Published on 16 Aug 2023 on Zacks via Yahoo Finance

Galecto (GLTO) Down 71% as Lung Disease Candidate Fails

Galecto’s GLTO mid-stage study evaluating inhaled GB0139 for treatment of idiopathic pulmonary fibrosis (IPF) did not meet its primary endpoint of change from baseline in rate of decline in forced vital capacity (FVC). FVC is a widely used and validated standard measurement for IPF studies. Shares of the company plunged more than 71% on Tuesday, in response to the failure.

Following the disappointing results, Galecto intends to discontinue development of GB0139 and focus on the development of treatments for severe liver diseases.

The phase IIb GALACTIC-1 study evaluated the safety and efficacy of GB0139 in patients with IPF — a chronic lung disease characterized by progressive scarring of lung tissue. Currently there are only two approved treatments for IPF — Esbriet (pirfenidone) marketed by Roche RHHBY/Genentech and Ofev (nintedanib) marketed by Boehringer Ingelheim.