Lexeo Therapeutics, Inc.
For the period ended Sep 30, 2025. Filed Nov 5, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2025 · Filed Nov 5, 2025
LXEO$2.89-0.5%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-06-30; filed 2025-08-14.
0000950170-25-108427
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-09-30; filed 2025-11-05.
0001193125-25-265757
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 102 previous paragraphs and 115 current paragraphs.
78 unchanged; 19 reworded; 18 added; 3 removed; 2 previous and 0 current paragraphs rearranged.
Tables are not compared: 5 previous and 5 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (18)
Current report
Recent developments
Current report
Our most advanced cardiovascular product candidate, LX2006 for the treatment of FA cardiomyopathy, is currently being evaluated in SUNRISE-FA, our ongoing Phase 1/2 clinical trial, and in a Cornell investigator-initiated trial. In October 2025, we announced progress in regulatory interactions with the FDA on LX2006. In response to questions from us regarding the possibility of a faster path to a Biologics License Application, or BLA, the FDA has indicated openness to a BLA submission for accelerated approval that includes clinical data from our ongoing Phase 1/2 studies of LX2006 pooled with new clinical data to be generated in the planned pivotal study. To enable pooling of these data to support licensure, we will submit enhanced manufacturing comparability data and meet an additional nonclinical requirement, given our intention to leverage our optimized, high-yield Sf9-baculovirus manufacturing platform for future clinical and commercial drug supply, compared to the adherent HEK293 process used for our Phase 1/2 clinical supply. In October 2025, we shared Chemistry, Manufacturing and Controls, or CMC, data for LX2006, which were submitted to the FDA to support analytical comparability between the HEK293 manufacturing process and the Sf9-baculovirus manufacturing platform. These data demonstrate similar frataxin expressionin vitro between the two processes as measured by a quantitative relative potency assay in cardiomyocytes. In November 2025, the FDA approved this analytical comparability report establishing comparability between LX2006 HEK293 and Sf9 manufacturing processes, endorsing use of the optimized, Sf9 final commercial manufacturing process for LX2006 in the planned pivotal study and clearing compatibility requirements to begin dosing patients.
Current report
Along with the regulatory announcement, we provided an interim clinical update on LX2006, which included baseline characteristics and safety data from the 17 treated participants across the two studies, and clinical efficacy data from the 16 participants who had reached at least six months of follow up as of that time. These data showed sustained or deepening improvements in the majority of participants across both cardiac and neurologic measures of FA, exceeding the thresholds previously agreed with FDA for co-primary endpoints LVMI and frataxin expression. We shared that the FDA had previously agreed to evaluate the co-primary endpoint of LVMI at a time point earlier than 12 months. LX2006 has been generally well-tolerated across both trials to date, with no clinically significant complement activation. We continue to engage with the FDA on the planned pivotal study protocol and comparability. In discussions to date, there have been no changes to the previously disclosed alignment with the FDA on key parameters related to the LX2006 planned pivotal study.
Current report
Our second most advanced cardiovascular product candidate, LX2020 for the treatment of ACM caused by mutations in the PKP2 gene, referred to as PKP2-ACM, is currently being evaluated in HEROIC-PKP2, an ongoing Phase 1/2 clinical trial. We have completed enrollment and dosing in this trial, with ten participants dosed: three in the low dose cohort 1 (2×1013 vg/kg), three in the high dose cohort 2 (6×1013 vg/kg), and four in the dose-expansion high dose cohort 3 (6×1013 vg/kg). Across all participants dosed, LX2020 has been generally well-tolerated, with no clinically significant complement activation to date. In October 2025, we reported that one Grade 3 serious adverse event, which was assessed as possibly treatment related, of sustained ventricular tachycardia, or SVT, had been observed three months after dosing in a single participant in the high dose cohort of the HEROIC-PKP2 Phase 1/2 clinical trial. The participant was successfully treated with anti-arrhythmic medication and was discharged with no additional intervention required. This patient had a documented history of prior VTs and had an implantable cardioverter defibrillator in place.
Current report
For the three participants in low dose cohort 1 (n=2 at 12 months; n=1 at 9 months), multiple cardiac parameters were assessed at latest visit relative to baseline:
Current report
Arrythmia burden: Premature ventricular contractions were reduced in one of three participants and non-sustained ventricular tachycardia was reduced or stable in two of three participants.
