Galecto Biotech Accelerates Financing and Secures SEK 40 Million – Investors Support Expansion of Project Portfolio in Galectin Modulator Space

Copenhagen, October 30, 2013

Galecto Biotech AB today announced that the current investor syndicate has provided SEK 40 million to accelerate product development.

Current investors of Galecto Biotech AB have confirmed the early release of additional funding to the company, which will enable acceleration of the development of its key drug candidates. The investor syndicate composed of four VCs with strong biotech records (Novo Seeds, MS Ventures, Sunstone Capital, and SEED Capital) continues to express strong confidence in Galecto Biotech’s portfolio of new promising Galectin Modulators. Stephan Christgau, Novo Seeds, Novo A/S, comments on the new grant, “We fully recognize the huge potential Galecto Biotech is offering and look forward to participating in the process of making the company’s discoveries a commercial success”.
The funds are intended for advancing the product development programs, accelerating the planned studies and expanding the operations. “I am very pleased that our investors have proposed to move up the third and last round of the current investment round due to the success of the projects and the advances we have already made. We plan to use the proceeds of this funding round to continue refining and broadening our drug programs and to initiate our first clinical trial in 2014, as planned”, says CEO Hans Schambye.

Chairman of the Board, Magnus Persson continues, ”It is great to see that Galecto Biotech will now receive the round 3 investment and I look very much forward to following the development of the lead candidate, TD139, which shows great promise as a novel treatment for idiopathic pulmonary fibrosis (IPF). This disease represents a significant unmet medical need, and TD139 has profound anti-fibrotic effects”.

Since its founding in 2011, the company’s team of scientists and experts has proven that galectin-3 is an attractive drug target. The Company’s lead products have shown promising effects in several disease models, including fibrosis, inflammation and cancer, demonstrating that Galectin Modulators can open new possibilities for treating these serious diseases.

About SEED Capital
SEED Capital is the largest venture fund in Denmark within the pre-seed and seed segment and specializes in identifying and developing new and innovative technology companies. SEED Capital manages both private and public venture capital funds through innovation environment DTU Symbion Innovation. Public funding allows SEED to invest in start-ups in the early stages, and private funds are invested in the most successful companies in subsequent rounds of investment. SEED manages today approx. 1.5 billion DKK and has about 70 companies in its portfolio.
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About Sunstone Capital
Sunstone Capital is an independent venture capital investor founded in 2007 by an international team of industry experts with combined entrepreneurial, operational and financial experience. Sunstone Capital focuses on developing and expanding early-stage Life Science and Technology companies with strong potential to achieve global success in their markets. Sunstone Capital currently manages four Life Science funds and three Technology funds. Within Life Science, Sunstone Life Science Ventures has invested in more than 35 companies in the areas of pharmaceuticals, medical technologies and diagnostics, and has completed several successful exits and IPOs. Managing total funds of EUR 693 million, Sunstone Capital is one of the largest and most active European venture capital investors.
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About Novo Seeds
Novo A/S is the holding and investment company of the Novo Group, and is wholly owned by the Novo Nordisk Foundation. Novo A/S was formed in 1999 to actively manage the assets of the foundation. It employs about 30 people and has approximately USD 15 billion of assets under management. These includes significant shareholdings in the publicly listed Novo Nordisk A/S (NYSE: NVO) and Novozymes A/S (NVZMF.PK), Novo A/S provides seed, venture and growth capital to development stage companies within life science and biotechnology, as well as manages a broad portfolio of financial assets. Novo A/S is committing up to USD 300 million annually to its investments in seed, venture and growth equity life science companies. Novo Seeds was launched in September 2007 as a new initiative from Novo A/S and the Novo Nordisk Foundation to provide funding for early stage projects and seed financing of new life science companies in Scandinavia.
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About MS Ventures
MS Ventures is the strategic corporate venture capital fund of Merck Serono, the biopharmaceutical division of Merck KGaA, Darmstadt, Germany. The fund was established in March 2009 and focuses primarily on early stage investments. MS Ventures has a strategic mandate and invests in companies that develop products and/ or technologies that could benefit patients in therapeutic areas relevant to Merck Serono. MS Ventures has a total of € 140 million under management for strategic investments, investments through its Israel BioIncubator and for spin-offs from the Merck Serono organization.
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About Galecto Biotech AB
Galecto Biotech is a newly founded company, focused on developing novel drugs for the treatment of fibrosis, inflammation and other serious human diseases. The company’s products target galectins or galactoside binding lectins, which are a group of proteins shown to be involved in many disease processes. Galecto Biotech’s high potency galectin inhibitors may open new treatment possibilities for many patients. The company is led by top-level scientists and biotech executives. Galecto Biotech is located in Copenhagen, Denmark, in close proximity to the founders’ research groups.
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For further information please contact:
Hans Schambye
CEO, Galecto Biotech
Tel: +45 26 3737 26

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