Galecto Raises $64 Million to Advance Fibrosis and Oncology Pipeline

Rare Daily Staff

Galecto raised $64 million to support development of its pipeline of experimental therapies to treat fibrotic diseases and cancer, including lead candidate GB0139 for the treatment of idiopathic pulmonary fibrosis.

Soleus Capital and Eir Ventures co-led the financing. New investors Cormorant Asset Management, Janus Henderson Investors, Hadean Ventures, Sphera, Asymmetry Capital Management, and Canica participated, along with current investors OrbiMed, Ysios Capital, Novo Holdings, HBM Healthcare Investments, Sunstone Capital, Bristol Myers Squibb, Seventure, and Maverick Ventures.

Idiopathic pulmonary fibrosis (IPF) is a serious, life-limiting lung disease characterized by fibrosis and scarring of lung tissue with a median survival of three to five years after diagnosis. Replacement of normal lung tissue by fibrosis results in restriction in the ability to fill the lungs with air and decreased transfer of oxygen from inhaled air into the bloodstream resulting in lower oxygen delivery to the brain and other organs. Patients with IPF most often suffer from progressive shortness of breath, particularly with exertion; chronic cough; fatigue and weakness; and chest discomfort.

Currently approved drugs slow down but do not halt disease progression and the only curative therapy is lung transplant, an option available for a small group of patients. While estimates vary, it is believed that IPF could affect approximately 130,000 patients in the United States and approximately 76,000 patients in Europe.

Proceeds from the financing will be used to prepare for a potential conditional approval of GB0139 for the treatment of IPF in the European Union and to further expand and advance Galecto’s 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 2020.

“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 E.U., towards market,” said Hans Schambye, CEO of Galecto. “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.”

Photo: Hans Schambye, CEO of Galecto