News & Events

Simpson Thacher is representing an affiliate of The Invus Group in a significant investment in Lexicon Pharmaceuticals, Inc., a biopharmaceutical company focused on the discovery and development of breakthrough treatments for human disease. Invus will purchase newly issued shares at an initial closing representing 40% of Lexicon's outstanding common stock for approximately $205 million and will have the right to invest up to an additional $345 million over the next three to four years through its rights to require Lexicon to offer to all its stockholders pro rata rights to purchase common stock. The initial closing is subject to shareholder and regulatory approval. In connection with the execution of the stock purchase agreement, Invus was also issued warrants to purchase shares which, when combined with shares it already owns, equal 19.9% of Lexicon’s outstanding common stock. The shares to be issued at the initial closing will be reduced for each share issued upon exercise of warrants. Assuming the completion of this investment based on Lexicon's current share capital, Invus will become the largest stockholder of Lexicon and, pursuant to the terms of a stockholders' agreement, will have certain governance and other rights.

The attorneys working on this deal included: Robert Spatt, Peter Malloy, Irina Petrova, and Shiao Chien (M&A); Alvin Brown and Aimee Adler (Employee Benefits); Gary Mandel and Noah Beck (Tax); Kerry Konrad and Noah Leibowitz (Intellectual Property); Michael Isby (Environmental); Ken Ehrhard (Antitrust). Summer Associate Douglas Tang provided invaluable assistance.