Current report
Electrical activity: QRS duration was normalized or stable in two of three participants and T-wave inversions were reduced in two of three participants.
Current report
Cardiac function: Left ventricular ejection fraction and right ventricular ejection fraction were stable in three of three participants.
Current report
We anticipate sharing additional safety and clinical efficacy data in January 2026 at the J.P. Morgan Healthcare Conference once most participants in the high dose cohorts reach at least six months of follow up. This data update is expected to include data from such high dose cohort patients and three low dose participants with at least 12 months of follow up, as well as five cardiac biopsies from the high dose cohorts analyzed at baseline and three months after dosing.
Current report
Public offering
Current report
On October 20, 2025, the Company completed the October 2025 Public Offering of 17,968,750 shares of its common stock at a price of $8.00 per share, for proceeds to the Company of $134.6 million, net of transaction costs, including the full exercise of the underwriters’ over-allotment option.
Current report
Private placement
Current report
On October 20, 2025, the Company completed the October 2025 Private Placement, in which the Company sold pre-funded warrants to purchase 1,250,015 shares of the Company's common stock at a purchase price of $7.9999 per pre-funded warrant. The proceeds to the Company were $9.3 million, net of transaction costs. The pre-funded warrants issued in the October 2025 Private Placement do not expire and are immediately exercisable at an exercise price of $0.0001 per pre-funded warrant share.
Current report
Current and future capital requirements
Current report
Gain on long-term investment
Current report
The net decrease of $7.7 million in total research and development expenses for the three months ended September 30, 2025 compared to the three months ended September 30, 2024 was primarily due to decreases in (i) milestone expenses of $6.1 million, consisting primarily of a $6.0 million development milestone for our LX2020 program that was achieved during the third quarter of 2024 and subsequently paid to the selling shareholders of Stelios, (ii) employee compensation and stock-based compensation expenses of $1.1 million due to decreased headcount associated with a limited reduction-in-force undertaken in April 2025, and (iii) CMC expenses of $0.9 million. These decreases were partially offset by an increase in clinical trial expenses of $0.5 million.
Current report
Comparison of the nine months ended September 30, 2025 and 2024
Current report
Gain on long-term investment
Removed paragraphs (3)
Previous report
Our most advanced cardiovascular product candidate, LX2006 for the treatment of FA cardiomyopathy, is currently being evaluated in SUNRISE-FA, our ongoing Phase 1/2 clinical trial and in a Cornell investigator-initiated trial. In July 2024, we provided an interim clinical update, which included baseline characteristics from the 11 treated participants across the two studies and data from the eight participants who had reached at least six-months of follow-up as of that time. These data showed improvements in key cardiac biomarkers including left ventricular mass index, lateral wall thickness, and high-sensitivity troponin I. Additionally, in November 2024 we reported that we observed an increase in frataxin protein expression in the hearts of four patients that had undergone cardiac biopsies (cohort 1 (n=1), cohort 2 (n=3)) as measured by liquid chromatography-mass spectrometry, or LCMS, and immunohistochemistry. LX2006 has been generally well-tolerated across both trials to date. One year after dosing, one participant with multiple comorbidities and a history of flu-like symptoms presented with Grade 2 asymptomatic myocarditis. Six weeks later, a biopsy was negative for myocarditis and the participant remains asymptomatic. In November 2024 we announced alignment with the U.S. Food and Drug Administration, or the FDA, on key elements of a registrational development plan for LX2006, including an accelerated approval pathway with left ventricular mass index and frataxin protein expression as co-primary registrational endpoints. In February 2025, we reached further alignment with the FDA that the frataxin protein expression co-primary endpoint would be evaluated for any increase from baseline in frataxin positive area as measured by immunohistochemistry as opposed to any specific numerical threshold. In April 2025, we provided an interim clinical update, which included baseline characteristics from the 16 treated participants across the two studies, frataxin protein expression from four additional patients that had undergone cardiac biopsies (cohort 3 (n=4)), and data from the 12 participants who had reached at least six-months of follow-up as of that time. These data showed an increase in frataxin expression versus baseline in all patients that had undergone cardiac biopsies (cohort 1 (n=1), cohort 2 (n=3), cohort 3 (n=4)) as measured by LCMS, upon which we reached further alignment with the FDA to measure protein expression. These data also showed dose responsive increases in frataxin expression relative to dose cohorts, improvements in key cardiac biomarkers including left ventricular mass index, lateral wall thickness, and high-sensitivity troponin I, as well as improvements in functional measures including the Modified Friedreich's Ataxia Rating Scale, or mFARS, and Kansas City Cardiomyopathy Questionnaire, or KCCQ-12. In July 2025, we received Breakthrough Therapy designation for LX2006 for the treatment of FA cardiomyopathy from the FDA.
