Galecto seeks US listing

Fibrosis biotech Galecto has announced an initial public offering (IPO) with a USD 100.00 million to fund clinical development, research and trials.

The Delaware-incorporated, Denmark-based company has hired BofA Securities, SVB Leerink and Credit Suisse for the first-time share sale on Nasdaq.

It designing therapeutics targeting the biological processes that lie at the heart of fibrosis and impact a broad range of fibrotic and related diseases, including cancer.

The initial focus is on the development of small-molecule inhibitors of galectin-3 and lysyl oxidase-like 2, or LOXL2, which play key roles in regulating this condition.

Lead candidate GB0139, is an inhaled inhibitor of galectin-3 for the treatment of severe fibrotic lung diseases, such as idiopathic pulmonary fibrosis (IPF).

IPF is a life-threatening progressive fibrotic disease of the lung that affects about 100,000 people in US, according to the prospectus.

Galecto noted that “while there are currently two approved therapies for the treatment of lung fibrosis, neither has been associated with improvements in overall survival”.

The group added both of these existing drugs have been associated with significant side effects leading to poor beneficial adherence.

Galecto incurred a net loss of USD 36.50 million and USD 15.90 million for the years ended 31st December 2019 and 2018, respectively, and of USD 11.60 million for the six months ended 30th June 2020.

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As of 30th June 2020, the company had an accumulated deficit of USD 81.10 million and, as of 30th September 2020, it had USD 85.50 million in cash and equivalents.

Galecto has financed operations to date primarily by aggregate net proceeds of USD 166.40 million from the issue of convertible preferred shares and notes, and common stock.

The group’s most recent funding round featured the sale of 2.37 million series D shares at USD 27.11 apiece to raise a total USD 64.20 million from the likes of Novo Holdings, OrbiMed and Bristol-Myers Squibb, among others.

Zephyr, the M&A database published by Bureau van Dijk, shows 151 IPOs by companies operating in the pharmaceuticals, biotechnology and life sciences sectors have been announced globally in 2020 to date.

Of these, 13 listings target Western European-based players and the largest by value features ADC Therapeutics of Switzerland raising USD 232.67 million on the New York Stock Exchange in May.

© Zephus Ltd

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