Lexicon Pharmaceuticals Announces Stockholder Approval of Invus Investment of Up to $550 Million
August 23 2007 - 3:18PM
PR Newswire (US)
- Invus to Make Initial Investment Now of $205 Million in Common
Stock at Significant Premium THE WOODLANDS, Texas, Aug. 23
/PRNewswire-FirstCall/ -- Lexicon Pharmaceuticals, Inc.
(NASDAQ:LXRX) announced that its financing arrangement with Invus,
L.P. was approved by its stockholders at a special stockholders'
meeting today, with over 98% of all votes cast supporting the Invus
investment. In the initial investment, Invus will purchase
approximately 50.8 million shares of Lexicon common stock for
approximately $205 million, representing a weighted-average
purchase price of approximately $4.04 per share. The initial Invus
investment is expected to close on August 28th. As part of the
approved transaction, Lexicon stockholders, including Invus, may
invest an additional $345 million over the next four years. These
combined common stock purchases will provide Lexicon with operating
capital of up to approximately $550 million to help it achieve the
goals set forth in its 10 to 10 drug discovery and development
program. The 10 to 10 program is an ongoing initiative to advance
10 drug candidates into human clinical trials by the end of 2010.
Lexicon expects these ten investigational new drugs to result from
its genetics-based drug discovery platform and to include both
small molecules and antibodies. The company plans to develop and
commercialize its products either independently or under corporate
alliances. Lexicon currently has two investigational new drugs in
human clinical trials and anticipates initiating human testing of
two additional compounds in the first quarter of 2008. "The Invus
transaction provides the financial flexibility to fund our
discovery and development pipeline, expand our internal clinical
and regulatory capabilities, and enable our pursuit of a
commercialization and collaboration strategy that maximizes our
value and is less subject to short-term financing pressures," said
Arthur T. Sands, M.D., Ph.D., founder, president and chief
executive officer of Lexicon. "We are in a very strong financial
position to advance the development of our discoveries into
multiple investigational new drugs." "We are committing substantial
capital and support to enable Lexicon to develop a diverse and full
pipeline of novel drugs that address large markets and major unmet
medical needs based on their proprietary platform," said Raymond
Debbane, founder and president of The Invus Group, LLC. "We look
forward to helping the company implement its strategy over the
years to come." More details of the Invus transaction may be found
in Lexicon's proxy statement filed with the SEC on July 20, 2007.
About Lexicon Pharmaceuticals Lexicon Pharmaceuticals is a
biopharmaceutical company focused on the discovery and development
of breakthrough treatments for human disease. Lexicon currently has
development programs underway for such areas of major unmet medical
need as irritable bowel syndrome and cognitive disorders. The
company has used its proprietary gene knockout technology to
discover more than 100 promising drug targets and create an
extensive pipeline of clinical and preclinical programs in the
therapeutic areas of diabetes and obesity, cardiovascular disease,
psychiatric and neurological disorders, cancer, immune system
disorders and ophthalmic disease. To advance the development and
commercialization of its programs, Lexicon is working both
independently and through collaborators including Bristol-Myers
Squibb Company, Genentech, Inc. and N.V. Organon. For additional
information about Lexicon and its programs, please visit
http://www.lexpharma.com/. About Invus Group Invus is a New
York-based investment firm with additional offices in London and
Paris. Invus invests in a variety of equity transactions, including
buyouts, longer term public equity investments, venture capital,
and expansion financings. Invus manages in excess of $4 billion of
capital. Invus has achieved both cash on cash multiples and annual
internal rates of return over 22 years that are at the very top of
the private equity industry. Invus manages interests in a broad
range of industries, including consumer goods, consumer services,
education, software, biotechnology and medical devices. The Invus
principals draw on their broad experience in partnering with
management teams and boards to help formulate and execute
strategies that maximize long-term value. Safe Harbor Statement
This press release contains "forward-looking statements," including
statements relating to, without limitation, all statements
regarding the agreement with Invus to invest in Lexicon, 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 those relating to
Lexicon's ability to successfully conduct preclinical and clinical
development of its potential drug candidates, advance additional
candidates into preclinical and clinical development, obtain
necessary regulatory approvals, 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
"Factors Affecting Forward-Looking Statements" and "Risk Factors"
in Lexicon's annual report on Form 10-K for the year ended December
31, 2006, 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. DATASOURCE: Lexicon Pharmaceuticals,
Inc. CONTACT: Bobbie Faulkner, Manager of Investor Relations of
Lexicon Pharmaceuticals, Inc., +1-281-863-3503, Web site:
http://www.lexpharma.com/
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