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Lexicon expects to raise $165M in stock offering

Tue, 03/16/2010 - 7:17am
The Associated Press

Lexicon Pharmaceuticals Inc. said Tuesday it expects to raise approximately $165 million by selling stock to the public and to its largest shareholder, Invus LP.

Lexicon will offer 87.7 million shares to the public and 59.3 million to Invus, which allows Invus to maintain its stake in the company. The shares will be priced at $1.15 each, a discount of 19 percent to their closing price on Monday.

The underwriters of the offering will have an option to buy an additional 8.8 million shares to cover any over allotments. If that happens, Invus can buy another 6 million shares.

Lexicon had 175.6 million shares on the market as of March 1. If all the shares are sold, including over allotments, its share count will nearly double to 337.4 million.

The company is performing midstage clinical development on drugs intended to treat irritable bowel syndrome, carcinoid syndrome, rheumatoid arthritis, and diabetes.

In morning trading, Lexicon Pharmaceuticals shares fell 16 cents, or 11 percent, to $1.26. The stock has traded in a 52-week range of 89 cents to $3.78.

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