Galecto Announces Key Additions to Leadership Team

Rhea-AI Summary

Galecto (NASDAQ:GLTO) announced two senior hires: Sherwin Sattarzadeh as Chief Operating Officer and Dr. Becker Hewes as Chief Medical Officer, effective January 5, 2026. The company said DMR-001, a potential best-in-class mutant calreticulin (mutCALR) monoclonal antibody, remains on track for an IND submission in mid-2026 with anticipated first-in-human subcutaneous dosing and Ph1 proof-of-concept data expected in 2027. Galecto reported a cash balance that includes a $285 million PIPE raised in November 2025 and said this funding provides runway into 2029 to support multiple data milestones. The company also disclosed inducement equity grants for both executives on January 5, 2026.

Positive

• $285 million PIPE raised in November 2025
• Cash runway into 2029 to fund multiple milestones
• DMR-001 IND submission targeted for mid-2026
• Ph1 clinical proof-of-concept for DMR-001 anticipated in 2027
• New C-suite hires with hematology/oncology drug development experience

Negative

• Total inducement non-qualified options to purchase 972,812 shares (444,209 + 528,603)
• Total inducement RSUs granted: 455,005 (190,376 + 264,629)

News Market Reaction

+2.73%

1 alert

+2.73% News Effect

+3.5% Peak Tracked

+$1M Valuation Impact

$38M Market Cap

0.1x Rel. Volume

On the day this news was published, GLTO gained 2.73%, reflecting a moderate positive market reaction. Argus tracked a peak move of +3.5% during that session. This price movement added approximately $1M to the company's valuation, bringing the market cap to $38M at that time.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

PIPE financing: $285 million DMR-001 IND timing: Mid-2026 DMR-001 Ph1 PoC: 2027 +5 more

8 metrics

PIPE financing $285 million Raised in November 2025 PIPE, cited as part of cash balance

DMR-001 IND timing Mid-2026 Planned IND submission for mutCALR monoclonal antibody DMR-001

DMR-001 Ph1 PoC 2027 Anticipated Phase 1 clinical proof-of-concept data for DMR-001

Runway guidance Into 2029 Cash balance including PIPE expected to fund operations to 2029

COO RSUs 190,376 RSUs Restricted stock units granted to Sherwin Sattarzadeh on Jan 5, 2026

COO options 444,209 options Non-qualified stock options granted to Sherwin Sattarzadeh

CMO RSUs 264,629 RSUs Restricted stock units granted to Dr. Becker Hewes

Option exercise price $21.82 per share Exercise price for inducement stock options granted Jan 5, 2026

Market Reality Check

Price: $24.98 Vol: Volume 37,985 is below 20...

low vol

$24.98 Last Close

Volume Volume 37,985 is below 20-day average 98,966 (relative volume 0.38x) ahead of this leadership news. low

Technical Shares at $21.26 are trading above the 200-day MA of $7.96, despite being 44.53% below the 52-week high and well above the $2.01 52-week low.

Peers on Argus

GLTO fell 2.57% while close biotech peers were mixed: QLGN up 7.72%, SLXN up 13....

GLTO fell 2.57% while close biotech peers were mixed: QLGN up 7.72%, SLXN up 13.99%, ENTO down 5.68%, BDRX down 1.57%, TOVX down 7.2%, indicating a stock-specific reaction to the leadership and equity grant news.

Historical Context

5 past events · Latest: Dec 16 (Neutral)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Dec 16	Inducement grant	Neutral	-5.1%	Equity options granted to a new employee under the 2022 Inducement Plan.
Nov 10	Acquisition/financing	Positive	+248.5%	Acquisition of Damora and large private placement funding for DMR-001 program.
Nov 06	Earnings update	Neutral	-2.0%	Q3 2025 results with modest cash and plans for GB3226 IND in Q1 2026.
Nov 03	Conference preview	Positive	-8.5%	Announcement of GB3226 preclinical data and plans at the ASH 2025 meeting.
Aug 05	Earnings/conference	Neutral	+0.0%	Q2 2025 results and GB3226 development plans with funding into 2026.

Pattern Detected

Recent history shows a very strong positive reaction to the Damora acquisition/PIPE, but neutral-to-negative reactions around other operational or conference updates and inducement grants.

Recent Company History

Over the last six months, Galecto’s key events included Q2 and Q3 2025 results, an ASH 2025 GB3226 data preview, and multiple inducement grants under Nasdaq Listing Rule 5635(c)(4). The pivotal catalyst was the Nov 10, 2025 Damora acquisition and roughly $284.9M financing, which drove a 248.48% move and refocused the pipeline on mutCALR antibodies like DMR-001 and GB3226. Today’s leadership appointments and related inducement grants extend that post-acquisition build-out of the oncology franchise.

