Last Updated on January 23, 2019 by Sultan Beardsley
Leave a comment and click here to sub for MS article alerts and our newsletter!
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
MS Money Moves and it’s Chief Operating Officer who is a scientist and individual investor, as well as its affiliates are not registered financial advisors. Our posts should serve as educational material to help you conduct due diligence research. Posts and articles are not directives or recommendations to invest in any security. We reserve the right to buy or sell any security for ourselves without any notification except when required by law. We are not responsible for the action of our affiliates. Investment theses may change due to the variable nature of the securities market. Because of this there is great risk when investing in stocks and options which can result is capital loss. Additionally, past performance by MS Money Moves or any security is not a predictor of future performance. Everyone should conduct their own research and due diligence before making an investment decision. We recommend you consult a financial advisor regarding any investment action.
The biotech sector is especially volatile. Stock prices may fluctuate substantially based on material or nonmaterial developments. We encourage everyone to familiarize themselves with clinical trial processes, relevant terminology, FDA/SEC rules and regulations, and the general processes of drug & therapy development/approval. Always do independent research in a security prior to investing.