Galecto has announced the completion of a $64 million equity financing.
This reinforces Galecto’s existing cash balance extending the company’s cash runway into late 2022, it states.
Advance its clinical development
Galecto intends to use the funds to prepare for a potential conditional approval of GB0139 for the treatment of Idiopathic Pulmonary Fibrosis (IPF) in the European Union and to further expand and advance its clinical development pipeline. Galecto is currently conducting a Phase 2b trial of GB0139 in IPF and intends to initiate Phase 2 studies of GB1211 in liver fibrosis related to Non-Alcoholic SteatoHepatitis (NASH) and GB2064 in Myelofibrosis by the end of this year.
“Together with our existing cash balance, this raise will enable the continuing development of Galecto, including advancing our promising GB0139 product candidate, which has orphan drug designation in both the U.S. and EU, towards market. This financing will also support the further expansion of our clinical development as we aim to have three Phase 2 studies running by the end of 2020. We are looking forward to advancing our products through clinical development and potentially to market to address significant unmet medical needs,” says Hans Schambye, CEO of Galecto.
Several new investors joined
The financing was led by Soleus Capital and co-led by Eir Ventures. Several new investors joined the round: Cormorant Asset Management, Janus Henderson Investors, Hadean Ventures, Sphera, Asymmetry Capital Management, Canica, as well as current investors. These include OrbiMed, Ysios Capital, Novo Holdings, HBM Healthcare Investments, Sunstone Capital, Bristol Myers Squibb, Seventure and Maverick Ventures.
Stephan Christgau, Managing Partner of Eir Ventures, will join Galecto’s Board of Directors as a representative of the investors in this financing. Stephan was the seed venture capital investor in Galecto and previously served on the Board of Directors from 2011 to 2019.
Photo of Hans Schambye: Galecto