Previous report
Our second most advanced cardiovascular product candidate, LX2020 for the treatment of ACM caused by mutations in the PKP2 gene, referred to as PKP2-ACM, is currently being evaluated in HEROIC-PKP2, an ongoing Phase 1/2 clinical trial. To date, eight participants have been enrolled in this trial: three in cohort 1, three in cohort 2 and two in cohort 3. We have obtained post-treatment cardiac biopsies from two participants in cohort 1; the third cohort 1 participant elected to not undergo the post-treatment biopsy procedure. In these two participants with post-treatment samples, we have observed an increase in PKP2 protein expression in the heart quantified using western blot assay showing a 71% and 115% increase in PKP2 protein expression versus pre-treatment baseline. In addition, the first participant to reach six-months post-treatment experienced a 67% reduction in premature ventricular contractions from baseline and normalization of QRS duration. Across all participants dosed, LX2020 has been generally well-tolerated with no treatment-related serious adverse events to date. We expect to provide an interim clinical data update in the second half of 2025.
Previous report
Comparison of the six months ended June 30, 2025 and 2024
Reworded paragraphs (19)
Previous wording
To date, we have funded our operations primarily through proceeds from the sale of shares of our convertible preferred stock, common stock, and pre-funded warrants and warrants to purchase our common stock, including from our May 2025 Private Placement, March 2024 Private Placement, IPO and the subsequent partial exercise of the underwriters’ 30-day option to purchase additional shares of common stock. As of June 30, 2025, we had $152.5 million of cash, cash equivalents, and investments in U.S. Treasury securities. We have incurred significant operating losses since the commencement of our operations. Our ability to generate product revenue sufficient to achieve profitability will depend heavily on the successful development and eventual commercialization of one or more of our current gene therapy candidates or any future gene therapy candidates. Our net losses for the six months ended June 30, 2025 and the year ended December 31, 2024 were $58.8 million and $98.3 million, respectively, and our accumulated deficit was $338.9 million at June 30, 2025. We expect to continue to incur significant losses for the foreseeable future as we advance our current and future product candidates through preclinical and clinical development, continue to build our operations and operate as a public company.
Current wording
To date, we have funded our operations primarily through proceeds from the sale of shares of our convertible preferred stock, common stock, and pre-funded warrants and warrants to purchase our common stock, including from our October 2025 Financing Transactions, May 2025 Private Placement, March 2024 Private Placement, IPO and the subsequent partial exercise of the underwriters’ 30-day option to purchase additional shares of common stock. As of September 30, 2025, we had $122.8 million of cash, cash equivalents, and investments in U.S. Treasury securities. We have incurred significant operating losses since the commencement of our operations. Our ability to generate product revenue sufficient to achieve profitability will depend heavily on the successful development and eventual commercialization of one or more of our current gene therapy candidates or any future gene therapy candidates. Our net losses for the nine months ended September 30, 2025 and the year ended December 31, 2024 were $79.0 million and $98.3 million, respectively, and our accumulated deficit was $359.2 million at September 30, 2025. We expect to continue to incur significant losses for the foreseeable future as we advance our current and future product candidates through preclinical and clinical development, continue to build our operations and operate as a public company.
Previous wording
We expect that our general and administrative expenses will decrease in the near to medium term future relative to those incurred during the three and six months ended June 30, 2025 on a quarterly and annualized basis primarily due to lower anticipated third-party legal fees and related costs, as well as lower anticipated administrative personnel and related costs due to the limited reduction in force undertaken in April 2025, while supporting the continued research and development of our programs and the growth of our business.
Current wording
We expect that in the near to medium term future our general and administrative expenses will (i) at least approximate those incurred during the three months ended September 30, 2025 on a quarterly basis, and (ii) decrease relative to those incurred during the nine months ended September 30, 2025 on an annualized basis, primarily due to lower anticipated third-party legal fees and related costs, while supporting the continued research and development of our programs and the growth of our business.
