Lexicon Announces Completion Of $280 Million In Financing Transactions

THE WOODLANDS, Texas, Nov. 26, 2014 /PRNewswire/ -- Lexicon Pharmaceuticals, Inc. (Nasdaq: LXRX) today announced the completion of previously announced concurrent financing transactions resulting in gross proceeds of $280.0 million.  After fees and estimated offering expenses, Lexicon anticipates net proceeds of approximately $273.7 million from the transactions.  The transactions consisted of:

• a public offering of 49,751,244 shares of common stock, pursuant to a registration statement that has been declared effective by the Securities & Exchange Commission, resulting in net proceeds to Lexicon of approximately $46.8 million;

• a private offering to qualified institutional buyers pursuant to Rule 144A of the Securities Act of 1933, as amended, of $80.0 million in aggregate principal amount of 5.25% convertible senior notes due 2021, resulting in net proceeds to Lexicon of approximately $77.0 million; and

• a private placement of 149,253,731 shares of common stock to Artal International S.C.A., an affiliate of Invus, L.P., Lexicon's largest stockholder, resulting in net proceeds to Lexicon of approximately $149.9 million.

The public offering of common stock remains subject to an over-allotment option granted to the underwriters to purchase up to 7,462,687 additional shares of common stock.  The private offering of convertible notes remains subject to an over-allotment option granted to the initial purchasers to purchase up to an additional $15.0 million aggregate principal amount of convertible notes.

Lexicon intends to use the net proceeds from the financing transactions for the clinical development of its drug candidates and other nonclinical research and development efforts.  It may also use a portion of the net proceeds to acquire or invest in complementary products and technologies or for general corporate purposes.

The convertible notes (including the shares of common stock into which the convertible notes are convertible) and the shares of Lexicon's common stock issued to Artal have not been registered under the Securities Act, or the securities laws of any other jurisdiction, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.

About Lexicon
Lexicon is a biopharmaceutical company focused on developing breakthrough treatments for human disease. Lexicon has clinical-stage drug programs for diabetes, carcinoid syndrome, and other indications, all of which were discovered by Lexicon's research team. Lexicon has used its proprietary gene knockout technology to identify more than 100 promising drug targets.

Safe Harbor Statement
This press release contains "forward-looking" statements. Any statements contained in this press release that are not statements of historical fact may be deemed to be forward-looking statements.  Words such as "will," "intends" and similar expressions are intended to identify these forward-looking statements.  There are a number of important factors that could cause Lexicon's results to differ materially from those indicated by these forward-looking statements.  Additional risks and uncertainties relating to Lexicon and its business can be found under the heading "Risk Factors" in Lexicon's filings with the Securities and Exchange Commission, including its annual report on Form 10-K for the year ended December 31, 2013 and its Current Report on Form 8-K filed on November 20, 2014.  Unless required by applicable law, Lexicon undertakes no obligation to update or revise any such forward-looking statements, whether as a result of new information, future events or otherwise.

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SOURCE Lexicon Pharmaceuticals, Inc.