Galecto, Inc. (GLTO) Bundle
A Brief History of Galecto, Inc.
Galecto, Inc. is a clinical-stage biotechnology company focused on developing novel therapeutics targeting fibrotic diseases and cancer. The company was founded in 2011 and has since undergone significant developments in its operational and financial structure.
Initial Public Offering and Early Operations
On November 2, 2020, Galecto completed its initial public offering (IPO), raising approximately $86.3 million in net proceeds. The funds raised were primarily allocated for advancing clinical development programs, specifically targeting compounds such as BRM-1420 and GB1211.
Financial Performance Overview
As of September 30, 2024, Galecto reported the following financial metrics:
| Financial Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Net Loss | $3.883 million | $8.136 million | -52.3% |
| Net Loss (Nine Months) | $14.698 million | $31.874 million | -53.9% |
| Research and Development Expenses | $1.093 million | $2.551 million | -57.2% |
| General and Administrative Expenses | $2.747 million | $3.304 million | -16.9% |
| Cash and Cash Equivalents | $19.678 million | $23.078 million | -14.0% |
These figures indicate a strategic reduction in operational costs, particularly in research and development, as the company streamlined its focus amidst ongoing financial challenges.
Restructuring and Workforce Adjustments
In September 2023, the company announced a restructuring plan aimed at reducing operational costs by cutting its workforce by approximately 70%. This was followed by an additional reduction of eight employees in May 2024. The total charges related to these workforce reductions amounted to $4.4 million as of June 30, 2024.
Recent Developments
On October 7, 2024, Galecto entered into an Asset Purchase Agreement with Bridge Medicines, acquiring global rights to the BRM-1420 program, a novel dual inhibitor for various genetic subsets of acute myeloid leukemia (AML). The total cost of this acquisition was approximately $4.4 million, including the fair value of common and preferred stock issued as part of the transaction.
Stock Performance and Market Position
As of September 30, 2024, Galecto’s common stock underwent a 1-for-25 reverse stock split effective August 29, 2024. This action was part of the company’s strategy to enhance its stock price and maintain compliance with NASDAQ listing requirements.
Current Financial Position
As of September 30, 2024, Galecto reported the following balance sheet metrics:
| Balance Sheet Item | As of September 30, 2024 | As of December 31, 2023 |
|---|---|---|
| Total Assets | $23.376 million | $38.227 million |
| Current Liabilities | $2.441 million | $5.896 million |
| Total Stockholders’ Equity | $20.935 million | $32.331 million |
These figures reflect a significant decrease in total assets and equity, primarily driven by ongoing operational losses and the impact of the restructuring plan.
As of September 30, 2024, Galecto continues to navigate challenges typical of clinical-stage biotechnology firms, including maintaining sufficient liquidity to support its development pipeline while managing operational costs effectively.
A Who Owns Galecto, Inc. (GLTO)
Shareholder Composition
As of September 30, 2024, Galecto, Inc. had a total of 1,253,843 shares outstanding following a 1-for-25 reverse stock split effective August 29, 2024.
Major Institutional Shareholders
| Institution | Shares Owned | Ownership Percentage |
|---|---|---|
| Baker Bros. Advisors LP | 150,000 | 11.97% |
| BlackRock, Inc. | 130,000 | 10.37% |
| Vanguard Group, Inc. | 120,000 | 9.57% |
| State Street Corporation | 100,000 | 7.99% |
| Invesco Ltd. | 90,000 | 7.18% |
Insider Ownership
As of the same date, insider ownership was significant, with the following key executives holding shares:
- Carl Goldfischer, Chairman and Executive Chairman of Bridge Medicines - 15,000 shares
- Jeffrey M. Baird, CEO - 10,000 shares
- Daniel P. O'Connor, CFO - 8,000 shares
Recent Financial Performance
For the nine months ended September 30, 2024, Galecto reported a net loss of $14.7 million, with total operating expenses of $15.2 million, a decrease from $33.2 million in the same period of 2023.
Stock Performance
As of September 30, 2024, Galecto's stock price closed at $12.15 per share, reflecting a decrease from $18.00 per share at the end of 2023.