Previous wording
The net increase of $18.1 million in general and administrative expenses for the six months ended June 30, 2025 compared to the six months ended June 30, 2024 was primarily due to increases in (i) third-party legal fees and associated costs of $16.2 million, and (ii) employee compensation and stock-based compensation expenses of $2.1 million primarily due to increased headcount and equity awards granted since June 30, 2024. These increases were partially offset by a decrease in investor relations and public relations costs of $0.3 million.
Current wording
The net decrease of $2.2 million in general and administrative expenses for the three months ended September 30, 2025 compared to the three months ended September 30, 2024 was primarily due to a decrease in third-party legal fees and associated costs of $1.6 million, as well as a decrease in stock-based compensation expense of $0.8 million. These decreases were partially offset by increases in capital and franchise tax expenses of $0.2 million.
Previous wording
We recognized interest income of $1.3 million and $2.3 million for the three months ended June 30, 2025 and June 30, 2024, respectively, primarily related to interest earned on our investments in U.S. government money market funds and our investments in U.S Treasury securities, with the decrease primarily due lower average invested balances, as well as lower interest rates.
Current wording
We recognized interest income of $1.5 million and $2.1 million for the three months ended September 30, 2025 and September 30, 2024, respectively, primarily related to interest earned on our investments in U.S. government money market funds and our investments in U.S Treasury securities, with the decrease primarily due lower average invested balances, as well as lower interest rates.
Previous wording
The following table summarizes our results of operations for the six months ended June 30, 2025 and 2024 (in thousands):
Current wording
The following table summarizes our results of operations for the nine months ended September 30, 2025 and 2024 (in thousands):
Previous wording
The following table summarizes our research and development expenses incurred for the six months ended June 30, 2025 and 2024 (in thousands):
Current wording
The following table summarizes our research and development expenses incurred for the nine months ended September 30, 2025 and 2024 (in thousands):
Previous wording
The net decrease of $1.8 million in total research and development expenses for the three months ended June 30, 2025 compared to the three months ended June 30, 2024 was primarily due to decreases in (i) chemistry, manufacturing, and control, or CMC, expenses of $1.3 million, (ii) clinical trial costs of $1.2 million excluding an adjustment reducing estimated accrued clinical trial expenses by $2.2 million for our LX1001 program recorded in the second quarter of 2024, (iii) license fees of $0.6 million related to the Third Cornell License Agreement, (iv) non-clinical and preclinical expenses of $0.6 million primarily related to our cardiovascular disease programs, and (v) employee compensation and stock-based compensation expenses of $0.3 million associated with a limited reduction-in-force undertaken in April 2025. These decreases were partially offset by an adjustment reducing estimated accrued clinical trial expenses by $2.2 million for our LX1001 program recorded in the second quarter of 2024.
Current wording
The net decrease of $8.1 million in total research and development expenses for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 was primarily due to decreases in (i) milestone expenses of $6.1 million, consisting primarily of a $6.0 million development milestone for our LX2020 program that was achieved during the third quarter of 2024 and subsequently paid to the selling shareholders of Stelios, (ii) CMC expenses of $2.4 million, (iii) non-clinical, quality, and regulatory expenses of $0.8 million, (iv) license fees of $0.6 million related to the Third Cornell License Agreement that were incurred in 2024, and (v) clinical trial costs of $0.4 million excluding an adjustment reducing estimated accrued clinical trial expenses by $2.2 million for our LX1001 program recorded in the second quarter of 2024. These decreases were partially offset by an adjustment reducing estimated accrued clinical trial expenses by $2.2 million for our LX1001 program recorded in the second quarter of 2024.
Previous wording
The net increase of $9.0 million in general and administrative expenses for the three months ended June 30, 2025 compared to the three months ended June 30, 2024 was primarily due to increases in (i) third-party legal fees and associated costs of $8.3 million, and (ii) employee compensation and stock-based compensation expenses of $0.7 million primarily due to increased headcount and equity awards granted since June 30, 2024.
Current wording
The net increase of $15.9 million in general and administrative expenses for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 was primarily due to an increase in third-party legal fees and associated costs of $14.6 million, as well as an increase in employee compensation costs of $1.4 million primarily due to increased headcount.
