Galecto Biotech secures €79m in Series C funding to advance idiopathic pulmonary fibrosis treatment

Galecto Biotech, a Denmark-based pharmaceutical company specializing in galectin modulators for severe diseases like idiopathic pulmonary fibrosis (IPF) and cancer, has successfully raised €79 million through a Series C financing round. This funding was co-led by Ysios Capital and OrbiMed.

New and Existing Investors Support Galecto Biotech’s Growth

The Series C round saw participation from new investors including Ysios Capital, OrbiMed, HBM Healthcare Investments, Bristol Myers-Squibb, OrbiMed Israel, Seventure Partners, and Maverick Ventures. They join the ranks of existing investors Novo Seeds, M Ventures, and Sunstone Capital.

Funding to Propel Phase 2/3 Clinical Trials

Galecto Biotech plans to utilize the new capital to advance a global, multi-center Phase 2/3 clinical trial of its inhaled TD139, a selective galectin-3 inhibitor, for the treatment of IPF. The trial will be conducted across Europe and North America, following promising results from Phase 1/2a studies of TD139. The funding will also support additional clinical trials for oral and ocular Gal-3 inhibitor drugs.

CEO Highlights Key Milestones

Hans Schambye, CEO of Galecto Biotech, emphasized the significance of the €79 million financing. He stated, “The closing of this €79 million financing is a significant milestone for Galecto as it allows us to quickly take TD139 into the Phase 2/3 study, the design for which has been agreed with the FDA and MHRA. The financing will also enable clinical studies for two additional programs, which are based on galectin modulators optimized for dosing in fibrotic diseases of other organs, such as the liver and eye. We welcome and thank our new and existing investors for their commitment to advancing our galectin modulator products to late-stage clinical development.”

Innovative Approach to Idiopathic Pulmonary Fibrosis

TD139, designed for inhalation, aims to directly target fibrotic tissue in the lungs while minimizing systemic exposure. In Phase 1/2 proof-of-concept studies, the drug demonstrated safety, tolerability, and effective engagement with macrophages, a key cellular target in fibrotic diseases.

Endorsements from Key Investors

Karen Wagner, General Partner at Ysios Capital, remarked, “Galecto is the clear leader in the field of galectin inhibitor development. The data generated to date suggests that Galecto’s TD139 has a highly competitive profile in IPF due to its good safety profile and inhaled dosing, providing a clear path to market.”

Chau Khuong, a partner at OrbiMed, added, “We were attracted to Galecto by the excellent science, great promise for its lead inhaled product in IPF, as well as the galectin inhibitor technology platform, which is generating multiple drug candidates.”