Galecto to merge with PharmAkcea Inc.

Galecto, the leading developer of galectin modulators for the treatment of fibrotic diseases including idiopathic pulmonary fibrosis (IPF) and cancer, and PharmAkea, Inc., a privately held San Diego-based pharmaceutical company developing novel small molecules against protein targets involved in fibroproliferative disease, announced the two companies will merge. Financial terms have not been disclosed. Following completion, the joint company will retain the Galecto name and current senior management team, including Hans Schambye as CEO. Galecto, Inc. will be incorporated in the US and will retain its operating headquarters in Copenhagen, Denmark. The merger brings together two clinical stage companies with strong programs in fibrosis and cancer, including an inhaled galectin-3 modulator currently in phase IIb for the potential treatment of idiopathic pulmonary fibrosis. Galecto has built a broad pipeline of drug candidates targeting the role of galectin-3 in inhibiting cells involved in fibrosis. This is complemented by PharmAkea, which has developed small molecules that target LOXL 2, a key enzyme involved in the formation of the extracellular matrix during the fibrotic process.