Lexicon Pharmaceuticals, Inc 8-K, filed Aug 4, 2020
Lexicon Pharmaceuticals, Inc. (LXRX)
8-K
2020-08-04
For: 2020-07-29
View Original
Added on
April 05, 2026
About this 8-K
Lexicon Pharmaceuticals, Inc filed this 8-K on August 4, 2020, reporting on events of July 29, 2020.
Items reported
- Item 2.05: Exit or restructuring costs
- Item 5.02: Director or officer change, or executive pay
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
__________________
FORM 8-K
__________________
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): July 29, 2020
(Exact name of registrant as specified in its charter)
| (State or other jurisdiction of incorporation or organization) | (Commission File Number) | (I.R.S. Employer Identification Number) | ||||||
(Address of principal executive offices and Zip Code)
(281 ) 863-3000
(Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligations of the registrant under any of the following provisions:
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.05 Costs Associated with Exit or Disposal Activities.
As a result of our entry into a Purchase and Sale Agreement, dated July 29, 2020, with TerSera Therapeutics LLC (the “Purchase Agreement”), pursuant to which we agreed to sell our XERMELO® (telotristat ethyl) product and related assets, we intend to implement a reduction in force which will reduce our workforce by approximately fifty percent. We estimate that we will incur an aggregate of approximately $9.4 million to $10.4 million in pre-tax charges in connection with the transaction contemplated by the Purchase Agreement and the associated reduction in force, most of which will be paid by the end of 2020, and all of which are expected to be cash expenditures. These pre-tax charges are expected to be comprised of (a) up to approximately $3.4 million in costs associated with the transaction contemplated by the Purchase Agreement and (b) up to approximately $7 million in severance and other employee costs associated with the reduction in force.
Item 5.02 Departure of Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
In connection with our entry into the Purchase Agreement and the associated reduction in force, on July 29, 2020 we determined to terminate the employment of Pablo Lapuerta, M.D., our Executive Vice President and Chief Medical Officer, and Alexander A. Santini, our Executive Vice President and Chief Commercial Officer, in each case effective as of September 30, 2020.
We agreed to pay Dr. Lapuerta $541,811 in severance and retention payments in lieu of the severance payments to which he was otherwise entitled under his offer letter. We agreed to pay Mr. Santini $556,901 in severance and retention payments.
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
| Lexicon Pharmaceuticals, Inc. | ||||||||
| Date: August 3, 2020 | By: | /s/ Brian T. Crum | ||||||
| Brian T. Crum | ||||||||
Vice President and General Counsel | ||||||||