Galectin Therapeutics Inc. (NASDAQ:GALT) Receives ATM Financing

Posted by Ryan Mandell January 13, 2014 0 Comment 1011 views

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.

About Ryan Mandell

Ryan Mandell is our senior staff writer covering the White House for Political Report, Ryan also coordinates with the main newsroom news items and contributing write-ups on cultural, social and political activities. Ryan holds an undergraduate degree in journalism, a Doctorate in international relations and a Master Degree in mass communications with an emphasis in print journalism. Ryan also covered the International Society of Social Defense congress in Spain in 2007 and taken part in the Global Forum on economic policies

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