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On January 16th, 2019 Galectin Therapeutics (Nasdaq: GALT) board of directors approved the extension of retention bonuses to the company’s CEO Dr. Harold H. Shlevin and CFO Jack W. Callicutt. The arrangement specifies that the individuals will receive bonuses in the amount of 25% of their annual salaries if employed by GALT on June 30, 2019, December 31, 2019, June 30, 2020, and December 31, 2020. Payments would be made 15 days after each of the respective dates.
The obvious implication is the company is gearing up for a phase 3 trial of GRMD-02 in NASH Cirrhosis. It would be prudent for the company to retain a management team with an expert understanding of the compound being tested (i.e. GRMD-02). Based on discussions with the FDA and the company’s guidance we know the target population will be patients without varices, and the primary endpoint either progression of varcies or change in HVPG. The latter is riskier considering past data in GALTs’ phase 2b trial and Conatus Pharmaceuticals (Nasdaq: CNAT) ENCORE-PH CX. Thus, the smart choice would be progression of varcies. Last week the largest institutional shareholder (the 10X Fund) converted their preferred B stock into common stock. This is in tandem with a shout out to the hard work by Back Bay is a clear signal that dilution is not the answer to funding phase 3. At some point here in 2019 (probably sooner than later) we foresee GALT announcing an M&A of sorts.
On a separate note check out our latest Equity Analysis article “Bristol-Myers Squibb Positioned For Deep Penetration In the Multiple Myeloma Market“
I am sure a little GRMD-02 would only bolster BMYs’ oncology combo therapies.
I am/we are long GALT
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