NEW YORK - Lexeo Therapeutics, Inc. (NASDAQ:LXEO), a clinical-stage genetic medicine company, has entered into an in-license agreement with Cornell University to acquire intellectual property rights that will bolster the development of its gene therapy candidate, LX2006, for Friedreich ataxia (FA) cardiomyopathy. This licensing deal includes rights to both current and future clinical data from an ongoing Phase 1A trial of AAVrh.10hFXN, which is being conducted by Weill Cornell Medicine.
The SUNRISE-FA Phase 1/2 trial, sponsored by Lexeo, and the Weill Cornell Medicine study have together treated a total of 11 participants to date, with no treatment-related serious adverse events observed. The interim clinical data readout, which will now encompass data from both studies, is expected mid-year 2024.
Lexeo's LX2006 is a gene therapy administered as a one-time intravenous infusion, designed to target the cardiac manifestations of FA by delivering a functional frataxin gene. This therapy has the potential to improve mitochondrial function in myocardial cells, addressing a significant unmet medical need as there are currently no approved treatments for FA cardiomyopathy, the leading cause of death in patients with FA.
The larger, combined dataset from the two studies is expected to facilitate accelerated regulatory discussions, with Lexeo also planning to analyze natural history data and baseline characteristics of study participants to further characterize the cardiovascular disease phenotype seen in FA cardiomyopathy.
The licensing agreement leverages years of collaborative research between Weill Cornell Medicine and Lexeo, with the shared goal of developing a potentially life-saving therapy for patients with FA cardiomyopathy. LX2006 has already received Orphan Drug, Rare Pediatric Disease, and Fast Track designations from the FDA.
This news is based on a press release statement issued by Lexeo Therapeutics.
InvestingPro Insights
As Lexeo Therapeutics, Inc. (NASDAQ:LXEO) advances its clinical trials for the groundbreaking gene therapy candidate LX2006, the company's financial health and market performance are crucial for sustaining its ambitious research and development efforts. With a market capitalization of $321.09 million, Lexeo's financial position is under particular scrutiny, especially as it faces the challenges of a competitive biotech landscape.
InvestingPro data indicates that Lexeo's price-to-earnings (P/E) ratio stands at -1.08, with an adjusted P/E ratio for the last twelve months as of Q4 2023 at -4.87, reflecting investor concerns about the company's current profitability. Additionally, the company's return on assets for the same period was significantly negative at -56.06%, underscoring the high costs associated with its research-intensive endeavors.
Despite these challenges, Lexeo's strategic moves, such as the recent licensing deal with Cornell University, demonstrate a commitment to bolstering its intellectual property portfolio and enhancing its clinical trial prospects. It's also worth noting that Lexeo holds more cash than debt on its balance sheet, which is a positive sign for its financial stability (InvestingPro Tip 0). Moreover, the company's liquid assets exceed its short-term obligations (InvestingPro Tip 6), providing some cushioning against financial pressures as it burns through cash quickly (InvestingPro Tip 1).
For investors looking to delve deeper into Lexeo's financials and future outlook, additional InvestingPro Tips are available, providing valuable insights into the company's performance and potential. There are 8 more tips listed on InvestingPro, and interested readers can find them at https://www.investing.com/pro/LXEO. For those considering an InvestingPro subscription, use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
While the company does not pay a dividend to shareholders (InvestingPro Tip 8), the focus remains on the potential long-term rewards of successful clinical outcomes and the subsequent commercialization of its therapies. The interim clinical data readout expected mid-year 2024 will be a pivotal moment for Lexeo and its stakeholders, as it could significantly influence the company's trajectory and market valuation.
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