Galectin Therapeutics Inc. (NASDAQ:GALT) Receives ATM Financing
Galectin Therapeutics Inc. (NASDAQ:GALT), a developer of therapies for fibrosis and cancer treatment, stock jumped following the success of Intercept Pharmaceuticals’ beticholic acid in a Phase-2 trial. This comes in as positive news for companies which are working on drugs to treat fatty liver disease.
It should be noted that there are no approved drugs for non-alcoholic steato hepatitis, or NASH. It is estimated that about 12% of the U.S. population are suffering from this disease.
Galectin recently announced that it has received a patent for GR-MD-02 which is intended for the treatment of NASH. The patent covers both composition and uses of Galectin’s carbohydrate-based galectin inhibitor GR-MD-02 for use in patients with liver fibrosis in combination with other potential therapeutic agents.
GR-MD-02 is currently in Phase 1 trial for the treatment of NASH with advanced fibrosis. The trial, which is spread over a period of four weeks, will analyse single and multiple doses of GR-MD-02 for evaluating the safety, tolerability and efficacy. Pre-clinical data showed GR-MD-02 to reverse fibrosis and cirrhosis in animal models which could be clinically significant.
Galectin Therapeutics Inc. (NASDAQ:GALT) has also obtained Fast Track Designation from the U.S. Food and Drug Administration (FDA) for the development of GR-MD-02 in August 2013.
The company began enrolling patients in the Phase I trial in July last year and it expects to report top-line results in early 2014. Galectin Therapeutics might begin a Phase-2 clinical study in late 2014 or early 2015 and expects to present top-line data in the first half of 2016. The Phase-2 study, however, will be based on the Phase-1 study results.
In addition, the company also announced that it had sold a total of 2.39 million shares of common stock at $9.99 price per share for total gross proceeds of $23.88 million through its at-the-market financing vehicle. The shares were sold from October 28, 2013 through January 9, 2014.
In October 2013, Galectin Therapeutics entered into an ATM financing arrangement with MLV & Co. LLC. Under the agreement, Galectin got an opportunity to sell up to $30 million in registered shares into the open market through MLV. The company said it will use the net proceeds to fund its GR-MD-02 Phase-2 trial program and will also use the money for general corporate purposes.
Currently, the company has approximately $32.3 million in cash, and there are approximately 20.7 million shares of common stock outstanding.