Galecto, Inc. Reports $3.4 Million Net Loss in Q2 2025, Focuses on AML Drug Development

Galecto, Inc. reported its financial results for the second quarter of 2025, revealing a net loss of $3.4 million, a decrease from the $5.3 million loss recorded in the same period of 2024. For the six months ending June 30, 2025, the company reported a net loss of $6.0 million, down from $10.8 million in the prior year. The reduction in losses is attributed to a significant decrease in operating expenses, which totaled $3.4 million for the quarter, compared to $5.6 million in the previous year, marking a 38.7% decline. This decrease was driven by lower research and development costs, which fell to $1.5 million from $1.8 million, and a reduction in general and administrative expenses from $2.8 million to $2.0 million.

The company’s cash and cash equivalents as of June 30, 2025, stood at $10.2 million, down from $14.2 million at the end of 2024. Current assets decreased to $13.0 million from $16.8 million, while current liabilities increased to $2.6 million from $1.2 million. The accumulated deficit reached $283.5 million, reflecting ongoing challenges in achieving profitability. Galecto has not generated revenue from product sales, as none of its product candidates have received regulatory approval.

Strategically, Galecto has undergone significant organizational changes, including a restructuring initiated in September 2023, which led to a reduction in workforce and a reevaluation of its strategic focus. The company has shifted its attention to the development of GB3226 and GB1211, following the acquisition of the BRM-1420 program from Bridge Medicines in October 2024. This program targets acute myeloid leukemia (AML) and is now a key part of Galecto's pipeline. The company has decided not to advance its LOXL-2 inhibitor candidate, GB2064, as part of this strategic realignment.

Operationally, Galecto is focused on advancing its clinical programs, particularly GB3226, which is expected to enter clinical trials in 2026. The company plans to submit an investigational new drug application (IND) to the FDA for GB3226, which is designed to address multiple genetic subsets of AML. The GALLANT-1 trial for GB1211 has shown promising results, with several patients demonstrating partial responses to treatment. However, the company acknowledges the need for substantial additional funding to support its ongoing development efforts and has expressed concerns about its ability to continue as a going concern without securing further capital.

Looking ahead, Galecto anticipates continued net losses as it invests in the development of its product candidates. The company is actively exploring options for raising additional capital, which may include equity or convertible debt financing, to support its operations and clinical development plans. The financial outlook remains uncertain, with the potential for significant fluctuations in expenses and cash flow as the company navigates the complexities of drug development and regulatory approval processes.