US-based fibrosis and cancer therapy developer Galecto has filed to raise up to $100m initial public offering that would provide exits for pharmaceutical firms Merck Group, Bristol Myers-Squibb (BMS) and Novo.
Galecto is working on small molecule therapeutics for diseases such as cancer and fibrosis, a condition where connective tissue becomes scarred.
The IPO proceeds will fund development of the company’s lead product candidate, GB0139, with some cash going to a phase 3 clinical trial in idiopathic pulmonary fibrosis, which affects the lungs.
The offering will also fund development of treatments for cancer, including a form of bone marrow cancer known myelofibrosis, as well as non-alcoholic fatty liver disease.
Novo and BMS both took part in a $64m round Galecto closed last month that was co-led by Soleus Capital and Eir Ventures.
OrbiMed, Ysios Capital, HBM Healthcare Investments, Cormorant Asset Management, Janus Henderson Investors, Hadean Ventures, Sphera, Asymmetry Capital Management, Canica, Sunstone Capital, Seventure and Maverick Ventures also participated in the round.
Ysios Capital and OrbiMed had led Galecto’s $90m series C round in late 2018, investing alongside Novo subsidiary Novo Seeds, Merck’s M Ventures unit, HBM Healthcare Investments, Maverick Capital, Seventure, Sunstone Capital and OrbiMed Israel.
Novo Seeds and M Ventures (then known as Merck Serono Ventures) co-led a seed round of undisclosed size for the company in 2012. It had reportedly raised a total of approximately $5.4m from the corporates, Seed Capital and Sunstone Capital as of 2014.
Galecto’s largest shareholders are OrbiMed (11.7%), Novo (11.4%), Sunstone Capital (7.8%), M Ventures (6.5%), BMS (6.2%), HBM Healthcare Investments and Cormorant (6.1%), Ysios Capital (5.8%) and Bay City Capital (5.5%).
BofA Securities, SVB Leerink and Credit Suisse Securities (USA) have been appointed underwriters for the IPO, which is slated to take place on the Nasdaq Global Market.
