Galectin Therapeutics Inc (GALT) Reports Increased Net Loss in Q3 2023
Galectin Therapeutics Inc (NASDAQ:GALT) records a net loss of $14.0 million in Q3 2023, widening from $8.6 million in Q3 2022.
Research and development expenses rose to $7.7 million, reflecting investment in clinical trial programs.
Company secures financial support through warrant exercise and anticipates sufficient funds through December 2024.
On November 13, 2023, Galectin Therapeutics Inc (NASDAQ:GALT) released its 8-K filing, detailing the financial outcomes for the third quarter ended September 30, 2023, and providing updates on its business operations. The company, a leader in the development of therapeutics targeting galectin proteins, reported a net loss applicable to common stockholders of $14.0 million, or ($0.24) per share, a significant increase from the net loss of $8.6 million, or ($0.14) per share, for the same period in the previous year.
Financial Performance and Business Highlights
The net loss includes a one-time, non-cash deemed dividend of $3.6 million related to the modification of certain common stock purchase warrants. The company's net loss from operations also increased by $1.0 million, primarily due to expenses associated with the hiring of additional personnel and activities related to its belapectin program.
Research and development expenses for the quarter were $7.7 million, up from $6.6 million in the prior year, reflecting the company's commitment to advancing its clinical trial program for belapectin. General and administrative expenses slightly decreased to $1.4 million from $1.5 million in the same quarter last year.
As of September 30, 2023, Galectin Therapeutics Inc (NASDAQ:GALT) had cash and cash equivalents of $20.4 million. The company also has access to a $60 million line of credit, with $30 million remaining available, provided by its chairman to fund operations. This financial position is expected to sustain the company's planned operations and research and development activities through at least December 31, 2024.
Operational Developments and Future Outlook
CEO Joel Lewis highlighted the exercise of common stock purchase warrants by Board Chairman Richard E. Uihlein, which brought in $10 million in cash proceeds, and the nomination of Dr. Benjamin S. Carson, Sr. to the Board of Directors as significant events demonstrating confidence in the company's mission.
Chief Medical Officer Dr. Pol Boudes expressed pride in the safety and tolerance profile of belapectin, with some patients having been dosed for 36 months. The company remains on schedule to obtain interim analysis results for the NAVIGATE trial in the fourth quarter of 2023.
Despite the increased net loss, Galectin Therapeutics Inc (NASDAQ:GALT) is making strides in its clinical programs and has secured financial support that positions it to continue its research and development efforts. The company acknowledges the need for additional financing post-December 2024 and is optimistic about obtaining the necessary funds.
Understanding Belapectin and Its Clinical Significance
Belapectin is a complex carbohydrate drug targeting galectin-3, a protein implicated in the progression of NASH to liver cirrhosis and advanced cancers. The NAVIGATE trial, a Phase 2b/3 study evaluating belapectin for the prevention of esophageal varices in NASH cirrhosis, completed patient randomization in February 2023, with top-line data expected in the fourth quarter of 2024.
With no current drug therapies approved for the treatment of liver fibrosis or cirrhosis, Galectin Therapeutics Inc (NASDAQ:GALT)'s development of belapectin represents a significant opportunity in addressing unmet medical needs in chronic liver disease and cancer.
Value investors and potential GuruFocus.com members may find Galectin Therapeutics Inc (NASDAQ:GALT)'s commitment to its clinical programs and the financial backing it has secured to be of particular interest, as the company navigates the challenges of increasing operational costs while advancing its therapeutic pipeline.
Explore the complete 8-K earnings release (here) from Galectin Therapeutics Inc for further details.
This article first appeared on GuruFocus.
