Galecto Biotech raises €79 Million in Series C Financing
Novo Seeds invest €12.5 million into Galecto to become the largest shareholder
Galecto Biotech AB, the leading developer of galectin modulators for the treatment of severe diseases, including fibrosis and cancer, has successfully closed a €79 million series C financing round.
Galecto focuses on the development of novel therapeutics, targeting diseases with a high unmet medical need. The company has developed a pipeline of drugs targeting galectin biology, initially focused on galectin-3.
Galectin-3 has been implicated in diseases of the lung, liver, eye and cardiovascular system amongst others where it can promote the development of tissue scarring (fibrosis) and inflammation.
The closing of the €79 million financing round is a milestone for the company, as they are now aiming to quickly take TD139 into the Phase 2/3 study, following design approval from the FDA and MHRA.
The €79 million financing will find the Phase 2/3 study of TD139 and clinical studies for two galectin modulator programs.
The funding will also further new developments for the company. CEO of Galecto, Hand Schambye said “the financing will also enable clinical studies for two additional programs, which are based on galectin modulators optimised for dosing in fibrotic diseases of other organs, such as the liver and eye.”
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Continued investment and support from Novo Seeds
As part of the financing, Novo Seeds, the early stage investment arm of Novo Holdings, invested €12.5 million, including a convertible loan, becoming the largest shareholder in Galecto.
Stephan Christgau, Senior Partner of Novo Seeds and board member of Galecto, said “Novo Seeds’ strategy is to identify, build and invest in innovative startup companies founded on strong science, with the ultimate goal of developing products that can transform patient treatment. “
Galecto was first funded through the pre-seed grant programme of the Novo Nordisk Foundation in 2010. Novo Seeds also led the first seed investment round for the company in 2011.
Christgau spoke further to this long-standing relationship, “As the original incubators and first investor in Galecto, we believe that Galecto’s galectin biology has the potential to open new treatment possibilities for many patients, including those with organ fibrosis and cancer.”
"Galecto's galectin biology has the potential to open new treatment possibilities for many patients"
In addition to Novo Seeds, existing investors M Ventures, and Sunstone Capital also participated in the round. The Series C financing was co-led by Ysios Capital and OrbiMed. New investors Ysios Capital, OrbiMed, HBM Healthcare Investments, OrbiMed Israel, Bristol Myers-Squibb, Maverick Ventures and Seventure Partners joined the round.