Lexicon Announces Loan Facility Of $150M With Oxford Finance To Support Sotagliflozin Commercialization

Lexicon Pharmaceuticals Inc LXRX entered into a loan facility with Oxford Finance LLC for $150 million to support commercial preparations and the potential launch of sotagliflozin in heart failure.
The loan facility consists of four tranches, each maturing in March 2027.
An initial $25 million tranche was funded at closing. The second $25 million tranche is available before August 31, contingent upon the acceptance of filing by the FDA of Lexicon's planned resubmission of sotagliflozin for heart failure.
Related: Lexicon Pharma Pulls Sotagliflozin US Application Due To Technical Issue, Shares Fall.
The third $50 million tranche is available before June 30, 2023, contingent upon U.S. approval of sotagliflozin for heart failure.
The final $50 million tranche is available before the expiration of a three or four-year interest-only payment period.
In connection with the initiation of the facility and first tranche funding, Lexicon granted Oxford a warrant to purchase 420,673 shares of Lexicon's common stock at an exercise price of $2.08 per share, exercisable through March 2027.
Price Action: LXRX shares are up 3.64% at $2.28 on the last check Friday.