Lexicon Pharmaceuticals Secures Up To $200 Million Non-Dilutive Term Loan Financing
December 05 2017 - 2:00AM
Lexicon Pharmaceuticals, Inc. (Nasdaq:LXRX) today announced that it
has entered into a definitive term loan agreement with BioPharma
Credit PLC and BioPharma Credit Investments IV Sub LP, investment
funds managed by Pharmakon Advisors, L.P., that provides Lexicon
with up to $200 million of borrowing capacity available in two
tranches, each maturing in December 2022 and bearing interest at
9.0% per annum. The first $150 million is available immediately and
an additional tranche of $50 million is available for draw by March
2019 at Lexicon’s option if net XERMELO sales are greater than $25
million in the preceding quarter.
“This non-dilutive financing, along with the
current cash on hand, will allow us to finalize the sotagliflozin
type 1 diabetes applications, comply with our financial commitments
to our collaborator, Sanofi, on the type 2 diabetes program and
fund our commercial costs while the XERMELO launch ramps up,” said
Jeffrey L. Wade, J.D., executive vice president, corporate and
administrative affairs and chief financial officer. “As a result,
we believe that this financing offers Lexicon the necessary runway
for the company to achieve positive cash flow based on the progress
of our late-stage assets, while enabling continued advancement of
clinical development programs for earlier-stage product
candidates.”
“We are pleased to be partnering with Lexicon in
this transaction,” said Martin Friedman, Managing Member of
Pharmakon Advisors. “We are impressed with the Lexicon team and the
commercial opportunities for XERMELO and are thrilled to support
Lexicon in its ramp up of this product that fills a well-defined
unmet patient need.”
Vinson & Elkins LLP acted as counsel to
Lexicon. Akin Gump Strauss Hauer & Feld LLP and Baker Botts LLP
served as legal advisors to BioPharma Credit PLC and BioPharma
Credit Investments IV Sub LP.
About Lexicon
Pharmaceuticals
Lexicon is a fully integrated biopharmaceutical
company that is applying a unique approach to gene science based on
Nobel Prize-winning technology to discover and develop precise
medicines for patients with serious, chronic conditions. Through
its Genome5000™ program, Lexicon scientists have studied the role
and function of nearly 5,000 genes over the last 20 years and have
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. In addition to its first commercial product,
XERMELO® (telotristat ethyl), Lexicon is developing telotristat
ethyl in additional indications like fibrotic diseases and solid
tumors based on preclinical work. Beyond life cycle management of
XERMELO, Lexicon has a pipeline of promising drug candidates in
clinical development in diabetes and metabolism and neuropathic
pain. For additional information please visit
www.lexpharma.com.
About Pharmakon Advisors, L.P. and the
BioPharma Credit
Funds
Established in 2009, Pharmakon Advisors, L.P. is the investment
manager of the BioPharma Credit funds. Funds managed by Pharmakon
Advisors have raised a total of $2.4 billion, including the $762
million IPO of BioPharma Credit PLC on the London Stock Exchange in
March of 2017, and have invested in 26 different financing
transactions for companies in the life sciences. Pharmakon is
affiliated with Royalty Pharma, the leading investor in
biopharmaceutical royalties, with $17.0 billion in assets and a
20-year track record.
Safe Harbor Statement
This press release contains “forward-looking
statements,” including statements relating to Lexicon’s growth and
future operating results, discovery, development and
commercialization 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 those relating to Lexicon’s ability to meet its capital
requirements, successfully commercialize XERMELO (telotristat
ethyl), successfully conduct preclinical and clinical development
and obtain necessary regulatory approvals of sotagliflozin, LX2761,
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, that 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, 2016, 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 Investor Inquiries:
Kimberly Lee, D.O.Head of Investor Relations and
Corporate StrategyLexicon Pharmaceuticals(281)
863-3383klee@lexpharma.com
For Media Inquiries:
Chas SchultzSenior Director, Corporate
Communications and AdvocacyLexicon Pharmaceuticals(281)
863-3421cschultz@lexpharma.com
Lexicon Pharmaceuticals (NASDAQ:LXRX)
Historical Stock Chart
From Mar 2024 to Apr 2024
Lexicon Pharmaceuticals (NASDAQ:LXRX)
Historical Stock Chart
From Apr 2023 to Apr 2024