Regulatory & Risk Context

Active S-3 Shelf

Shelf Active

Active S-3 Shelf Registration 2025-12-16

An effective S-3 filed on 2025-12-16 registers 60,513,309 existing-shareholder resale shares tied to prior Damora and PIPE transactions. Galecto will not sell shares or receive proceeds from these resales, so the shelf relates to liquidity for current holders rather than primary capital raising.

Market Pulse Summary

This announcement expands Galecto’s leadership bench with hematology/oncology veterans and reiterate...

Analysis

This announcement expands Galecto’s leadership bench with hematology/oncology veterans and reiterates timelines for DMR-001, including an IND in mid-2026 and proof-of-concept data in 2027, supported by cash runway into 2029. The sizable RSU and option inducement grants align with past use of equity incentives. Investors may watch execution on clinical milestones, the impact of registered resale shares, and how the strengthened team advances the mutCALR and GB3226 programs.

Key Terms

mutant calreticulin, myeloproliferative neoplasms, monoclonal antibody, first-in-human, +4 more

8 terms

mutant calreticulin medical

"blood cancers, including mutant calreticulin (“mutCALR”) myeloproliferative"

Mutant calreticulin is an abnormal version of a normal cellular protein caused by a change in the gene that makes it; think of it as a misprinted recipe that produces a different ingredient. It is important to investors because this abnormal protein is a known marker and driver in certain blood cancers, guiding diagnostic tests, prognosis, and the development or commercial potential of targeted therapies and companion diagnostics.

myeloproliferative neoplasms medical

"including mutant calreticulin (“mutCALR”) myeloproliferative neoplasms (“MPN”)"

Myeloproliferative neoplasms are a group of blood cancers caused by the bone marrow producing too many of one or more types of blood cells, which can crowd out normal cells and impair blood flow. Investors pay attention because these conditions create clear medical needs and predictable markets for diagnostics, therapies and follow-up care—similar to a failing factory that creates demand for repair services and replacement parts—affecting drug development, regulatory milestones and potential sales.

monoclonal antibody medical

"mutCALR targeting monoclonal antibody, on track for IND submission"

A monoclonal antibody is a laboratory-made protein designed to recognize and attach to a specific target in the body, such as a disease-causing substance or cell. It functions like a highly precise lock-and-key tool, helping to treat or detect illnesses. For investors, companies developing monoclonal antibodies can represent promising opportunities in the healthcare sector, especially as these treatments often address unmet medical needs.

first-in-human medical

"anticipated first-in-human dosing via subcutaneous administration"

A first-in-human study is the initial test of a new drug, medical device, or therapy in people to check safety, side effects and appropriate dosing. It matters to investors because it marks a major development milestone: successful early human testing can reduce scientific and regulatory uncertainty, much like moving a prototype from the workshop to a real-world test drive, and often affects a company’s valuation and funding prospects.

subcutaneous administration medical

"first-in-human dosing via subcutaneous administration"

Subcutaneous administration is delivering a drug by injection into the layer of tissue just under the skin, like placing a tiny reservoir beneath the surface with a short needle. For investors, this matters because how a medicine is given affects patient convenience, adherence, manufacturing and packaging needs, and potential market size—treatments that are easier or safer to administer often sell better and face different regulatory and cost considerations.

restricted stock units financial

"approved the grant of 190,376 restricted stock units (“RSUs”)"

Restricted stock units are a type of company reward where employees are promised shares of stock, but they only fully own these shares after meeting certain conditions, like staying with the company for a set time. They matter because they can become valuable assets and are often used to motivate employees to help the company succeed.

non-qualified stock options financial

"RSUs and non-qualified stock options to purchase 444,209 shares"

Non-qualified stock options are a type of employee benefit that gives individuals the right to buy company shares at a set price, usually lower than the market value, within a certain period. Unlike other options that may have special tax advantages, these options are taxed as income when exercised, which can affect how much money the employee or investor ultimately gains. They are important because they can influence company compensation strategies and impact the financial outcomes for employees and investors.

Nasdaq Listing Rule 5635(c)(4) regulatory

"material to each individual entering into employment with the Company in accordance with Nasdaq Listing Rule 5635(c)(4)."

NASDAQ Listing Rule 5635(c)(4) is a rule that requires a company to get approval from its shareholders before selling a large amount of its shares, usually over 20%. This helps protect investors by making sure the company doesn't flood the market with new shares without their say, which could lower the stock's value.

AI-generated analysis. Not financial advice.

