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Galectin Therapeutics Reports Update on Enrollment of First Cohort of Phase 1 Clinical Trial and Third Quarter 2013 Financial



Galectin Therapeutics Reports Update on Enrollment of First Cohort of Phase 1
Clinical Trial and Third Quarter 2013 Financial Results

NORCROSS, Ga., Nov. 12, 2013 (GLOBE NEWSWIRE) -- Galectin Therapeutics Inc.
(Nasdaq:GALT), the leading developer of therapeutics that target galectin
proteins to treat fibrosis and cancer, today reported that five of the eight
patients have been enrolled and infused in cohort 1 of its blinded Phase 1
clinical trial of GR-MD-02 for patients with nonalcoholic steatohepatitis
(NASH or fatty liver disease) with advanced fibrosis. The Company also
reported its financial results for the third quarter and first nine months
ended September 30, 2013. These results are included in the Company's
Quarterly Report on Form 10-Q, which has been filed with the Securities and
Exchange Commission.

"We are pleased to announce completion of enrollment of the first five of
eight patients in our Phase 1 clinical trial for patients with NASH (fatty
liver disease) with advanced fibrosis. The patients enrolled have not incurred
any serious adverse events. Completion of the enrollment of the first cohort
will be an important milestone in the development of our proprietary, novel
technology and, if all goes as expected, the clinical data from the first
cohort should be available early in 2014," said Peter G. Traber, M.D., Chief
Executive Officer, President and Chief Medical Officer, Galectin Therapeutics.
"This Phase 1 first-in-man study will evaluate the safety, tolerability,
pharmacokinetics and exploratory biomarkers for efficacy for single and
multiple doses of GR-MD-02 when administered to patients with fatty liver
disease with advanced fibrosis."

The Company also is working with Providence Portland Medical Center in
planning for a Phase 1 clinical trial to evaluate the combination of
Bristol-Myers Squibb's Yervoy® (ipilimumab) and the Company's GR-MD-02 in
patients with metastatic melanoma. This trial is based on pre-clinical data
obtained in collaboration with Dr. Will Redmond at the center which
demonstrated that the combination of immune checkpoint inhibitors like
ipilimumab with GR-MD-02 enhances the antitumor effect in syngeneic mouse
cancer models.

At September 30, 2013, the Company had $9.7 million of non-restricted cash and
cash equivalents available to fund future operations. Subsequent to quarter
end, the Company received $1.6 million from the exercise of warrants and
options, with $1.5 million coming from warrant exercises by 10X Fund L.P.
Additionally since September 30, 2013, the Company received $0.5 million in
net proceeds from the issuance of 50,643 shares through its At Market stock
issuance program at an average price per share of $10.82. The Company believes
that the cash on hand at quarter end and already received is sufficient to
fund operations and planned research and development into the third quarter of
2014. The Company routinely evaluates financing alternatives to raise
additional funding to support the next steps in its clinical development
program, including, from time to time, potentially issuing shares through the
At Market stock issuance program.    

For the third quarter of 2013, the Company reported a net loss applicable to
common stock of $3.7 million, or ($0.22) per share, basic and diluted,
compared with a net loss applicable to common stock of $3.0 million or ($0.19)
per share for the same period in 2012. The increase in net loss applicable to
common stock is primarily due to a $989,000 increase in the non-cash charge
related to stock based compensation.  Research and development expense for the
third quarter of 2013 was $1.2 million, compared with $1.4 million for the
same period in 2012.  General and administrative expense for the third quarter
of 2013 was $2.4 million, compared with $1.5 million for the same period in
2012. The primary reasons for the increase were non-cash stock-based
compensation and legal expense offset somewhat by decreased rent expense.

