Full Press Release Details
Up to $40 Million Private Equity Financing into a New Entity Addressing Cardiac Genetic Diseases that Existing AAV Platforms are Unable to Treat
Lexeo Contributing Expertise and Know-How in Cardiac Genetic Medicines, Preclinical Intellectual Property, and Technology, in Combination with Novel Non-Viral RNA Delivery Platform
Represents Pipeline Diversification and Advancement of Leading-Edge Cardiovascular Science
NEW YORK, June 24, 2025 (GLOBE NEWSWIRE) --Lexeo Therapeutics, Inc. (Nasdaq: LXEO), a clinical stage genetic medicine company dedicated to pioneering novel treatments for cardiovascular diseases, today announced a strategic partnership to develop therapies for genetic cardiac diseases utilizing a novel non-viral RNA platform. Combined with investment of up to $40 million from leading life-sciences investors Perceptive Xontogeny Venture Funds (“PXV Funds”) and venBio Partners (“venBio”), the partnership seeks to further revolutionize the treatment of cardiovascular diseases. The proceeds will be used to seed a new entity, the funding of which is non-dilutive to existing Lexeo shareholders.
“Delivery of DNA by adeno-associated virus has defined the first wave of genetic medicine, with potential to treat cardiovascular diseases that other modalities cannot address today. Over the next decade, however, new modalities will emerge allowing genetic medicines to treat an even broader range of cardiac diseases, and RNA therapeutics mediated by non-viral delivery are representative of this future,” said R. Nolan Townsend, Chief Executive Officer of Lexeo Therapeutics. “This partnership reflects an innovative approach to realize the therapeutic and economic value of promising preclinical science in a manner that benefits all stakeholders.”
Under the terms of the agreement, the new entity will be focused on advancing research for novel RNA-based therapeutics via non-viral delivery for the treatment of genetically mediated cardiac conditions. Lexeo will contribute its expertise in developing cardiac genetic medicines, certain existing preclinical intellectual property, and technology, which will be combined with a novel non-viral delivery platform. As consideration for its contributions, at transaction close Lexeo has received a double-digit percentage equity position in the new entity and will be entitled to future milestone payments, royalties, and opt-in rights to certain program(s).
“The genetic and precision cardiology market is estimated to be worth over $13 billion this year, and it is expected to grow to almost $40 billion by 2033,” said Fred Callori, PXV Funds Managing Director. “We see this as one of the most promising areas in biotech, where there is both a significant need and clear opportunity for innovation through the development of RNA therapeutics for cardiac disease. This collaboration brings together the right expertise, science, and strategic areas of focus to pursue and advance these treatments.”
Corey Goodman, venBio Managing Partner, added: “Lexeo is a leader in cardiac genetic medicine and there is a significant unmet need for broadening precision approaches in this category. We look forward to working with Lexeo to launch this new entity and foster innovation that has the potential to fundamentally change the treatment paradigm for patients with devastating heart conditions.”
About Lexeo TherapeuticsLexeo Therapeutics is a New York City-based, clinical stage genetic medicine company dedicated to reshaping heart health by applying pioneering science to fundamentally change how cardiovascular diseases are treated. The Company is advancing a portfolio of therapeutic candidates that take aim at the underlying genetic causes of conditions, including LX2006 for the treatment of Friedreich ataxia (FA) cardiomyopathy, LX2020 for the treatment of plakophilin-2 (PKP2) arrhythmogenic cardiomyopathy, and others for devastating diseases with high unmet need.
Cautionary Note Regarding Forward-Looking StatementsCertain statements in this press release may constitute “forward-looking statements” within the meaning of the federal securities laws, including, but not limited to, Lexeo’s expectations regarding the new entity, the new entity’s ability to obtain future financing, the amount of financing that the new entity may raise, the emergence of genetic medicines to treat cardiac diseases, Lexeo’s ability to receive future milestone payments, royalties and opt-in rights through the partnership, and the estimate of the genetic and precision cardiology market. Words such as “may,” “might,” “will,” “objective,” “intend,” “should,” “could,” “can,” “would,” “expect,” “believe,” “design,” “estimate,” “predict,” “potential,” “develop,” “plan” or the negative of these terms, and similar expressions, or statements regarding intent, belief, or current expectations, are forward-looking statements. While Lexeo believes these forward-looking statements are reasonable, undue reliance should not be placed on any such forward-looking statements. These forward-looking statements are based upon current information available to the company as well as certain estimates and assumptions and are subject to various risks and uncertainties (including, without limitation, those set forth in Lexeo’s filings with the U.S. Securities and Exchange Commission (SEC)), many of which are beyond the company’s control and subject to change. Actual results could be materially different from those indicated by such forward-looking statements as a result of many factors, including but not limited to: risks and uncertainties related to global macroeconomic conditions and related volatility; expectations regarding the initiation, progress, and expected results of Lexeo’s preclinical studies, clinical trials and research and development programs; the unpredictable relationship between preclinical study results and clinical study results; delays in submission of regulatory filings or failure to receive regulatory approval; liquidity and capital resources; and other risks and uncertainties identified in Lexeo’s Annual Report on Form 10-K for the annual period ended December 31, 2024, filed with the SEC on March 24, 2025, Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2025, filed with the SEC on May 12, 2025, as amended, and subsequent future filings Lexeo may make with the SEC. New risks and uncertainties may emerge from time to time, and it is not possible to predict all risks and uncertainties. Lexeo claims the protection of the Safe Harbor contained in the Private Securities Litigation Reform Act of 1995 for forward-looking statements. Lexeo expressly disclaims any obligation to update or alter any statements whether as a result of new information, future events or otherwise, except as required by law.