Galecto Inc (NASDAQ:GLTO) shares are trading lower by 27% to $8.50 during Monday's session. The company issued 62,594 shares of common stock and 160,562 of preferred convertible shares to Bridge Medicine as part of their acquisition for the rights to BRM-1420.
What Happened: Galecto announced a strategic shift to focus on cancer and liver disease, particularly leveraging its clinical-stage asset GB1211, which the company says has shown positive results in non-small cell lung cancer (NSCLC) and cirrhosis studies.
To strengthen its pipeline, Galecto has acquired global rights to BRM-1420, a novel drug developed by Bridge Medicines, a company co-founded by Takeda. Galecto says BRM-1420 has shown promise in treating genetic subsets of acute myeloid leukemia (AML) and could enhance standard therapies.
In exchange for the rights to BRM-1420, Galecto issued shares representing 4.99% of its outstanding common stock to Bridge Medicines, along with preferred shares that could convert to an additional 12.8% of common stock upon stockholder approval.
Matthew Kronmiller, CEO of Bridge Medicines, will join Galecto as Executive Vice President of Strategy and Chief Business Officer. The transaction was approved by both companies' boards, with Leerink Partners advising Galecto and Lazard advising Bridge Medicines.
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How To Buy GLTO Stock
Besides going to a brokerage platform to purchase a share – or fractional share – of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument.
For example, in Galecto's case, it is in the Health Care sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.
According to data from Benzinga Pro, GLTO has a 52-week high of $23.50 and a 52-week low of $8.45.
