Lexeo Therapeutics Restructures to Focus on Lead Cardiac Gene Therapies

Lexeo Therapeutics, a gene therapy biotech company, has announced a significant restructuring effort to prioritize its lead cardiac programs. The move, which includes staff layoffs and resource reallocation, aims to accelerate the development of the company's most promising candidates while extending its operational runway.

Strategic Workforce Reduction and Capital Redeployment

In April 2025, Lexeo implemented a 15% reduction in its workforce as part of a broader strategy to redirect $20 million from its wider pipeline to its lead cardiac programs. The company, which started the year with 72 full-time employees, made this decision to streamline operations and focus resources on its most advanced therapies.

"The updated capital structure is expected to enable the company to execute against key milestones for its clinical-stage pipeline, accelerate work to initiate a registrational study for LX2006 by early 2026, and maintain operational runway into 2027," Lexeo stated in its first-quarter earnings release.

Advancing Lead Cardiac Gene Therapies

Lexeo is concentrating its efforts on two primary cardiac gene therapy candidates:

1. LX2006: An AAV-based gene therapy designed to treat Friedreich's ataxia hypertrophic cardiomyopathy by increasing expression of the heart muscle protein frataxin. Lexeo plans to launch a registration trial for LX2006 in 2026, based on promising results from a pooled analysis of two studies.

2. LX2020: An AAVrh10-based gene therapy aimed at delivering a functional PKP2 gene to cardiac muscle for the treatment of PKP2-ACM, an inherited heart disease. A phase 1/2 trial for LX2020 is currently enrolling patients, with an interim readout expected in the second half of 2025.

Financial Position and Future Outlook

As of March 2025, Lexeo reported a cash position of $106.9 million. The company's restructuring efforts are expected to extend its operational runway into 2027, providing sufficient time to reach critical milestones in its lead programs.

While Lexeo's cardiac therapies take center stage, the fate of its other pipeline candidates, including three Alzheimer's gene therapies, remains uncertain. The company's most advanced Alzheimer's asset, LX1001, which has completed a phase 1/2 trial, may be subject to "business development opportunities," as mentioned in a recent SEC filing.

As Lexeo Therapeutics navigates this strategic shift, the biotech industry will be closely watching the progress of its cardiac gene therapy programs and the impact of its focused approach on the company's long-term prospects.