Lexicon Pharma Secures Up to $200M Non-Dilutive Term Loan Financing

THE WOODLANDS, Texas, Dec. 05, 2017 (GLOBE NEWSWIRE) -- Lexicon Pharmaceuticals(Nasdaq:LXRX)

that it has entered into a definitive term loan agreement with BioPharma Credit PLC and BioPharma Credit Investments IV Sub LP, investment funds managed by Pharmakon Advisors, L.P., that provides Lexicon with up to $200 million of borrowing capacity available in two tranches, each maturing in December 2022 and bearing interest at 9.0% per annum. The first $150 million is available immediately and an additional tranche of $50 million is available for draw by March 2019 at Lexicon’s option if net XERMELO sales are greater than $25 million in the preceding quarter.

"This non-dilutive financing, along with the current cash on hand, will allow us to finalize the sotagliflozin type 1 diabetes applications, comply with our financial commitments to our collaborator, Sanofi, on the type 2 diabetes program and fund our commercial costs while the XERMELO launch ramps up," said Jeffrey L. Wade, J.D., executive vice president, corporate and administrative affairs and chief financial officer. "As a result, we believe that this financing offers Lexicon the necessary runway for the company to achieve positive cash flow based on the progress of our late-stage assets, while enabling continued advancement of clinical development programs for earlier-stage product candidates."

"We are pleased to be partnering with Lexicon in this transaction," said Martin Friedman, Managing Member of Pharmakon Advisors. "We are impressed with the Lexicon team and the commercial opportunities for XERMELO and are thrilled to support Lexicon in its ramp up of this product that fills a well-defined unmet patient need."

Vinson & Elkins LLP acted as counsel to Lexicon. Akin Gump Strauss Hauer & Feld LLP and Baker Botts LLP served as legal advisors to BioPharma Credit PLC and BioPharma Credit Investments IV Sub LP.