Deep hematology/oncology drug development experience added with the appointment of Sherwin Sattarzadeh as Chief Operating Officer and Becker Hewes as Chief Medical Officer

DMR-001, a potentially best-in-class mutant calreticulin (“mutCALR”) targeting monoclonal antibody, on track for IND submission in mid-2026 with anticipated first-in-human dosing via subcutaneous administration

Cash balance, including $285 million raised in November 2025 PIPE, provides financial runway into 2029 to support multiple data milestones, including Ph1 clinical proof-of-concept data for DMR-001 anticipated in 2027

BOSTON, Jan. 06, 2026 (GLOBE NEWSWIRE) -- Galecto, Inc. (“Galecto” or the “Company”), a biotechnology company developing novel therapeutics to redefine the treatment paradigm for people living with blood cancers, including mutant calreticulin (“mutCALR”) myeloproliferative neoplasms (“MPN”), today announced the appointment of Sherwin Sattarzadeh, former Chief Business Officer of Blueprint Medicines Corporation (“Blueprint Medicines”), as Chief Operating Officer and Dr. Becker Hewes, former Chief Medical Officer of Blueprint Medicines, as Chief Medical Officer, effective January 5, 2026.

“We are thrilled to welcome leaders of Sherwin and Becker’s caliber to the executive team at Galecto,” said Hans Schambye, Ph.D., Chief Executive Officer of Galecto. “Their extensive experience in drug development and new product launches, combined with their proven leadership, will be critical as we advance DMR-001 into clinical trials later this year. With our strengthened executive team, Galecto is well-positioned to rapidly advance our pipeline and deliver transformational therapies to patients in need of new and improved treatment options.”

Sherwin Sattarzadeh brings over 20 years of industry experience across the many facets and stages of drug development and company lifecycle. Most recently, he served as Chief Business Officer at Blueprint Medicines. During his 10 years at Blueprint Medicines, Mr. Sattarzadeh held positions of increasing responsibility including Head of Regulatory Affairs, Chief of Staff, and SVP Strategic Operations. He has an extensive background in hematology/oncology and rare disease drug development, having led and contributed to the global approvals of AYVAKIT^® (avapritinib), GAVRETO^® (pralsetinib), CERDELGA^® (eliglustat) and MOZOBIL^® (plerixafor). Mr. Sattarzadeh received his M.B.A. from Boston University and holds a B.Sc. in Chemistry from the University of British Columbia.

Dr. Becker Hewes brings over two decades of experience in drug development in public biotechnology companies. Most recently, he served as Chief Medical Officer at Blueprint Medicines. During his time at Blueprint Medicines, Dr. Hewes led the development of an industry-leading pipeline across mast cell disorders and solid tumors, including the approval of AYVAKIT (avapritinib) for indolent and advanced systemic mastocytosis. Prior to joining Blueprint Medicines, Dr. Hewes had an illustrious career in hematology/oncology drug development, having led clinical development and translational medicine efforts for multiple early-stage oncology programs through clinical proof-of-concept, including Kisqali^® (ribociclib), as well as leading registration programs for Bosulif^® (bosutinib), and Torisel^® (temsirolimus). He received his BS from Vanderbilt University and an M.D. from Georgetown University. He completed his residency at New York Hospital/Cornell Medical Center and his fellowship training in Pediatric Oncology at Emory University.

In connection with Mr. Sattarzadeh’s appointment as Chief Operating Officer, the Company’s Compensation Committee approved the grant of 190,376 restricted stock units (“RSUs”) and non-qualified stock options to purchase 444,209 shares of the Company’s common stock to Mr. Sattarzadeh (the “Sattarzadeh Inducement Grants”) on January 5, 2026 (the “Grant Date”). In connection with Dr. Hewes’ appointment as Chief Medical Officer, the Company’s Compensation Committee approved the grant of 264,629 RSUs and non-qualified stock options to purchase 528,603 shares of the Company’s common stock to Dr. Hewes (the “Hewes Inducement Grants” and together with the Sattarzadeh Inducement Grants, the “Inducement Grants”) on the Grant Date.

The Inducement Grants were granted pursuant to the Company’s 2022 Inducement Plan, as amended from time to time, and were granted as an inducement material to each individual entering into employment with the Company in accordance with Nasdaq Listing Rule 5635(c)(4). The non-qualified stock options have an exercise price per share equal to $21.82 and will vest (i) with respect to 25% on the first anniversary of the Grant Date and (ii) thereafter, with respect to an additional 1/48th on each monthly anniversary of the Grant Date following the first anniversary of the Grant Date, subject to the applicable employee’s continued employment with the Company through the applicable vesting dates. The RSUs will vest annually over four years on each anniversary of the Grant Date, subject to the applicable employee’s continued employment with the Company through the applicable vesting dates.

