Galecto raises $64m to develop fibrosis and cancer treatments
Galecto, a Danish biotech company, has raised $64 million in an equity financing round, for developing novel treatments for fibrosis and cancer.
Led by Soleus Capital and co-led by Eir Ventures, the funding round is said to strengthen the existing cash balance of Galecto, extending its cash runway into late 2022.
The financing round saw the participation of new investors such as Cormorant Asset Management, Asymmetry Capital Management, Janus Henderson Investors, Hadean Ventures, Sphera, and Canica.
It also included current investors like OrbiMed, Bristol Myers Squibb, Seventure, Ysios Capital, HBM Healthcare Investments, Novo Holdings, Sunstone Capital, and Maverick Ventures.
Galecto said that it plans to use the funds for preparing for possible conditional approval of GB0139 for the treatment of idiopathic pulmonary fibrosis (IPF) in the European Union.
The Danish pharma company will also use the proceeds for further expanding and advancing its clinical development pipeline.
Guy Levy – Managing Member of Soleus Capital said: “We are encouraged by Galecto’s pipeline targeting severe fibrotic diseases, including IPF, and the data generated to date including early signs of GB0139’s potential clinical activity in IPF patients.
“We are excited to partner with a network of leading life science investors to support Galecto in bringing new and innovative therapies to patients.”
Presently, Galecto is carrying out a phase 2b clinical trial of GB0139 in idiopathic pulmonary fibrosis. The Danish biotech company also plans to begin phase 2 clinical studies of GB0139 in liver fibrosis associated with non-alcoholic steatohepatitis (NASH) and GB2064 in myelofibrosis by the end of this year.
Hans Schambye – CEO of Galecto said: “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.”
In October 2018, the Danish pharma company raised €79 million through a Series C financing round co-led by Ysios Capital and OrbiMed for developing galectin modulators for the treatment of severe diseases like idiopathic pulmonary fibrosis, and cancer.