Lexicon enters deals worth up to $610M

US drugmaker Lexicon Pharmaceuticals and New York-based investment firm the Invus Group have entered into a strategic financing agreement, which will see the latter invest $205.0 million this year and up to an additional $345.0 million over the next four years.

The transaction, which is designed to fund Lexicon's development into a fully-integrated biopharmaceutical company, provided Invus with warrants to purchase 16.4 million shares of Lexicon's common stock at a purchase price of $3.09 per share. Invus will also buy another 20.4 million shares, bringing its total holding to around 40%. In return, Invus is entitled to ask the Texan firm to initiate up to two rights offerings.

Lexicon also reported that it has signed an $60.0 million product development agreement with USA-based private-equity firm Symphony Capital Partners, which will focus on moving three of its drug candidates into clinical assessment. The deal establishes the new group Symphony Icon for $45.0 million, with the remaining $15.0 million being provided to Lexicon for general corporate purposes.