Elicio secures $10 million to extend cash runway

BOSTON - Elicio Therapeutics, Inc. (NASDAQ:ELTX), a biotech firm focusing on novel cancer immunotherapies, announced on Wednesday it has secured a $10 million senior secured promissory note with GKCC, LLC. The funding, combined with the company’s existing cash, is expected to sustain operations into the first quarter of 2026, which includes the period for the anticipated interim analysis of the AMPLIFY-7P Phase 2 study in Q3 2025. According to InvestingPro data, while Elicio maintains more cash than debt on its balance sheet, the company has been quickly burning through its cash reserves. With a current market capitalization of $129 million, analysts have set price targets ranging from $10 to $12 per share.

The note, which matures on June 3, 2028, carries an interest rate of up to 12.5% and includes a 24-month interest-only period. The initial 12 months of accrued interest is payable in a lump sum beginning on the thirteenth month after the closing of the financing. In addition, Elicio issued warrants for GKCC to purchase 103,225 shares of common stock at $7.75 per share, exercisable immediately and expiring five years from the date of issuance. The stock has shown strong momentum, with a nearly 60% price return over the past six months. InvestingPro analysis indicates the stock is currently trading above its Fair Value, with additional insights available to subscribers.

Robert Connelly, CEO of Elicio, stated that the transaction fortifies the company’s balance sheet and provides flexibility for upcoming corporate and business development initiatives. He also highlighted the interest from clinical investigators in evaluating ELI-002, Elicio’s lead product candidate, in combination regimens for pancreatic ductal adenocarcinoma (PDAC) and colorectal cancer.

Elicio’s ELI-002 is an off-the-shelf vaccine candidate targeting KRAS mutations, which are present in approximately 25% of all solid tumors. The company aims to capitalize on recent clinical successes in personalized cancer vaccines to develop more accessible, off-the-shelf options. ELI-002 is currently undergoing a randomized clinical trial for mKRAS-positive pancreatic cancer patients at high risk of relapse.

Updated Phase 1 data for ELI-002, presented at the ESMO Immuno-Oncology Congress 2024, showed a median recurrence-free survival of 16.3 months and median overall survival of 28.9 months for the study population. Elicio plans to expand the use of ELI-002 to other mKRAS positive cancers in the future.

The company’s proprietary Amphiphile (AMP) technology is designed to deliver immunotherapeutics directly to the lymph nodes, potentially resulting in stronger and more durable immune responses compared to conventional vaccines.

This funding news is based on a press release statement and reflects the company’s expectations and forward-looking statements subject to risks and uncertainties. These include the company’s financial condition, the development and commercialization of ELI-002, and the timing and outcome of clinical trials. InvestingPro data reveals the company’s current financial health score is rated as ’FAIR’, with analysts not anticipating profitability this year. Subscribers can access 8 additional ProTips and comprehensive financial metrics to better assess the investment opportunity.

In other recent news, Elicio Therapeutics has made significant announcements that could impact its strategic direction. The company recently held its annual stockholders meeting, where two directors, Karen Wilson and Robert R. Ruffolo, Jr., were elected to the Board of Directors with a substantial majority. Additionally, the appointment of Baker Tilly US, LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2025, was ratified by stockholders. In another development, Elicio Therapeutics appointed Preetam Shah, Ph.D., MBA, as its Chief Strategy and Financial Officer. Dr. Shah’s extensive experience in biotechnology finance and strategy is expected to be beneficial as the company advances its clinical trials, particularly the Phase 2 AMPLIFY-7P study of its immunotherapy candidate, ELI-002. Elicio’s President and CEO, Robert Connelly, Ph.D., has expressed confidence in Dr. Shah’s ability to align financial strategies with the company’s mission. These developments come as Elicio continues to focus on its proprietary Amphiphile platform and the potential of ELI-002, a cancer vaccine targeting KRAS mutations. The company’s commitment to advancing its pipeline of cancer vaccines remains a priority.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.