Lexicon prices $80,000,000 aggregate principal amount of 5.25% Convertible Senior Notes

Lexicon Pharmaceuticals, Inc. (Nasdaq: LXRX) today announced that it has priced its offering of $80,000,000 aggregate principal amount of 5.25% Convertible Senior Notes due 2021 (the "Convertible Notes") in a private offering within the United States. The Convertible Notes were offered to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the "Securities Act"). Lexicon has also granted the initial purchasers an option to purchase up to an additional $15,000,000 aggregate principal amount of the Convertible Notes on the same terms and conditions, solely to cover over-allotments. Lexicon expects to close the offering on November 26, 2014, subject to the satisfaction of customary closing conditions.

The Convertible Notes will be the general senior unsecured obligations of Lexicon and will accrue interest at a rate of 5.25%, payable semi-annually in arrears, and will mature on December 1, 2021. The Convertible Notes will be convertible into Lexicon's common stock, initially at a rate of 829.1874 shares of common stock per $1,000 principal amount of Convertible Notes. This represents an initial effective conversion price of $1.206 per share of common stock. The initial conversion price represents a premium of 20% to the $1.005 per share closing price of Lexicon's common stock on the NASDAQ Global Select Market on November 20, 2014.

Lexicon estimates that the net proceeds from the offering will be approximately $77.0 million (or approximately $91.5 million if the initial purchasers exercise their over-allotment option in full), after deducting the initial purchasers' discount and estimated offering expenses payable by Lexicon. Lexicon intends to use the net proceeds from the offering for the clinical development of its drug candidates and other nonclinical research and development efforts. It may also use a portion of the net proceeds to acquire or invest in complementary products and technologies or for general corporate purposes.

Holders of the Convertible Notes will have the right to require Lexicon to repurchase for cash all or a portion of their Convertible Notes at 100% of their principal amount, plus any accrued and unpaid interest, upon the occurrence of a fundamental change (as defined in the indenture relating to the Convertible Notes). Lexicon will also be required to increase the conversion rate for holders who convert their Convertible Notes in connection with certain fundamental changes occurring prior to the maturity date.

The Convertible Notes (including the shares of Lexicon's common stock into which the Convertible Notes are convertible) have not been registered under the Securities Act, or the securities laws of any other jurisdiction, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.

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