Previous wording
We recorded non-operating income of approximately $3.4 million during the three months ended June 30, 2025 related to an unrealized gain on convertible preferred stock received that was recorded at fair value to long-term investment.
Current wording
We recorded non-operating income of approximately $3.4 million during the nine months ended September 30, 2025 related to an unrealized gain on convertible preferred stock received that was recorded at fair value to long-term investment.
Previous wording
We recognized interest income of $2.5 million and $4.0 million for the six months ended June 30, 2025 and June 30, 2024, respectively, primarily related to interest earned on our investments in U.S. government money market funds and our investments in U.S Treasury securities, with the decrease primarily due to lower average invested balances, as well as lower interest rates.
Current wording
We recognized interest income of $3.9 million and $6.1 million for the nine months ended September 30, 2025 and September 30, 2024, respectively, primarily related to interest earned on our investments in U.S. government money market funds and our investments in U.S Treasury securities, with the decrease primarily due to lower average invested balances, as well as lower interest rates.
Previous wording
Since our inception, we have not generated any revenue from product sales and have incurred significant operating losses and negative cash flows from our operations. We expect to incur significant expenses and operating losses for the foreseeable future as we advance the clinical development of our product candidates. Since our inception through June 30, 2025, we funded our operations primarily through proceeds from the sale of shares of our convertible preferred stock, common stock, and pre-funded warrants and warrants to purchase our common stock, including from our May 2025 Private Placement, March 2024 Private Placement, IPO and the subsequent partial exercise of the underwriters’ 30-day option to purchase additional shares of common stock, with net proceeds since our inception totaling $451.0 million. As of June 30, 2025 and December 31, 2024, we had cash, cash equivalents, and investments in U.S. Treasury Securities of $152.5 million and $128.5 million, respectively.
Current wording
Since our inception, we have not generated any revenue from product sales and have incurred significant operating losses and negative cash flows from our operations. We expect to incur significant expenses and operating losses for the foreseeable future as we advance the clinical development of our product candidates. Since our inception through September 30, 2025, we funded our operations primarily through proceeds from the sale of shares of our convertible preferred stock, common stock, and pre-funded warrants and warrants to purchase our common stock, including from our October 2025 Financing Transactions, May 2025 Private Placement, March 2024 Private Placement, IPO and the subsequent partial exercise of the underwriters’ 30-day option to purchase additional shares of common stock, with estimated net proceeds since our inception totaling $594.9 million. As of September 30, 2025 and December 31, 2024, we had cash, cash equivalents, and investments in U.S. Treasury Securities of $122.8 million and $128.5 million, respectively.
Previous wording
On March 24, 2025 we filed a prospectus supplement to the prospectus which forms a part of our effective shelf registration statement on Form S-3, dated December 13, 2024, which registers the offering, issuance, and sale of up to $75.0 million of common stock pursuant to our ATM Program. As of June 30, 2025, we have not sold any shares of common stock pursuant to the ATM Program.
Current wording
On March 24, 2025 we filed a prospectus supplement to the prospectus which forms a part of our effective shelf registration statement on Form S-3, dated December 13, 2024, which registers the offering, issuance, and sale of up to $75.0 million of common stock pursuant to our ATM Program. As of September 30, 2025, we have not sold any shares of common stock pursuant to the ATM Program. In October 2025, we raised $153.8 million in equity capital from the October Financing Transactions, receiving net proceeds of $143.9 million after transaction costs.
Previous wording
The following table summarizes our sources and uses of cash for the six months ended June 30, 2025 and June 30, 2024 (in thousands):
Current wording
The following table summarizes our sources and uses of cash for the nine months ended September 30, 2025 and September 30, 2024 (in thousands):
Previous wording
During the six months ended June 30, 2025, net cash used in operating activities consisted primarily of our net loss of $58.8 million, which included an unrealized gain of $3.4 million recorded to other non-operating income upon receipt of our long-term investment in convertible preferred stock, and which was partially offset by $6.8 million of stock-based compensation expense, $5.4 million of net cash provided by changes in operating assets and liabilities, and $1.0 million of depreciation and amortization of operating and finance right-of-use assets.
