Lexeo Therapeutics Sees Biggest Retail Follower Surge Among Biotech Stocks After Record-Breaking Rally: What's The Big Draw?
The company reported an adjusted Q4 loss of $0.78 per share, beating expectations for a $0.81 loss.
FollowShares of clinical-stage genetic medicine company Lexeo Therapeutics, Inc. soared over 50% on Monday, marking their best day on record. The rally extended into after-hours trading following the company's latest quarterly results, which largely pleased investors.
Lexeo specializes in therapies for hereditary and acquired diseases, with a focus on genetically defined cardiovascular conditions and a subset of Alzheimer's disease.
Its pipeline includes LX2006 for treating Friedreich's ataxia cardiomyopathy and LX1001 for APOE4 homozygous Alzheimer's patients.
According to Stocktwits data, the company reported an adjusted fourth-quarter loss of $0.78 per share, beating expectations for a $0.81 loss. The early-stage biotech firm is still in a pre-revenue stage.
CEO R. Nolan Townsend highlighted regulatory progress on LX2006, noting ongoing collaboration with the FDA for an accelerated approval pathway.
He also announced promising early safety data for LX2020, a treatment for arrhythmogenic cardiomyopathy (PKP2-ACM).
The company expects to share additional clinical updates later in 2025, with the second cohort of a Phase 1/2 trial now fully enrolled.
Despite the stock's sharp rally, Leerink lowered its price target from $19 to $18, which still implies a potential fourfold gain from current levels.
The research firm remains bullish, citing positive registrational design elements in the LX2006 pivotal trial and interim data for LX2020.
Lexeo ended 2024 with $128.5 million in cash and investments, which management believes will sustain operations into 2027.
On Stocktwits, Lexeo's following surged 13% — the largest jump among biotech stocks.
The stock, however, remains down over 39% year-to-date, with short interest creeping up from 6.2% to 7.3%.
Traders on Stocktwits are watching technical patterns closely.
"Nice breakout. I could see this running for a while," one user noted.
Another speculated that a cup-and-handle formation was forming.
According to Koyfin, seven Wall Street analysts cover Lexeo. Four rate it a 'buy,' while three assign a 'strong buy' or equivalent rating.
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