Galecto Reports First Quarter Financial Results and Provides a Corporate Update
05/04/2021 - 08:30 AM
BOSTON, May 04, 2021 (GLOBE NEWSWIRE) -- Galecto, Inc. (NASDAQ: GLTO), a clinical stage biotechnology company focused on the development of novel treatments for fibrosis and cancer, today announced its operating and financial results for the period ended March 31, 2021 and provided a corporate update.
“The first quarter was one of continued focus on our pipeline, as we look forward to initiating three Phase 2 trials this year and continue building upon our strategy,” said Hans Schambye, CEO of Galecto. “As we evaluate and modify our ongoing GALACTIC-1 Phase 2b trial of GB0139 in IPF, we established additional validation of our platform, specifically the role of galectin-3 and its potential in new cancer indications, in a paper published in a peer-reviewed journal Gastric Cancer . The planned clinical study in non-small cell lung cancer (NSCLC) with our oral galectin-3 inhibitor GB 1211 is very exciting and we are pleased to have a balance sheet supporting development in these meaningful indications.”
Recent Highlights & Developments
Published a paper in Gastric Cancer, a joint official peer-reviewed journal of the International gastric Cancer Association and the Japanese Gastric Cancer Association. Announced plans to work with both study investigators and appropriate regulatory authorities to modify and continue the GALACTIC-1 Phase 2b trial following the recommendation from a data safety monitoring board, maintaining our opportunity to demonstrate an effect in the treatment of IPF. We continue to believe that GB0139 is well positioned to address a significant unmet need for a safer and more efficacious treatment. Hosted a well-attended Key Opinion Leader event discussing the current treatment landscape for IPF, the unmet clinical need, and the potential for GB0139. To access a recording of the event please visit the Event page on the Investor tab on Galecto’s website or follow this link: https://ir.galecto.com/news-and-events/events Expected Upcoming Milestones
COVID data in early Q2 2021 Completion of enrollment in GALACTIC-1 Phase 2b clinical trial in IPF patients in 2H 2021 Initiation of enrollment in three Phase 2 trials: MYLOX-1 trial (myelofibrosis) in 1H 2021 GALLANT-1 trial (NSCLC) in 2H 2021 GULLIVER-2 trial (liver cirrhosis) in 2H 2021 Three Months Ended March 31, 2021 Financial Highlights $149 million . We currently expect that our cash and cash equivalents will be sufficient to fund our operating expenses and capital requirements into 2024.
Research and development expenses were $10.0 million for the three months ended March 31, 2021, compared to $4.7 million for the three months ended March 31, 2020. The increase of $5.3 million was due primarily to increased clinical spending associated with the GALACTIC-1 study.
General and administrative expenses were $3.6 million for the three months ended March 31, 2021, compared to $1.1 million for the three months ended March 31, 2020. The increase of $2.5 million was primarily related to public company costs and non-cash stock-based compensation.
Net loss attributable to common stockholders for the three months ended March 31, 2021 was $13.3 million , or $(0.53) per basic and diluted share, compared with $5.7 million , or $(21.83) per basic and diluted share, for the prior year period.
About Galecto
Galecto intends to use its website as a means of disclosing material non-public information. For regular updates about Galecto, visit www.galecto.com .
Forward-Looking Statements
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GALECTO, INC. Condensed Consolidated Balance Sheets (in thousands)
March 31, December 31, 2021 2020 (unaudited) Cash and cash equivalents $ 74,253 $ 163,582 Marketable securities 36,081 — Prepaid expenses and other current assets 6,568 5,713 Marketable securities, long-term 38,576 — Operating lease right-of-use assets 933 885 Other assets 2,244 1,416 Total assets $ 158,655 $ 171,596 Current liabilities $ 5,540 $ 5,566 Operating lease liabilities, noncurrent 544 541 Total liabilities 6,084 6,107 Total stockholders’ equity 152,571 165,489 Total liabilities and stockholders' equity $ 158,655 $ 171,596
Condensed Consolidated Statements of Operations and Comprehensive Loss (in thousands, except share and per share amounts) (unaudited)
Three Months Ended March 31, 2021 2020 Operating expenses: Research and development $ 9,990 $ 4,707 General and administrative 3,562 1,123 Total operating expenses 13,552 5,830 Loss from operations (13,552 ) (5,830 ) Total other income (expense), net 207 156 Net loss (13,345 ) (5,674 ) Net loss per common share, basic and diluted $ (0.53 ) $ (21.83 ) Weighted-average number of shares used in computing net loss per common share, basic and diluted 25,261,832 259,966 Other comprehensive loss: Net loss (13,345 ) (5,674 ) Currency translation loss (524 ) (210 ) Unrealized loss on marketable securities (80 ) — Total comprehensive loss $ (13,949 ) $ (5,884 )