About DMR-001
DMR-001 is a potentially best-in-class anti-mutCALR monoclonal antibody demonstrated to have highly potent activity in both Type 1 and Type 2 mutCALR-driven preclinical models, supporting its potential to address the full spectrum of CALR mutations in both essential thrombocythemia (“ET”) and myelofibrosis (“MF”). DMR-001 is engineered with validated half-life extension technology to enable infrequent low-volume, subcutaneous dosing to maximize target coverage and patient convenience. An Investigational New Drug application (“IND”), or equivalent, submission for DMR-001, with anticipated first-in-human dosing via subcutaneous administration, is expected to occur in mid-2026.

About Galecto, Inc.
Galecto, Inc. is a clinical-stage biotechnology company advancing a pipeline of antibody therapeutics to transform treatment of a broad spectrum of hematological cancers. Galecto’s pipeline includes a highly differentiated mutCALR-driven myeloproliferative neoplasm portfolio targeting essential thrombocythemia and myelofibrosis. The Company expects to submit an IND or equivalent filing for its lead asset, DMR-001, a potentially best-in-class, subcutaneously administered monoclonal antibody targeting mutCALR, in mid-2026. Galecto’s pipeline also includes GB3226, a first-in-class preclinical dual inhibitor of ENL-YEATS and FLT3 for the treatment of multiple genetic subsets of acute myeloid leukemia. For regular updates about Galecto, visit www.galecto.com.

Forward-Looking Statements
Certain statements in this press release, other than purely historical information, may constitute “forward-looking statements” within the meaning of the federal securities laws, including for purposes of the safe harbor provisions under the United States Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, express or implied statements relating to the Company’s expectations, hopes, beliefs, intentions or strategies regarding the future of its assets, pipeline and business including, without limitation, the timing for an IND submission for DMR-001, the expected method of administration for DMR-001, the expected timing for Phase 1 data for DMR-001 and the length of time that the Company believes its existing cash resources will fund its operations. In addition, any statements that refer to projections, forecasts or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. These forward-looking statements are based on current expectations and beliefs concerning future developments and their potential effects. There can be no assurance that future developments affecting the combined company will be those that have been anticipated. These forward-looking statements involve a number of risks, uncertainties (some of which are beyond the combined company’s control) or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements. These risks and uncertainties include, but are not limited to, those uncertainties and factors described under the headings “Risk Factors,” “Cautionary Information Regarding Forward-Looking Statements” or “Cautionary Statement Regarding Forward-Looking Statements” in the Company’s most recent filings with the SEC. Should one or more of these risks or uncertainties materialize, or should any of the Company’s assumptions prove incorrect, actual results may vary in material respects from those projected in these forward-looking statements. Nothing in this press release should be regarded as a representation by any person that the forward-looking statements set forth therein will be achieved or that any of the contemplated results of such forward-looking statements will be achieved. You should not place undue reliance on forward-looking statements in this press release, which speak only as of the date they are made and are qualified in their entirety by reference to the cautionary statements herein. The Company does not undertake or accept any duty to make any updates or revisions to any forward-looking statements.

Media Contact:

Lia Dangelico
Deerfield Group
lia.dangelico@deerfieldgroup.com

Investor Contact:

Brian Ritchie
LifeSci
britchie@lifesciadvisors.com

FAQ

Who did Galecto (GLTO) appoint as Chief Operating Officer and Chief Medical Officer on January 5, 2026?

Galecto appointed Sherwin Sattarzadeh as Chief Operating Officer and Dr. Becker Hewes as Chief Medical Officer effective January 5, 2026.

When is Galecto (GLTO) targeting an IND submission for DMR-001?

Galecto is targeting an IND submission for DMR-001 in mid-2026.

What clinical milestone for DMR-001 does Galecto (GLTO) expect in 2027?

Galecto expects first-in-human dosing and Ph1 clinical proof-of-concept data for DMR-001 in 2027.

How much funding did Galecto (GLTO) raise in November 2025 and how long is the runway?

Galecto raised $285 million in a November 2025 PIPE and stated cash provides runway into 2029.

What equity awards did Galecto (GLTO) grant to the new executives on January 5, 2026?

Galecto granted RSUs of 190,376 and 264,629, plus non-qualified stock options to purchase 444,209 and 528,603 shares to the two hires, respectively.

What is the exercise price and vesting schedule for the inducement stock options at Galecto (GLTO)?

The options have an exercise price of $21.82 and vest 25% after one year, then 1/48th monthly thereafter, subject to continued employment.