Lexicon Pharmaceuticals Reaches Agreements to Exchange Convertible Notes, Reduce Outstanding Indebtedness
September 23 2020 - 6:43PM
Lexicon Pharmaceuticals, Inc. (Nasdaq: LXRX) announced today that
it has entered into separate, privately-negotiated exchange
agreements with certain holders of its 5.25% Convertible Senior
Notes due 2021 under which such holders have agreed to exchange an
aggregate principal amount of $62.55 million of Notes in exchange
for aggregate consideration consisting of $41.03 million in cash
(including $1.07 million of accrued interest) and 8,746,117 shares
of Lexicon’s common stock, par value $0.001 per share.
The transactions are expected to close by
September 28, 2020, subject to customary closing conditions.
Immediately following the closings, $24.95 million in aggregate
principal amount of the Notes will remain outstanding.
The completion of the transactions will reduce
Lexicon’s remaining interest expense through 2021 on the exchanged
Notes by approximately $3.9 million. Once completed, and together
with other debt reductions, including the repayment of Lexicon’s
secured loan concurrent with the closing of its sale of XERMELO®
(telotristat ethyl) and related assets to TerSera Therapeutics,
LLC, Lexicon will have reduced the principal amount of its
outstanding debt by approximately 90% since June 30, 2020, better
aligning with its strategic focus on its LX9211 neuropathic pain
program and other research and development assets.
This press release does not constitute an offer to sell or the
solicitation of an offer to buy any securities of the Company. The
issuance of common stock has not been registered under the
Securities Act of 1933 (the “Securities Act”) or the securities
laws of any other jurisdiction, and these securities may not be
offered or sold in the United States absent registration or an
applicable exemption from the Securities Act and applicable state
laws.
About
LX9211
LX9211 is a potent, orally delivered, selective
small molecule inhibitor of AAK1, a target with a pain phenotype
discovered and extensively characterized in an alliance with
Bristol Myers Squibb. Preclinical studies of LX9211 demonstrated
central nervous system penetration and reduction in pain behavior
in models of neuropathic pain without affecting opiate pathways.
Lexicon holds exclusive research, development and commercialization
rights to LX9211 and additional compounds acting through AAK1 under
the alliance.
About Lexicon
Pharmaceuticals
Lexicon is a biopharmaceutical company with a
mission of pioneering medicines that transform patients’ lives.
Through its Genome5000™ program, Lexicon scientists studied the
role and function of nearly 5,000 genes and identified more than
100 protein targets with significant therapeutic potential in a
range of diseases. Through the precise targeting of these proteins,
Lexicon is pioneering the discovery and development of innovative
medicines to safely and effectively treat disease. Lexicon advanced
one of these medicines to market and has a pipeline of promising
drug candidates in clinical and preclinical development in diabetes
and metabolism, neuropathic pain and other indications. For
additional information, please visit www.lexpharma.com.
Safe Harbor Statement
This press release contains “forward-looking statements,”
including statements relating to Lexicon’s financial position,
long-term outlook on its business and the clinical development and
therapeutic and commercial potential of its drug candidates. In
addition, this press release also contains forward looking
statements relating to Lexicon’s growth and future operating
results, discovery and development of products, strategic alliances
and intellectual property, as well as other matters that are not
historical facts or information. All forward-looking statements are
based on management’s current assumptions and expectations and
involve risks, uncertainties and other important factors,
specifically including Lexicon’s ability to meet its capital
requirements, successfully conduct preclinical and clinical
development and obtain necessary regulatory approvals of
sotagliflozin, LX9211 and its other potential drug candidates on
its anticipated timelines, achieve its operational objectives,
obtain patent protection for its discoveries and establish
strategic alliances, as well as additional factors relating to
manufacturing, intellectual property rights, and the therapeutic or
commercial value of its drug candidates. Any of these risks,
uncertainties and other factors may cause Lexicon’s actual results
to be materially different from any future results expressed or
implied by such forward-looking statements. Information identifying
such important factors is contained under “Risk Factors” in
Lexicon’s annual report on Form 10-K for the year ended December
31, 2019, as filed with the Securities and Exchange Commission.
Lexicon undertakes no obligation to update or revise any such
forward-looking statements, whether as a result of new information,
future events or otherwise.
For Inquiries:
Chas SchultzExecutive Director, Corporate
Communications and Patient AdvocacyLexicon Pharmaceuticals(281)
863-3421cschultz@lexpharma.com
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