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 full year and fourth quarter, ended December 31, 2011. These results are included in the Company's Annual Report on Form 10-K, which has been filed with the SEC.
“Galectin Therapeutics has made very significant progress in our development programs and in our operations over the past year”
On March 28, 2012, Galectin Therapeutics sold 2,666,722 shares of its common stock and related warrants to purchase 1,333,361 shares of common stock for gross proceeds of $12.0 million (net proceeds of approximately $10.5 million). Each warrant has an exercise price of $5.63 per share and is exercisable until March 28, 2017. On March 23, 2012, the Company effected a one-for-six reverse split of its common stock and began trading on The NASDAQ Capital Market under the symbol GALT.
"Galectin Therapeutics has made very significant progress in our development programs and in our operations over the past year," said Peter G. Traber, M.D., Chief Executive Officer, President and Chief Medical Officer, Galectin Therapeutics. "Our GR-MD-02 compound has demonstrated the ability to arrest and reverse liver fibrosis in several preclinical disease models, including fatty liver disease (non-alcoholic steatohepatitis, or NASH). We are now conducting preclinical studies with the aim of entering clinical trials for NASH in 2012. This program has the unique potential to offer a new treatment for NASH or liver fibrosis, for which the only current treatment option is liver transplantation."
Traber continued, "Galectin Therapeutics also recently raised significant capital and completed a listing on the NASDAQ Capital Market. The proceeds from this financing will support the continued advancement of our portfolio of galectin inhibitors while the broader listing will offer the Company and its shareholders greater stability and liquidity. We are now in a very solid position to execute on our strategic objectives and look forward to data from our programs in NASH as well as cancer immunotherapy in 2012."
At December 31, 2011, the Company had $6.4 million of non-restricted cash and cash equivalents available to fund future operations. The Company believes that with the funds on hand at December 31, 2011, and the approximate $10.5 million received subsequent to year-end, there is sufficient cash to fund core operations and planned research and development through 2013.
As a result of the one-for-six reverse split of the Company's common stock effective March 23, 2012, all share and per share amounts for 2011 and 2010 have been split effected unless otherwise noted.
For the fourth quarter of 2011, the Company reported a net loss applicable to common stock of $3.7 million, or ($0.29) per share, basic and diluted, compared with a net loss of $1.5 million or ($0.15) per share for the same period in 2010. For the full year 2011, the Company reported a net loss applicable to common stock of $12.7 million, or ($1.06) per share, basic and diluted, compared with a net loss of $8.7 million, or $(0.93) per share in 2010. The full year 2011 results included $0.5 million of non-cash expense related to the change in the fair value of warrants compared with $1.2 million of non-cash expense in 2010. The full year 2011 results include $1.8 million of non-cash expense related to dividends and accretion on the preferred stock compared with $3.1 million in 2010.
Research and development expense for the fourth quarter of 2011 was $0.9 million, compared with $0.4 million for the same period in 2010. Research and development expense for the full year 2011, was $3.6 million, compared with $1.1 million in 2010. The increase for the fourth quarter and the year-over-year expenses is due primarily to increased preclinical activity in our fibrosis program and clinical program activity related to our GM and GR compounds, as well as increased expenses related to salaries and stock-based compensation.
General and administrative expense for the fourth quarter of 2011 was $2.5 million, compared with $0.9 million for the same period in 2010. General and administrative expense for the full year 2011 was $6.9 million as compared to $3.8 million for 2010. The increase for the fourth quarter and full year 2011 is due primarily to the fourth quarter recognition of a $1.0 million payment due under a severance agreement with our former CEO when it became probable that the Company would be relisted on a national securities exchange. Additionally, the increase in expense for the fourth quarter and full year 2011 is due primarily to higher payroll, employee stock-based compensation expense and legal and litigation settlement costs.
How different types of bread impact cancer risk