Lexeo Therapeutics, Perceptive Xontogeny Venture Funds and venBio Partners Announce Partnership to Advance Novel Cardiac RNA Therapeutics

Rhea-AI Summary

Lexeo Therapeutics (NASDAQ:LXEO) has announced a strategic partnership to develop novel RNA-based therapeutics for genetic cardiac diseases through a new entity backed by up to $40 million in private equity financing from Perceptive Xontogeny Venture Funds and venBio Partners.

The new venture will combine Lexeo's expertise in cardiac genetic medicines with a novel non-viral RNA delivery platform. Lexeo will receive a double-digit percentage equity stake, milestone payments, royalties, and opt-in rights to certain programs. The genetic and precision cardiology market is projected to grow from $13 billion in 2025 to nearly $40 billion by 2033.

Positive

• Non-dilutive funding structure preserves value for existing Lexeo shareholders
• Double-digit equity stake plus milestone payments, royalties, and program opt-in rights for Lexeo
• Partnership targets $13 billion genetic and precision cardiology market with projected growth to $40 billion by 2033
• Strategic expansion into RNA therapeutics complements existing AAV platform

Negative

• Early-stage preclinical development carries significant technical and regulatory risks
• New entity will require substantial development time before potential commercialization
• Competitive landscape in RNA therapeutics and cardiac genetic medicines

Insights

Biotech Investment Analyst

Lexeo gains non-dilutive asset monetization while maintaining significant future upside in expanding RNA cardiac therapeutics market.

This strategic partnership represents a textbook example of optimal preclinical asset monetization. Lexeo has effectively created non-dilutive value by contributing its cardiac genetic medicine expertise and preclinical IP to a new entity while securing a double-digit equity stake plus future milestone payments, royalties, and program opt-in rights.

The $40 million investment from blue-chip life science investors PXV Funds and venBio creates immediate validation while allowing Lexeo to:

• Extract value from early-stage assets without diverting internal resources
• Maintain significant exposure to the upside potential through multiple economic channels
• Expand technological reach beyond AAV-based approaches
• Potentially address a broader range of cardiac conditions

This deal structure epitomizes capital efficiency in biotech. By establishing this separate entity, Lexeo keeps its core AAV platform focused while still participating in the emerging RNA therapeutics space – effectively giving shareholders exposure to both current and future modalities without additional dilution.

The market opportunity is substantial, with the genetic and precision cardiology sector valued at $13 billion currently and projected to reach $40 billion by 2033 (308% growth). This partnership positions Lexeo to capture value across multiple technological approaches within this expanding market.

Genetic Medicine Specialist

Lexeo strategically expands beyond AAV delivery into non-viral RNA therapeutics, addressing limitations of current genetic medicine platforms.

This partnership marks a significant technological expansion beyond Lexeo's core AAV (adeno-associated virus) platform into non-viral RNA delivery systems for cardiac genetic disorders. While AAV vectors have dominated the first wave of genetic medicines, they face inherent limitations including:

• Packaging capacity constraints
• Potential immunogenicity issues
• Challenges with redosing
• Manufacturing complexities

Non-viral RNA delivery platforms potentially overcome these limitations while expanding the range of treatable cardiac conditions. This dual-platform approach allows Lexeo to address both current and future genetic medicine paradigms.

The cardiovascular application is particularly significant as many cardiac disorders involve large genes or require sustained expression in non-dividing cardiomyocytes. RNA therapeutics with non-viral delivery could theoretically reach targets inaccessible to AAV vectors.

From a scientific perspective, this represents pipeline diversification without technological dilution – Lexeo maintains its AAV expertise while gaining exposure to complementary RNA approaches. By establishing a separate entity with dedicated funding and focus, Lexeo increases the probability of success for both platforms.

This bifurcated approach acknowledges the technological evolution occurring in genetic medicine – from viral vector dominance to a more diverse ecosystem of delivery systems – while ensuring Lexeo maintains relevance across multiple therapeutic generations.

Up to $40 Million Private Equity Financing into a New Entity Addressing Cardiac Genetic Diseases that Existing AAV Platforms are Unable to Treat

Lexeo Contributing Expertise and Know-How in Cardiac Genetic Medicines, Preclinical Intellectual Property, and Technology, in Combination with Novel Non-Viral RNA Delivery Platform

Represents Pipeline Diversification and Advancement of Leading-Edge Cardiovascular Science

NEW YORK, June 24, 2025 (GLOBE NEWSWIRE) -- Lexeo Therapeutics, Inc. (Nasdaq: LXEO), a clinical stage genetic medicine company dedicated to pioneering novel treatments for cardiovascular diseases, today announced a strategic partnership to develop therapies for genetic cardiac diseases utilizing a novel non-viral RNA platform. Combined with investment of up to $40 million from leading life-sciences investors Perceptive Xontogeny Venture Funds (“PXV Funds”) and venBio Partners (“venBio”), the partnership seeks to further revolutionize the treatment of cardiovascular diseases. The proceeds will be used to seed a new entity, the funding of which is non-dilutive to existing Lexeo shareholders.

