Lexicon Pharma drops 20% before the bell on $62.2M stock offering

• Lexicon Pharmaceuticals (NASDAQ:LXRX) stock dropped 20% before the bell on Thursday after the firm priced its $62.2M public offering of over 23.9M shares at $2.60/share.
• Underwriters were given a 30-day option to buy up to an additional ~3.6M shares at the public offering price.
• Lexicon (LXRX) will also sell nearly 24.2M shares to raise ~$62.8M in a concurrent private placement at $2.60/share to an affiliate of its largest shareholder Invus.
• The buyer will have the option to purchase, on a pro rata basis, up to an additional 3.6M shares.
• Both the offering and private placement are expected to close on or about June 5.
• The closing of the stock offering is not conditioned on the closing of the private placement.
• A portion of the net proceeds, together with existing cash and cash equivalents and short-term investments, will be used to fund sotagliflozin's commercial launch and continued R&D of its drug candidates, and for working capital.

More on Lexicon Pharmaceuticals

• Lexicon's sotagliflozin wins FDA nod for heart failure
• Lexicon Q1 results largely in line with expectations