised about $100 million through its initial public offering (IPO) on the Nasdaq, under the ticker LXEO. The firm offered 9.1 million shares at $11 each, below the estimated range of $13-$15 per share. An additional 91,000 shares were also included in the offering. Despite the under-target share price, this IPO signifies renewed activity in life sciences IPOs.
The company is led by Ronald Crystal and focuses on adeno-associated virus gene therapy technologies. Lexeo's primary initiative, LX2006, which targets cardiomyopathy in Friedreich’s ataxia - a debilitating neuromuscular disorder - is currently undergoing the SUNRISE-FA trial with results due mid-2024. From the IPO proceeds, $45 million is earmarked for this project.
Another significant project is LX2020, which targets PKP2-ACM, a condition that increases the risk of sudden cardiac death. This project has been allocated $40 million from the IPO funds.
The company's Alzheimer’s disease gene therapy, LX1001, delivers the protective APOE2 protein to counter harmful APOE4. This therapy is being developed for APOE4 homozygous Alzheimer's patients and is undergoing a Phase 1/2 trial. Enrollment completion for this trial is projected by end-2023 and interim data is expected by the second half of 2024. LX1001 has been allocated $10 million from the IPO proceeds.
In addition to the IPO funding, Lexeo has secured strategic investment from Sarepta Therapeutics (NASDAQ:SRPT) and raised $185 million in Series A and B financing rounds.
The deal was managed by J.P. Morgan, Leerink Partners, Stifel, and RBC (TSX:RY) Capital Markets.
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