For the nine months ended September 30, 2013, the Company reported a net loss
applicable to common stock of $18.8 million, or ($1.15) per share, basic and
diluted, compared with a net loss of $8.2 million, or ($0.55) per share for
the same period in 2012. The increase in net loss applicable to common stock
is primarily due to an $8.8 million or ($0.53) per share one-time, non-cash
stock compensation charge recorded in the second quarter of 2013. Research and
development expense for the nine months ended September 30, 2012 increased to
$4.3 million compared with $3.5 million for the same period in 2012, due
primarily to clinical program expenses related to the Phase 1 clinical trial.
As we continue to enroll patients in the Phase 1 trial, we expect our clinical
activities costs may increase and fluctuate from quarter to quarter as the
trial progresses. General and administrative expense for the nine months ended
September 30, 2013 increased to $5.0 million compared with $4 million for the
same period in 2012, due primarily to increases in non-cash stock based
compensation and legal expenses related to ongoing litigation with the
Company's former CEO and investor relations expenses, offset by decreased rent
expense due to our relocation to Georgia in October 2013.

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. These statements
include those regarding our plans, expectations and goals regarding the
clinical trial, including our expectation that clinical data from the first
cohort should be available early in 2014 , the Company's plans regarding a
potential Phase 1 clinical trial to evaluate the combination of Bristol-Myers
Squibb's Yervoy® (ipilimumab) and the Company's GR-MD-02 in patients with
metastatic melanoma, and plans regarding future funding alternatives and the
sufficiency of cash on hand to fund future operations and planned research and
development into the third quarter of 2014. Factors that could cause our
actual performance to differ materially from those discussed in the
forward-looking statements include, among others, that our plans, expectations
and goals regarding the clinical trial or any future trials are subject to
factors beyond our control and there is no guarantee that we will avoid delays
in the development of our drug products or receive FDA approval for any of our
drugs in development. Our clinical trial and any future trials may not produce
positive results in a timely fashion, if at all, and any necessary changes
during the course of a trial could prove time consuming and costly. We may
have difficulty in enrolling candidates for testing, which would impact our
estimates regarding timing, and we may not be able to achieve the desired
results. Upon receipt of FDA approval, we may face competition with other
drugs and treatments that are currently approved or those that are currently
in development, which could have an adverse impact on our ability to achieve
revenues from any proposed indications. Plans regarding development, approval
and marketing of any of our drugs, including GR-MD-02, are subject to change
at any time based on the changing needs of our company as determined by
management and regulatory agencies. To date, we have incurred operating losses
since our inception, and our ability to successfully develop and market drugs
may be impacted by our ability to manage costs and finance our continuing
operations. For a discussion of additional factors impacting our business, see
our Annual Report on Form 10-K for the year ended December 31, 2012, and our
subsequent filings with the SEC.  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.

Yervoy® is a registered trademark of Bristol-Myers Squibb

Condensed Consolidated Statements of Operations

                                         Three Months       Nine Months
                                         Ended              Ended
                                         September 30,      September 30,
                                         2013      2012     2013      2012
                                         (in thousands, except per share data)
                                         (unaudited)
Operating expenses:                                                    
Research and development                 $ 1,192   $ 1,409  $ 4,293   $ 3,525 
General and administrative               2,353     1,487    5,007     3,992
Total operating expenses                 3,545     2,896    9,300     7,517
Total operating loss                     (3,545)   (2,896)  (9,300)   (7,517)
Other income:                                                          
Interest and other                       3         207      11        218
Total other income                       3         7        11        218
Net loss                                 $(3,542)  $(2,689) $(9,289)  $(7,299)
Preferred stock dividends and accretion  (181)     (296)    (784)     (874)
costs
Modification of warrants                 --        --       (8,763)   --
Net loss applicable to common stock      $(3,723)  $(2,985) $(18,836) $(8,173)
Basic and diluted net loss per share     $ (0.22)  $ (0.19) $ (1.15)  $ (0.55)
Shares used in computing basic and       16,988    15,822   16,438    14,851
diluted net loss per share

Condensed Consolidated Balance Sheet Data

 

                                              September 30, December 31,
                                              2013          2012
                                              (in thousands, unaudited)
Cash and cash equivalents                     $ 9,715       $ 9,364
Total assets                                  9,777         9,561
Total current liabilities                     1,603         1,638
Total liabilities                             1,604         1,644
Total redeemable, convertible preferred stock 6,873          6,752
Total stockholders' equity                    $ 1,300       $ 1,165

CONTACT: Jack Callicutt, Chief Financial Officer,
         678-620-3186, ir@galectintherapeutics.com

Galectin Therapeutics, Inc. Logo
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