Galectin Therapeutics secures $10 million credit line from board chairman

NORCROSS, Ga. - Galectin Therapeutics Inc. (NASDAQ:GALT), a clinical-stage biotech company with a market capitalization of $132 million and currently trading at $2.09, has secured a new $10 million unsecured line of credit from its Board Chairman and largest individual stockholder, Richard E. Uihlein, according to a statement released Wednesday. InvestingPro analysis indicates the company faces challenges with short-term obligations exceeding liquid assets, reflected in a current ratio of 0.08.

The new credit facility allows the company to borrow funds at its discretion through April 30, 2026. Advances will bear interest at the Applicable Federal Rate for short-term loans (currently 4.05%) plus 2%, with principal and interest due September 30, 2026. This financing comes as the company’s total debt stands at $108.4 million, with analysts projecting continued losses through 2025.

The promissory notes can be converted into common stock at the closing price on the date of the note, with a minimum conversion price of $3.00 per share. Uihlein will receive up to 200,000 stock purchase warrants proportionally as funds are drawn.

Additionally, maturity dates for Uihlein’s existing $30 million in convertible notes and $81 million in previous credit lines have been extended to September 30, 2026.

"I am committed to ensuring that the Company is funded sufficiently in order to fully evaluate the potential of its MASH cirrhosis program," said Uihlein in the press release statement.

The company expects this financing to cover projected expenditures through June 2026 as it continues development of belapectin, its lead drug candidate for metabolic dysfunction-associated steatohepatitis (MASH) cirrhosis and portal hypertension.

Joel Lewis, CEO and President of Galectin Therapeutics, stated the company is preparing to present data to the FDA this fall and is seeking partnerships for further development and commercialization of belapectin.

Galectin’s belapectin has received Fast Track designation from the FDA and targets the galectin-3 protein involved in inflammatory and fibrotic diseases.

In other recent news, Galectin Therapeutics announced positive results from its NAVIGATE trial, focusing on the efficacy of belapectin in treating metabolic dysfunction-associated steatohepatitis (MASH) cirrhosis and portal hypertension. The trial, which involved 355 patients, revealed a 49.3% reduction in the incidence of new esophageal varices in patients treated with a 2 mg/kg dose of belapectin compared to those on placebo. The study also highlighted a significant reduction in liver stiffness, an indicator of liver fibrosis progression, in the belapectin group. These results were presented at the European Association for the Study of the Liver Congress in Amsterdam. Additionally, H.C. Wainwright initiated coverage of Galectin Therapeutics with a buy rating and a price target of $6.00, citing the potential market opportunity for belapectin. The firm emphasized that belapectin is the only therapy in development for MASH cirrhosis and portal hypertension, addressing a significant unmet need. The safety profile of belapectin was noted as encouraging, with adverse events being comparable to placebo. Galectin’s development program for belapectin has also received Fast Track designation by the U.S. Food and Drug Administration.

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