Lexeo Therapeutics Reports $32.7 Million Net Loss in Q1 2025, Increases Operating Expenses

Lexeo Therapeutics, Inc. reported a net loss of $32.7 million for the first quarter of 2025, compared to a net loss of $21.7 million for the same period in 2024. The company's total operating expenses increased to $33.8 million from $23.3 million year-over-year, driven primarily by a rise in general and administrative expenses, which surged to $16.6 million from $7.5 million. Research and development expenses also rose, totaling $17.2 million, up from $15.7 million in the prior year. The increase in expenses reflects the company's ongoing investment in its clinical programs, particularly for its lead product candidates, LX2006 and LX2020.

As of March 31, 2025, Lexeo's cash, cash equivalents, and investments stood at $106.9 million, a decrease from $128.5 million at the end of 2024. The company has an accumulated deficit of $312.8 million. Lexeo's financial position is bolstered by its recent capital-raising efforts, including a private placement that generated approximately $88.7 million in 2024. The company has also initiated an at-the-market equity offering program with a potential aggregate offering price of up to $75 million, although no shares have been sold under this program as of the reporting date.

In terms of operational developments, Lexeo is advancing its clinical trials for LX2006, which is being evaluated for the treatment of Friedreich's Ataxia (FA) cardiomyopathy, and LX2020, targeting arrhythmogenic cardiomyopathy caused by mutations in the PKP2 gene. The company has reported positive interim results from these trials, including improvements in key cardiac biomarkers and protein expression levels. However, the company also noted that it has faced challenges in patient enrollment, particularly for rare diseases, which could impact the timelines for its clinical programs.

Lexeo's strategic focus includes enhancing its research and development capabilities while managing costs. In April 2025, the company announced a limited reduction in force affecting approximately 15% of its workforce, aimed at reallocating resources to its most promising clinical programs. The company anticipates that its current cash reserves will be sufficient to fund operations into 2027, although it acknowledges the need for additional capital to support ongoing and future development activities.

Looking ahead, Lexeo expects to continue incurring significant losses as it advances its product candidates through clinical trials and seeks regulatory approvals. The company remains committed to its goal of reshaping heart health through innovative gene therapies, but it recognizes the inherent risks and uncertainties associated with drug development, including regulatory challenges and competition from other biotechnology firms.