“Delivery of DNA by adeno-associated virus has defined the first wave of genetic medicine, with potential to treat cardiovascular diseases that other modalities cannot address today. Over the next decade, however, new modalities will emerge allowing genetic medicines to treat an even broader range of cardiac diseases, and RNA therapeutics mediated by non-viral delivery are representative of this future,” said R. Nolan Townsend, Chief Executive Officer of Lexeo Therapeutics. “This partnership reflects an innovative approach to realize the therapeutic and economic value of promising preclinical science in a manner that benefits all stakeholders.”

Under the terms of the agreement, the new entity will be focused on advancing research for novel RNA-based therapeutics via non-viral delivery for the treatment of genetically mediated cardiac conditions. Lexeo will contribute its expertise in developing cardiac genetic medicines, certain existing preclinical intellectual property, and technology, which will be combined with a novel non-viral delivery platform.   As consideration for its contributions, at transaction close Lexeo has received a double-digit percentage equity position in the new entity and will be entitled to future milestone payments, royalties, and opt-in rights to certain program(s).

“The genetic and precision cardiology market is estimated to be worth over $13 billion this year, and it is expected to grow to almost $40 billion by 2033,” said Fred Callori, PXV Funds Managing Director. “We see this as one of the most promising areas in biotech, where there is both a significant need and clear opportunity for innovation through the development of RNA therapeutics for cardiac disease. This collaboration brings together the right expertise, science, and strategic areas of focus to pursue and advance these treatments.”

Corey Goodman, venBio Managing Partner, added: “Lexeo is a leader in cardiac genetic medicine and there is a significant unmet need for broadening precision approaches in this category. We look forward to working with Lexeo to launch this new entity and foster innovation that has the potential to fundamentally change the treatment paradigm for patients with devastating heart conditions.”

About Lexeo Therapeutics
Lexeo Therapeutics is a New York City-based, clinical stage genetic medicine company dedicated to reshaping heart health by applying pioneering science to fundamentally change how cardiovascular diseases are treated. The Company is advancing a portfolio of therapeutic candidates that take aim at the underlying genetic causes of conditions, including LX2006 for the treatment of Friedreich ataxia (FA) cardiomyopathy, LX2020 for the treatment of plakophilin-2 (PKP2) arrhythmogenic cardiomyopathy, and others for devastating diseases with high unmet need.

Cautionary Note Regarding Forward-Looking Statements
Certain statements in this press release may constitute “forward-looking statements” within the meaning of the federal securities laws, including, but not limited to, Lexeo’s expectations regarding the new entity, the new entity’s ability to obtain future financing, the amount of financing that the new entity may raise, the emergence of genetic medicines to treat cardiac diseases, Lexeo’s ability to receive future milestone payments, royalties and opt-in rights through the partnership, and the estimate of the genetic and precision cardiology market. Words such as “may,” “might,” “will,” “objective,” “intend,” “should,” “could,” “can,” “would,” “expect,” “believe,” “design,” “estimate,” “predict,” “potential,” “develop,” “plan” or the negative of these terms, and similar expressions, or statements regarding intent, belief, or current expectations, are forward-looking statements. While Lexeo believes these forward-looking statements are reasonable, undue reliance should not be placed on any such forward-looking statements. These forward-looking statements are based upon current information available to the company as well as certain estimates and assumptions and are subject to various risks and uncertainties (including, without limitation, those set forth in Lexeo’s filings with the U.S. Securities and Exchange Commission (SEC)), many of which are beyond the company’s control and subject to change. Actual results could be materially different from those indicated by such forward-looking statements as a result of many factors, including but not limited to: risks and uncertainties related to global macroeconomic conditions and related volatility; expectations regarding the initiation, progress, and expected results of Lexeo’s preclinical studies, clinical trials and research and development programs; the unpredictable relationship between preclinical study results and clinical study results; delays in submission of regulatory filings or failure to receive regulatory approval; liquidity and capital resources; and other risks and uncertainties identified in Lexeo’s Annual Report on Form 10-K for the annual period ended December 31, 2024, filed with the SEC on March 24, 2025, Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2025, filed with the SEC on May 12, 2025, as amended, and subsequent future filings Lexeo may make with the SEC. New risks and uncertainties may emerge from time to time, and it is not possible to predict all risks and uncertainties. Lexeo claims the protection of the Safe Harbor contained in the Private Securities Litigation Reform Act of 1995 for forward-looking statements. Lexeo expressly disclaims any obligation to update or alter any statements whether as a result of new information, future events or otherwise, except as required by law.

Media Response:
Media@lexeotx.com

Investor Response:
Carlo Tanzi, Ph.D.
ctanzi@kendallir.com

FAQ

What is the value of the private equity financing for Lexeo's new RNA therapeutics venture?

The new entity will receive up to $40 million in private equity financing from Perceptive Xontogeny Venture Funds and venBio Partners.

What will Lexeo Therapeutics (LXEO) receive in return for its contribution to the new entity?

Lexeo will receive a double-digit percentage equity stake in the new entity, plus future milestone payments, royalties, and opt-in rights to certain programs.

What is the market size for genetic and precision cardiology treatments?

The market is currently worth $13 billion in 2025 and is expected to grow to almost $40 billion by 2033.

What technology will the new Lexeo partnership focus on developing?

The partnership will focus on developing novel RNA-based therapeutics using non-viral delivery for treating genetically mediated cardiac conditions.

How will this partnership affect existing Lexeo shareholders?

The funding structure is non-dilutive to existing Lexeo shareholders, preserving their equity value while providing strategic expansion opportunities.