Lexeo Therapeutics Raises $95 Million Through Private Placement

Rare Daily Staff

Lexeo, a company pursuing the development of gene therapies for rare and common diseases, said it raised $95 million through an oversubscribed private placement that extends its cash runway into 2027.

Braidwell and Adage Capital Partners co-led the financing with participation from new and existing investors including RA Capital Management, Citadel’s Surveyor Capital, Eventide Asset Management and Novo Holdings.

The financing reflects a growing appetite among investors for biotech and rare disease drug developers following an extended period of companies facing difficulties raising money. During the first two months of 2024, rare disease drug developers have seen financing activity more than triple over the same period a year ago.

Lexeo intends to use net proceeds from the financing to fund advancement of ongoing clinical stage programs, and for working capital and general corporate purposes.

The company sold 6.3 million shares of its common stock at a price of $15.13 per share. The company expects the gross proceeds from the private placement to be approximately $95 million, before deducting any offering-related expenses. The financing is expected to close on March 13, 2024, subject to customary closing conditions.