Galectin Therapeutics Reports First Quarter 2013 Financial Results

      Galectin Therapeutics Reports First Quarter 2013 Financial Results

PR Newswire

NORCROSS, Ga., May 10, 2013

NORCROSS, Ga., May 10, 2013 /PRNewswire/ --Galectin Therapeutics Inc.
(NASDAQ: GALT), the leading developer of therapeutics that target galectin
proteins to treat fibrosis and cancer, today reported its financial results
for the first quarter, ended March 31, 2013. These results are included in the
Company's Quarterly Report on Form 10-Q, which has been filed with the SEC.

"During the first quarter of 2013 we completed a significant milestone with
the submission of an IND for GR-MD-02 and the FDA's ok that we could proceed
with a Phase 1 clinical trial," said Peter G. Traber, M.D., Chief Executive
Officer, President and Chief Medical Officer, Galectin Therapeutics. "We
engaged CTI Clinical Trial Services to provide services related to a Phase 1
clinical trial of GR-MD-02 in patients with nonalcoholic steatohepatitis
(NASH) and liver fibrosis and expect to begin enrolling patients in this trial
in the second quarter of 2013, with expected top line results sometime late in
2013 or early 2014. The novel mechanism of action of GR-MD-02, in combination
with compelling preclinical data, gives us great hope that this compound may
ultimately meet the needs of patients with this deadly disease that currently
has no approved therapeutic options."

At March 31, 2013, the Company had $7.0 million of non-restricted cash and
cash equivalents available to fund future operations and the Company believes
is sufficient cash to fund core operations and planned research and
development through the first quarter of 2014.

For the first quarter of 2013, the Company reported a net loss applicable to
common stock of $3.5 million, or ($0.22) per share, basic and diluted,
compared with a net loss of $2.2 million or ($0.17) per share for the same
period in 2012. The weighted average number of shares used to calculate loss
per share increased for the 2013 period compared to the 2012 period due
primarily to the March 2012 offering of 2.7 million common shares as well as
the payment of dividends in common stock.

Research and development expense for the first quarter of 2013 was $1.8
million, compared with $0.9 million for the same period in 2012. The increase
is due primarily to clinical program expenses related to the Phase I clinical
trial agreement we entered into with CTI during the three months ended March
31, 2013. As we begin enrolling patients in the Phase I trial we expect our
clinical activities costs may increase and will fluctuate from quarter to
quarter as the trial progresses.

General and administrative expense for the first quarter of 2013 was $1.5
million, compared with $1.1 million for the same period in 2012. The primary
reasons for the increase is due to increased stock-based compensation, legal
expenses and public company related costs, offset by decreased facilities
costs as we moved the location of our headquarters to Georgia.

About Galectin Therapeutics

Galectin Therapeutics (NASDAQ: GALT) is developing promising
carbohydrate-based therapies for the treatment of fibrotic liver disease and
cancer based on the Company's unique understanding of galectin proteins, key
mediators of biologic function. We are leveraging extensive scientific and
development expertise as well as established relationships with external
sources to achieve cost effective and efficient development. We are pursuing a
clear development pathway to clinical enhancement and commercialization for
our lead compounds in liver fibrosis and cancer. Additional information is
available at www.galectintherapeutics.com.

Forward Looking Statements

This press release contains, in addition to historical information,
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995. These statements relate to future events or
future financial performance, and use words such as "may," "estimate,"
"could," "expect" and others. They are based on our current expectations and
are subject to factors and uncertainties which could cause actual results to
differ materially from those described in the statements. Factors that could
cause our actual performance to differ materially from those discussed in the
forward-looking statements include, among others: incurrence of operating
losses since our inception, uncertainty as to adequate financing of our
operations, extensive and costly regulatory oversight that could restrict or
prevent product commercialization, inability to achieve commercial product
acceptance, inability to protect our intellectual property, dependence on
strategic partnerships, product competition, and others stated in risk factors
contained in our SEC filings. We cannot assure that we have identified all
risks or that others may emerge which we do not anticipate. You should not
place undue reliance on forward-looking statements. Although subsequent
events may cause our views to change, we disclaim any obligation to update
forward-looking statements.

Galectin Therapeutics and its associated logo is a trademark of Galectin
Therapeutics Inc.

Condensed Consolidated Statements of Operations

                                                     Three Months Ended

                                                     March 31,
                                                     2013         2012
                                                     (in thousands, except per
                                                     share data)

                                                     (unaudited)
Operating expenses:
 Research and development                           $1,752       $901
 General and administrative                         1,456        1,052
 Total operating expenses                           3,208        1,953
 Total operating loss                            (3,208)      (1,953)
 Total other income                              5            3
Net loss                                             $(3,203)     $(1,950)
Preferred stock dividends and accretion costs        (369)        (254)
 Net loss applicable to common stock             $(3,472)     $(2,204)
Basic and diluted net loss per share                 $ (0.22)    $ (0.17)
Shares used in computing basic and diluted net loss  16,079       13,010
per share



Condensed Consolidated Balance Sheet Data

                                        March 31, 2012   December 31, 2012
                                        (in thousands, unaudited)
Cash and cash equivalents             $ 7,018          $ 9,364
Total assets                            7,196            9,561
Accounts payable and accrued expenses   1,468            1,638
Total liabilities                       1,473            1,644
Total stockholders' equity (deficit)  $ (1,036)        $ 1,165



SOURCE Galectin Therapeutics Inc.
 
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