Galecto Prices $275 Million Public Offering

Galecto Prices Public Offering, Raising Approximately $275 Million

**Boston, MA – February 10, 2026** – Galecto, Inc. (NASDAQ: GLTO), a biopharmaceutical company dedicated to developing innovative therapies for blood cancers, has announced the pricing of its underwritten public offering. The company is set to issue 14,473,685 shares of common stock at $19.00 per share, a move expected to yield gross proceeds of approximately $275 million before accounting for underwriting discounts, commissions, and offering expenses.

Adding to this, the underwriters have secured a 30-day option to purchase an additional 2,171,052 shares of common stock at the same public offering price, less standard deductions. This option, if fully exercised, could bring the total capital raised closer to $317 million. The offering is anticipated to conclude on or around February 12, 2026, pending the satisfaction of customary closing conditions. The transaction is being conducted under an automatically effective shelf registration statement, signaling Galecto’s strategic approach to accessing capital markets efficiently.

This capital infusion arrives at a pivotal moment for Galecto. The company has been actively pursuing a pipeline focused on hematologic cancers, bolstered by recent significant financial maneuvers. Notably, a private placement in November 2025 raised approximately $285 million, providing a substantial runway estimated to extend into 2029. This prior financing, coupled with the current public offering, underscores a proactive strategy to fund its research and development initiatives, particularly its differentiated mutant calreticulin (mut-CALR)-driven myeloproliferative neoplasm portfolio and its preclinical dual inhibitor, GB3226, aimed at treating specific subsets of acute myeloid leukemia.

The pricing of this offering at $19.00 per share, while raising substantial capital, will inevitably lead to dilution for existing shareholders. The issuance of over 14.4 million new shares represents a notable increase relative to the company’s approximately 43.6 million common shares outstanding as of February 9, 2026, following a Series C conversion. Investors will be closely monitoring how this new capital is deployed to advance Galecto’s clinical programs and achieve key developmental milestones.

The market’s reaction prior to the announcement saw GLTO shares trade down 10.33% in the 24 hours leading up to the news, closing at $21.52. This decline appears to be stock-specific pressure related to the offering, rather than a broader market sentiment shift within the biotech sector, as indicated by positive movements in peer stocks like AZTR and XRTX during the same period. Despite the intraday dip, the stock remains trading above its 200-day moving average of $10.61, suggesting underlying technical strength.

Galecto’s recent history reflects a strategic pivot towards hematologic cancers, supported by robust financing activities. The acquisition of Damora and the subsequent ~$284.9 million private placement in November 2025 were key catalysts, driving a significant positive market reaction. Similarly, strategic updates and leadership additions in early 2026 have been met with favorable investor sentiment, reinforcing the company’s forward-looking narrative.

The company’s ability to execute this offering under a shelf registration statement highlights its established framework for accessing public markets. This flexibility allows for swift capital raising, as demonstrated by the current offering. Investors will likely continue to assess Galecto’s progress based on future shelf takedowns, adjustments to share counts, and the advancement of its clinical pipeline.

Jefferies, Leerink Partners, Evercore ISI, and Guggenheim Securities are serving as the joint book-running managers for this offering. The detailed terms and conditions, along with risk factors, are available in the company’s filings with the Securities and Exchange Commission (SEC), including the preliminary prospectus supplement and accompanying prospectus.