TLDR
- Galecto jumps 300% on $285M raise and Damora blood cancer drug portfolio deal.
- Galecto stock exploded after funding boost and Damora Therapeutics acquisition.
- GLTO rockets as biotech eyes 2026 trials for next-gen blood cancer treatments.
- Galecto lands $285M, merges with Damora, targets new standard in cancer care.
- GLTO soars as a new pipeline and major funding reshape biotech’s growth path.
GLTO surged over 300% today after announcing a $284.9 million private placement and acquiring Damora Therapeutics.
Galecto, Inc., GLTO
The acquisition expands Galecto’s pipeline into mutCALR-driven Myeloproliferative Neoplasms, enhancing its position in hematological oncology. Galecto, Inc. (GLTO) stabilized around $20 after an early spike, reflecting strong market support for the strategic shift.
Acquisition of Damora Therapeutics Signals Strategic Pipeline Expansion
GLTO acquired Damora Therapeutics to strengthen its focus on blood cancer therapeutics targeting mutCALR mutations in MPNs. The combined company now holds a broader pipeline addressing Essential Thrombocythemia (ET) and Myelofibrosis (MF). This positions GLTO to compete more aggressively in rare hematological indications.
Damora’s lead program, DMR-001, targets Type 1 and Type 2 mutCALR mutations with high potency in preclinical models. The program showed 10-fold greater activity in Type 2 models compared to other candidates under development. GLTO plans to initiate first-in-human studies for DMR-001 by mid-2026.
The acquisition enhances Galecto’s operational capability with Damora’s specialized team and complementary scientific assets. This includes two additional pipeline assets, DMR-002 and DMR-003, expected to enter Phase 1 trials. GLTO now aims to deliver more effective and convenient therapies for blood cancer patients.
$284.9 Million Private Placement Extends Cash Runway to 2029
GLTO secured approximately $284.9 million through a private placement led by Fairmount and several institutional funds. The funding ensures operational support through 2029, enabling development across multiple clinical-stage programs. GLTO now holds a stronger financial position to pursue regulatory and clinical milestones.
Investors include Viking Global, RA Capital, Wellington Management, and Andreessen Horowitz, adding credibility to the deal. The capital will fund the DMR-001 IND submission and clinical trials through 2027. GLTO also plans to advance other pipeline candidates within the same timeline.
With this capital raise, the company now balances strategic growth and capital efficiency. The funds also provide flexibility to explore synergistic opportunities in the oncology space. GLTO demonstrates readiness to scale development without delays.
Focus Shifts to Clinical Milestones and Next-Gen Oncology Programs
GLTO also highlighted progress on its AML program, GB3226, targeting ENL-YEATS and FLT3 mutations. The candidate will feature at the upcoming ASH 2025 meeting in Orlando, underlining its potential clinical relevance. GLTO aims to file an IND in Q1 2026 for first-in-human trials.
The FDA has already provided positive pre-IND feedback, encouraging the company to proceed with clinical preparation. GLTO expects to differentiate GB3226 through a dual-targeting mechanism for multiple AML subtypes. The candidate complements the company’s mutCALR-focused assets in strategic scope.
GLTO now leads with a diversified approach targeting mutCALR-driven MPNs and AML, supported by substantial funding. With the integration of Damora’s team and science, the company is better positioned for long-term success. GLTO marks a transformative shift in strategy and clinical potential.
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