Galecto Laying Off 70% of Staff and Exploring Strategic Alternatives after Failed Lung Disease Drug Trial
September 27, 2023
Boston-based biotech firm Galecto plans to lay off 29 employees, approximately 70% of its workforce, after its lung disease drug candidate GB0139 failed in a phase IIb trial. Following the unsuccessful trial and predicted resource changes hinted at in mid-August, Galecto is now pursuing strategic alternatives such as mergers, acquisitions, or divestitures to extend its cash runway to 2025. The company’s cash and investments totaled $52.1 million as of 30th June, but the failure of GB0139 has left Galecto in a precarious financial position. As a result of the news, the company’s stock price dropped by 68%, although it did rebound by 28% after the announcement. Galecto aims to raise additional funds and shift its focus to severe liver disease.
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[Source: Endpoints News, September 27th, 2023]
