Lexicon Pharmaceuticals Secures $94.6 Million in Financing to Accelerate Drug Development

Lexicon Pharmaceuticals has unveiled a comprehensive financing strategy combining a $41.6 million public offering and a concurrent private placement valued at $41.1 million, bringing total gross proceeds to approximately $94.6 million. The company intends to deploy these net proceeds to fund ongoing research and development initiatives across its drug candidate pipeline and support general corporate operations. The financing has already commenced, with the public offering pricing set at $1.30 per share.

Dual Financing Structure and Investment Partners

The public offering comprises 32 million shares of common stock priced at $1.30 per share, generating the anticipated $41.6 million in gross proceeds. Lexicon has also granted the underwriters a 30-day option to purchase an additional 4.8 million shares, providing additional capital flexibility if market conditions permit.

In the concurrent private placement, Lexicon has engaged an affiliate of Invus, L.P., a strategic investor, to acquire shares for approximately $41.1 million in aggregate gross proceeds. This private placement involves 22.40 million shares of common stock alongside 0.18 million shares of Series B convertible preferred stock—convertible into 9.22 million shares at $65.00 per share. The private placement purchaser also holds pre-emptive rights to acquire additional Series B Convertible Preferred Stock, with an additional agreed purchase of 182,779 shares convertible into 9.14 million common shares at $65.00 per share, representing approximately $11.9 million in further capital contribution.

Jefferies and Piper Sandler are serving as joint book-running managers, while H.C. Wainwright & Co. acts as lead manager for the offering, underscoring the institutional confidence in Lexicon’s strategic direction.

Growing Revenue and Narrowing Losses Signal Commercial Traction

For the nine-month period ending September 30, 2025, Lexicon demonstrated significant financial progress. Total revenue reached $44.31 million, representing a dramatic 901% increase compared to $4.43 million in the corresponding year-ago period. This performance reflects $40.7 million in licensing revenue from the company’s collaboration with pharmaceutical giant Novo Nordisk, plus $3.6 million generated from U.S. commercial sales of INPEFA during the initial nine months of 2025.

Net operating losses also improved substantially, narrowing to $34.81 million (or $0.10 per share) from $166.64 million (or $0.54 per share) in the prior-year period—a 79% reduction. This trajectory underscores Lexicon’s path toward sustainable profitability, with revenue growth accelerating while operational costs remain controlled.

Strong Product Pipeline Including FDA-Approved INPEFA Drives Growth Prospects

Lexicon’s clinical portfolio is anchored by INPEFA (Sotagliflozin), an FDA-approved once-daily oral tablet designed to reduce the risk of cardiovascular death, heart failure hospitalizations, and urgent heart failure visits in adults with heart failure, type 2 diabetes mellitus, chronic kidney disease, and related cardiovascular risk factors. The product is currently being evaluated for additional indications including Hypertrophic Cardiomyopathy, expanding its addressable market.

Beyond INPEFA, Lexicon’s development pipeline includes Pilavapadin, a candidate for Diabetic Peripheral Neuropathic Pain and Postherpetic Neuralgia, and LX9851, targeting the expanding obesity and weight management indication. These candidates position Lexicon across high-potential therapeutic areas with significant commercial opportunities.

Market Response and Trading Dynamics

On the day of the financing announcement, Lexicon’s stock declined 4.86% in premarket trading to $1.37 per share, a typical response reflecting the dilutive impact of equity capital raises. The broader 52-week trading range for the stock has extended from a low of $0.28 to a high of $1.83, reflecting the volatility inherent in clinical-stage and commercial-stage biopharmaceutical companies. At the prior session close, shares had traded at $1.44, down 4% on the news.

The financing completion represents a critical milestone for Lexicon, providing the capital runway necessary to scale INPEFA’s commercial launch, advance pipeline candidates through development stages, and maintain operational flexibility as the company transitions toward revenue-driven growth trajectories in the competitive biopharmaceutical market.