Lexeo Therapeutics' stock falls 15% in trading debut after its IPO priced below range

Lexeo Therapeutics Inc.'s stock (LXEO) tumbled 15% in its trading debut on Friday, after the company's initial public offering priced below the proposed price range. The stock priced at $11, below a $13 to $15 range. The stock is trading on Nasdaq under the ticker "LXEO." The company sold 9 million shares to raise $99 million at a valuation of $271.7 million. "We are a clinical stage genetic medicine company dedicated to transforming healthcare by applying pioneering science to fundamentally change how disease is treated," the company says in its filing documents. Its most advanced product is LX2006, a treatment for patients with Friedreich's ataxia, or FA, cardiomyopathy, which is currently being evaluated in an ongoing Phase 1/2 clinical trial. FA cardiomyopathy is a condition that involves damage to the nerves that innervate the heart and changes in cardiac muscle that lead to cardiomyopathy, or heart muscle disease. Proceeds of the deal are earmarked for advancing its treatments through clinical development, including a treatment for Alzheimer's disease. The company is loss making and pre-revenue, which is not unusual for early-stage biotechs. The Renaissance IPO ETF (IPO) has gained 29% in the year to date, while the S&P 500 has gained 14%.

-Ciara Linnane

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11-03-23 1239ET

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