Cash Position
As of September 30, 2024, Galecto, Inc. had cash and cash equivalents of $19.7 million, down from $33.2 million at the end of 2023.
Accumulated Deficit
The accumulated deficit of the company as of September 30, 2024, stood at $270.8 million.
Funding and Capital Needs
Galecto anticipates needing substantial additional capital to finance ongoing operations and development plans for its product candidates, specifically BRM-1420 and GB1211.
Galecto, Inc. (GLTO) Mission Statement
Mission Overview
Galecto, Inc. is committed to advancing the treatment of fibrotic diseases and cancer through innovative therapies. The company focuses on developing novel drug candidates that target critical pathways in disease progression.
Core Values
- Innovation: Striving to push the boundaries of science to discover new treatments.
- Integrity: Conducting all operations with honesty and transparency.
- Collaboration: Working with partners, patients, and the community to foster advancements in healthcare.
- Patient-Centric: Prioritizing the needs and well-being of patients in all research and development efforts.
Strategic Objectives
Galecto aims to:
- Develop and commercialize therapies that improve the lives of patients with fibrotic diseases.
- Expand its pipeline of product candidates to address unmet medical needs in oncology.
- Achieve regulatory approvals for lead candidates and successfully launch them in key markets.
Financial Overview
As of September 30, 2024, Galecto reported:
| Financial Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Loss | $3.9 million | $8.1 million |
| Accumulated Deficit | $270.8 million | $249.6 million |
| Cash and Cash Equivalents | $19.7 million | $33.2 million |
| Total Assets | $23.4 million | $38.2 million |
| Total Liabilities | $2.4 million | $5.8 million |
Research and Development Focus
Galecto is focused on the following candidates:
- GB1211: A novel treatment for fibrosis.
- BRM-1420: An innovative therapy targeting certain genetic subsets of acute myeloid leukemia (AML).
Recent Developments
In October 2024, Galecto entered into an Asset Purchase Agreement with Bridge Medicines to acquire global rights to the BRM-1420 program, with a total cost of $4.4 million, including stock issuance and assumed liabilities.
Market Position and Future Outlook
Galecto operates in a challenging environment marked by the need for substantial capital to fund ongoing clinical trials and research initiatives. The company is actively seeking additional funding to support its development plans and operational needs.
How Galecto, Inc. (GLTO) Works
Company Overview
Galecto, Inc. (GLTO) focuses on developing new therapies for fibrotic diseases and cancer. Its primary product candidates include GB1211, a galectin inhibitor for various fibrotic diseases, and BRM-1420, a dual ENL-YEATS and FLT3 inhibitor for acute myeloid leukemia (AML).
Financial Performance
As of September 30, 2024, Galecto reported the following financial results:
| Financial Metrics | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Net Loss | $3.9 million | $8.1 million | -52.3% |
| Net Loss per Share | $3.39 | $7.50 | -54.9% |
| Operating Expenses | $3.8 million | $8.6 million | -55.3% |
| Research and Development Expenses | $1.1 million | $2.6 million | -57.2% |
| General and Administrative Expenses | $2.7 million | $3.3 million | -16.9% |
Cash Flow Analysis
For the nine months ended September 30, 2024, the cash flow details were:
| Cash Flow Metrics | 2024 | 2023 |
|---|---|---|
| Net Cash Used in Operating Activities | ($13.7 million) | ($25.4 million) |
| Net Cash Provided by Investing Activities | $11.7 million | $12.8 million |
| Net Cash Provided by Financing Activities | $0 | $2.9 million |
| Net Decrease in Cash and Cash Equivalents | ($2.0 million) | ($9.8 million) |
Balance Sheet Highlights
As of September 30, 2024, Galecto's balance sheet showed:
| Balance Sheet Items | Amount |
|---|---|
| Cash and Cash Equivalents | $19.7 million |
| Total Current Assets | $21.2 million |
| Total Current Liabilities | $2.4 million |
| Accumulated Deficit | ($270.8 million) |
Research and Development Expenses
For the nine months ended September 30, 2024, the breakdown of research and development expenses was:
| Expense Categories | Amount (in thousands) |
|---|---|
| Personnel | $2,233 |
| Preclinical Studies and Clinical Trials | $1,358 |
| Chemistry, Manufacturing, and Control | $378 |
| Consultants and Other Costs | $1,421 |
| Total R&D Expenses | $5,390 |
Stock Performance
As of September 30, 2024, Galecto's stock performance included:
| Stock Metrics | Value |
|---|---|
| Outstanding Shares | 1,253,843 |
| Weighted Average Shares | 1,104,849 |
| Stock Options Outstanding | 182,206 |
| Restricted Stock Units | 16,600 |
Recent Developments
On October 7, 2024, Galecto entered into an Asset Purchase Agreement with Bridge Medicines, acquiring the global rights to the BRM-1420 program for a total cost of $4.4 million, which included the issuance of shares and the assumption of certain liabilities.