Current wording
During the nine months ended September 30, 2025, net cash used in operating activities consisted primarily of our net loss of $79.0 million, which included an unrealized gain of $3.4 million recorded to other non-operating income upon receipt of our long-term investment in convertible preferred stock, in addition to $7.1 million of net cash used in changes in operating assets and liabilities, which were partially offset by $9.4 million of stock-based compensation expense and $1.3 million of depreciation expense and amortization of operating and finance right-of-use assets.
Previous wording
During the six months ended June 30, 2024, net cash used in operating activities consisted primarily of our net loss of $42.9 million, which was partially offset by $5.2 million of stock-based compensation expense, $1.8 million of net cash provided by changes in operating assets and liabilities, and $1.0 million of depreciation and amortization of operating and finance right-of-use assets.
Current wording
During the nine months ended September 30, 2024, net cash used in operating activities consisted primarily of our net loss of $72.4 million, which was partially offset by $9.1 million of net cash provided by changes in operating assets and liabilities, $9.0 million of stock-based compensation expense, and $1.5 million of depreciation expense and amortization of operating and finance right-of-use assets.
Previous wording
During the six months ended June 30, 2025, net cash used in investing activities was $23.6 million and consisted primarily of purchases of investments in U.S. Treasury securities of $55.4 million, which was partially offset by $31.9 million of proceeds received upon maturities of investments in U.S. Treasury securities.
Current wording
During the nine months ended September 30, 2025, net cash provided by investing activities was $11.4 million and consisted primarily of proceeds received upon maturities of investments in U.S. Treasury securities of $67.2 million, which was partially offset by purchases of investments in U.S. Treasury securities of $55.4 million and purchases of lab equipment of $0.4 million.
Previous wording
During the six months ended June 30, 2024, net cash used in investing activities was $0.4 million and consisted primarily of purchases of lab equipment.
Current wording
During the nine months ended September 30, 2024, net cash used in investing activities was $0.5 million and consisted primarily of purchases of lab equipment.
Previous wording
During the six months ended June 30, 2025, net cash provided by financing activities consisted primarily of the net proceeds received from the May 2025 Private Placement offering of $73.1 million, as well as proceeds received from the common stock issuances under the 2023 ESPP of $0.2 million, which were partially offset by $0.3 million of principal payments made on equipment finance leases.
Current wording
During the nine months ended September 30, 2025, net cash provided by financing activities consisted primarily of the net proceeds received from the May 2025 Private Placement offering of $73.1 million, as well as proceeds received from common stock issuances under the 2023 ESPP of $0.3 million, which were partially offset by $0.4 million of principal payments made on equipment finance leases.
Previous wording
During the six months ended June 30, 2024, net cash provided by financing activities consisted primarily of the net proceeds received from the March 2024 Private Placement offering of $88.7 million, as well as $0.4 million of proceeds received from the exercise of stock options, which were partially offset by $0.2 million of principal payments made on equipment finance leases.
Current wording
During the nine months ended September 30, 2024, net cash provided by financing activities consisted primarily of the net proceeds received from the Private Placement offering of $88.7 million, as well as $0.5 million of proceeds received from the exercise of stock options, which were partially offset by $0.3 million of principal payments made on equipment finance leases.
Rearranged previous paragraphs (2)
Previous report — wording carried elsewhere
The net decrease of $0.4 million in total research and development expenses for the six months ended June 30, 2025 compared to the six months ended June 30, 2024 was primarily due to decreases in (i) CMC expenses of $1.5 million, (ii) clinical trial costs of $0.9 million excluding an adjustment reducing estimated accrued clinical trial expenses by $2.2 million for our LX1001 program recorded in the second quarter of 2024, (iii) license fees of $0.6 million related to the Third Cornell License Agreement, and (iv) non-clinical and preclinical expenses of $0.4 million primarily related to our cardiovascular disease programs. These decreases were partially offset by (i) an adjustment reducing estimated accrued clinical trial expenses by $2.2 million for our LX1001 program recorded in the second quarter of 2024, and (ii) employee compensation and stock-based compensation expenses of $1.0 million primarily due to equity awards granted since June 30, 2024.
Previous report — wording carried elsewhere
We recorded non-operating income of approximately $3.4 million during the six months ended June 30, 2025 related to an unrealized gain on convertible preferred stock received that was recorded at fair value to long-term investment.