Lexicon Announces Completion of Rights Offering to Stockholders

THE WOODLANDS, Texas, Dec. 23, 2011 /PRNewswire/ -- Lexicon Pharmaceuticals, Inc. (Nasdaq: LXRX) announced today that it has completed its previously announced rights offering pursuant to an effective shelf registration statement.  Under the rights offering, an aggregate of 142,492,883 shares of common stock will be issued at a subscription price of $1.13 per share, resulting in aggregate gross proceeds to Lexicon of approximately $161 million.

"We are pleased to announce the successful completion of our rights offering and appreciate the strong participation of our shareholders as we continue to advance our programs through key clinical milestones," said Arthur T. Sands, president and chief executive officer of Lexicon. "This additional investment provides us with added financial strength and flexibility as we begin to advance our programs towards late-stage development and commercialization."

Lexicon conducted the rights offering at the election of two of its largest stockholders, Invus, L.P. and Invus C.V., pursuant to their contractual rights to require Lexicon to initiate a pro rata rights offering to its stockholders.  Invus, L.P. and its affiliates subscribed for an aggregate of 115,044,247 shares of common stock in the rights offering and will beneficially own approximately 58.3% of Lexicon's outstanding common stock following completion of the rights offering.

This press release does not constitute an offer to sell, or the solicitation of an offer to buy, these securities, nor will there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale is not permitted.

About Lexicon

Lexicon is a biopharmaceutical company focused on discovering breakthrough treatments for human disease.  Lexicon currently has four drug programs in mid-stage development for diabetes, irritable bowel syndrome, carcinoid syndrome and rheumatoid arthritis, all of which were discovered by Lexicon's research team.

Safe Harbor Statement

This press release contains "forward-looking statements," including statements relating to Lexicon's expectations regarding the completion, timing and size of the rights offering.  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 "anticipated," "will," "proposed" 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, including risks and uncertainties related to market conditions and the satisfaction of customary closing conditions related to the rights offering..  Additional risks and uncertainties relating to the rights offering, Lexicon and its business can be found under the headings "Factors Affecting Forward Looking Statements" and "Risk Factors" in Lexicon's annual report on Form 10-K for the year ended December 31, 2010, as filed with the Securities and Exchange Commission, in Lexicon's other filings with the Securities and Exchange Commission and under the heading "Risk Factors" in the final prospectus supplement relating to the rights offering as filed with the Securities and Exchange Commission.  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.

SOURCE Lexicon Pharmaceuticals, Inc.