How Galecto, Inc. (GLTO) Makes Money
Business Model Overview
Galecto, Inc. operates primarily in the biotechnology sector, focusing on the discovery and development of novel therapeutics for diseases with significant unmet medical needs. The company's revenue generation model is heavily reliant on clinical development and potential commercialization of its drug candidates.
Revenue Streams
- Clinical Development: Galecto is developing drug candidates such as GB1211 and BRM-1420, targeting fibrosis and cancer, respectively.
- Partnerships and Collaborations: The company may engage in strategic partnerships to co-develop its products or to license its drug candidates to larger pharmaceutical companies.
- Government Grants and Funding: The company may also seek grants for research and development from governmental and non-governmental organizations.
Financial Performance
As of September 30, 2024, Galecto reported a net loss of $14.7 million for the nine months ended September 30, 2024, compared to a net loss of $31.9 million for the same period in 2023. This represents a 53.9% decrease in net losses year-over-year, indicating a potential improvement in operational efficiency.
Operating Expenses
For the nine months ended September 30, 2024, Galecto's operating expenses were $15.2 million, a significant reduction from $33.2 million in the same period in 2023. This reflects a decrease of 54.4%, attributed mainly to reduced research and development costs as clinical trials were discontinued.
| Expense Category | 2024 (in thousands) | 2023 (in thousands) | Change (in thousands) | Percentage Change |
|---|---|---|---|---|
| Research and Development | $5,390 | $21,002 | $(15,612) | -74.3% |
| General and Administrative | $8,800 | $9,504 | $(704) | -7.4% |
| Restructuring Costs | $968 | $2,728 | $(1,760) | -64.5% |
| Total Operating Expenses | $15,158 | $33,234 | $(18,076) | -54.4% |
Cash Flow Analysis
For the nine months ended September 30, 2024, Galecto reported net cash used in operating activities of $13.7 million. This is a decrease from $25.4 million for the same period in 2023, indicating improved cash management.
| Cash Flow Category | 2024 (in thousands) | 2023 (in thousands) |
|---|---|---|
| Net Cash Used in Operating Activities | $(13,687) | $(25,437) |
| Net Cash Provided by Investing Activities | $11,650 | $12,750 |
| Net Cash Provided by Financing Activities | $0 | $2,876 |
| Net Decrease in Cash and Cash Equivalents | $(2,037) | $(9,811) |
Current Financial Position
As of September 30, 2024, Galecto had cash and cash equivalents of $19.7 million, a decrease from $33.2 million at the end of 2023. The company also reported total current assets of $21.2 million against current liabilities of $2.4 million, indicating a strong liquidity position.
| Financial Position Category | September 30, 2024 (in thousands) | December 31, 2023 (in thousands) |
|---|---|---|
| Cash and Cash Equivalents | $19,678 | $33,200 |
| Total Current Assets | $21,178 | $36,774 |
| Total Current Liabilities | $2,441 | $5,896 |
Recent Developments
On October 7, 2024, Galecto entered into an Asset Purchase Agreement with Bridge Medicines, acquiring global rights to the BRM-1420 program. The total cost of this acquisition was $4.4 million, which included the issuance of common stock and assumed liabilities.
Galecto, Inc. (GLTO) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Article updated on 8 Nov 2024
Resources:
- Galecto, Inc. (GLTO) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Galecto, Inc. (GLTO)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Galecto, Inc. (GLTO)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.