aibioLexeo Therapeutics prices public offering at $8.00 a share, plus $10 million private placement
Tickers LXEO
Lexeo agrees to sell 15,625,000 shares for expected gross proceeds of approximately $125 million. A concurrent private placement of pre-funded warrants is expected to bring approximately $10 million.
Key facts
- Company
- Lexeo Therapeutics, Inc. (NASDAQ: LXEO)
- News type
- Financings
- Primary source
- Lexeo Therapeutics, Inc. Form 8-K filed October 17, 2025 (SEC EDGAR)
Lexeo Therapeutics, Inc. (Nasdaq: LXEO) agreed on October 16, 2025 to sell 15,625,000 shares of common stock in an underwritten public offering at $8.00 per share. The company also agreed to sell pre-funded warrants in a concurrent private placement. The Form 8-K says Lexeo expects gross proceeds of approximately $125 million from the public offering and approximately $10 million from the private placement, before fees and expenses. Both deals are expected to close on October 20, 2025, subject to customary closing conditions.
The public offering
Lexeo signed an underwriting agreement with Leerink Partners LLC, as representative of the several underwriters. The underwriters agreed to buy the shares from Lexeo at $7.52 per share and offer them to the public at $8.00. Lexeo also gave the underwriters a 30-day option to buy up to an additional 2,343,750 shares at the public offering price, less underwriting discounts and commissions. The $125 million figure assumes the option is not exercised. Lexeo is selling all of the shares.
The offering is made under an effective registration statement on Form S-3 (File No. 333-283781). Wilson Sonsini Goodrich & Rosati, P.C. gave an opinion on the validity of the shares. In the press release, Lexeo said Leerink Partners, Cantor, Stifel and Oppenheimer & Co. are joint book-running managers, and Baird is lead manager. The release puts combined gross proceeds at approximately $135 million and gives slightly different share counts from the 8-K: 15,625,015 shares in the public offering and pre-funded warrants for 1,250,000 shares. The 8-K uses 15,625,000 shares and 1,250,015 warrant shares.
The private placement
On the same day, Lexeo signed a Securities Purchase Agreement with a qualified institutional buyer. The press release names the buyer as Balyasny Asset Management. According to the 8-K, Lexeo agreed to sell pre-funded warrants for 1,250,015 shares of common stock at $7.9999 each. Leerink Partners served as sole placement agent.
The buyer pays $7.9999 up front for each pre-funded warrant. The warrants have an exercise price of $0.0001 per share and are exercisable immediately. The purchaser may not exercise them if it would then own more than 9.99% of Lexeo's outstanding common stock. The holder may raise that cap to as much as 19.99%.
Lexeo also signed a Registration Rights Agreement with the purchaser. It must file a registration statement with the SEC for the resale of the shares underlying the pre-funded warrants on or before November 15, 2025. The company agreed to use its best efforts to have it declared effective no later than 60 days after closing, or 90 days if the SEC fully reviews it. The pre-funded warrants are sold in reliance on Section 4(a)(2) of the Securities Act of 1933 and are not registered.
Cash position
In a preliminary prospectus supplement on October 16, 2025, Lexeo estimated that it had $122.8 million of cash, cash equivalents and investments as of September 30, 2025. The company says KPMG LLP, its independent registered public accounting firm, has not audited or reviewed this preliminary figure. Lexeo had not completed its quarter-end close, and the number may change.
Clinical updates in the filing
Under Item 8.01, Lexeo said the FDA has indicated openness to a Biologics License Application for accelerated approval of LX2006 that pools data from its Phase I/II studies with new data from a planned pivotal study. To pool the data, Lexeo says it will submit enhanced manufacturing comparability data and meet an additional nonclinical requirement before that pivotal study begins.
For LX2020, the company said nine participants had been dosed in the HEROIC-PKP2 Phase I/II trial as of October 16, 2025. It reported one Grade 3 serious adverse event of sustained ventricular tachycardia, assessed as possibly treatment related, in a participant in the high dose cohort.
About the company
Lexeo describes itself as a New York City-based, clinical stage genetic medicine company focused on cardiovascular diseases. Its candidates include LX2006 for Friedreich ataxia cardiomyopathy and LX2020 for plakophilin-2 arrhythmogenic cardiomyopathy. Its annual report on Form 10-K was signed by R. Nolan Townsend, Chief Executive Officer and Director, and Kyle Rasbach, Chief Financial Officer.