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Galecto raise US$85m in Nasdaq IPO

HBM portfolio company Galecto has raised US$85m through the placement of 5.67 million new shares at a price of US$15 per share at Nasdaq.

The IPO money infusion for the Danish company came just two weeks after Galecto AB had closed a US$64m  Series D round, with a share price of US$15 per share in the mid-point of its range from US$14 – US$16. BofA Securities, SVB Leerink and Credit Suisse acted as join bookrunners on the deal.

Copenhagen-based Galecto AB said it will use the proceeds from its IPO, to advance clinical development of its lead product candidate, GB0139, an inhaled inhibitor of galectin-3 for the treatment of severe fibrotic lung diseases such as idiopathic pulmonary fibrosis (IPF). The company has conducted a Phase IIa trial in 24 IPF patients and has initiated a Phase IIb trial in 450 IPF patients, with topline results expected in 2022.

Galecto’s further focus is on the development of small-molecule inhibitors of lysyl oxidase-like 2, which play key roles in regulating fibrosis. Two programmes of the company are about to enter Phase II for the treatment of NASH and myelofibrosis.

After the IPO, HBM Healthcare Investments holds 1.5 million shares with a total value of USD 22.4 million. As a result of the IPO, the net asset value per HBM share (NAV) increased slightly by CHF 0.59 (+0.2%).