Galectin Therapeutics Inc. (NASDAQ:GALT) announced it has secured a new $10 million unsecured line of credit from Richard E. Uihlein, the company's Chairman and largest individual stockholder, providing sufficient funding to advance its metabolic dysfunction-associated steatohepatitis (MASH) cirrhosis program through June 2026.
The financing arrangement allows borrowings at the company's discretion through April 30, 2026, with advances bearing interest at the Applicable Federal Rate for short-term loans (currently 4.05%) plus 2%. Principal and interest are due on September 30, 2026, with convertible promissory notes that may be converted into common stock at a conversion price equal to the closing price on the date of the note, but no less than $3.00 per share.
Strategic Focus on MASH Cirrhosis
"Belapectin has the potential to address a significant unmet medical need in MASH cirrhosis, and I am committed to ensuring that the Company is funded sufficiently in order to fully evaluate the potential of its MASH cirrhosis program," said Richard E. Uihlein. "I am encouraged by what our team has accomplished, and look forward to additional data from the NAVIGATE trial, as well as discussions with potential partners."
Belapectin is a carbohydrate-based drug that inhibits the galectin-3 protein, which is directly involved in multiple inflammatory, fibrotic, and malignant diseases. The drug has received Fast Track designation from the U.S. Food and Drug Administration for its lead development program in MASH with cirrhosis, described as the most advanced form of MASH-related fibrosis.
NAVIGATE Trial Progress
Joel Lewis, Chief Executive Officer and President of Galectin Therapeutics, highlighted the company's progress with the ongoing NAVIGATE trial. "We are encouraged by the data presented thus far from the NAVIGATE trial, in particular the confirmatory Fibroscan Liver Stiffness Measure (LSM) biomarker data in our May 15, 2025 press release, and look forward to sharing additional analysis, as they become available," Lewis stated.
The company remains focused on preparing to present data to the FDA in the fall of 2025 and is actively seeking partnerships to support further development and eventual commercialization of belapectin in patients with MASH cirrhosis and portal hypertension.
Extended Financial Runway
In addition to the new credit line, the maturity dates of the company's three existing $10 million convertible notes payable to Uihlein and aggregate borrowings of $81 million under several lines of credit have been extended to September 30, 2026. This extension provides additional financial flexibility as the company advances its clinical programs.
The company will issue up to 200,000 stock purchase warrants to Uihlein ratably (20,000 warrants per $1 million of borrowings), with exercise prices equal to 150% of the closing stock price on the date of the promissory note, capped at $10.00 per share and no less than $3.00 per share.
Broader Development Pipeline
Beyond MASH cirrhosis, Galectin Therapeutics is developing additional programs in combination immunotherapy for advanced head and neck cancers and other malignancies. However, advancement of these clinical programs is largely dependent on finding suitable partners.
According to the company, liver cirrhosis represents one of the most pressing medical needs and a significant drug development opportunity. Galectin seeks to leverage extensive scientific and development expertise as well as established relationships with external sources to achieve cost-effective and efficient development.
