Galecto Biotech secured €79 million series C financing co-led by Ysios Capital and OrbiMed
Galecto Biotech, a Copenhagen, Denmark-based biotech company, announced getting into an agreement for closing of a €79M ($90M) series C financing round co-led by Ysios Capital and OrbiMed.
New investors Ysios Capital, OrbiMed, HBM Healthcare Investments, OrbiMed Israel, Bristol Myers-Squibb, Maverick Ventures and Seventure Partners joined existing investors Novo Seeds, M Ventures, and Sunstone Capital in the financing round.
As part of the financing, Novo Seeds invested €12.5 million, including a convertible loan, becoming the largest shareholder in Galecto. Novo Seeds Senior Partner, Stephan Christgau will continue to serve on the Galecto Board.
Concurrent with the financing, Karen Wagner (Ysios Capital), Chau Khuong (OrbiMed), Chandra Leo (HBM) and Erez Chimovits (OrbiMed Israel) were appointed to the Galecto Board of Directors.
The announcement comes after the one from 2014 when medical company Bristol-Myers Squibb signed an exclusive option agreement to acquire Galecto. Under terms of the agreement, Bristol-Myers Squibb could have exercised the option to acquire Galecto at any time following the execution of the transaction agreement but no later than 60 days following completion of the Phase 1b trial. The companies had agreed on pre-clinical studies and a Phase 1 development plan that will be executed by Galecto AB during the option period.
Galecto, led by CEO Hans Schambye, is a Swedish company founded in 2011 by leading galectin scientists and biotech executives from Sweden, United Kingdom, and Denmark. The company today is located in Copenhagen, Denmark.
Galecto was first funded through the pre-seed grant programme of the Novo Nordisk Foundation in 2010, and subsequently Novo Seeds led the seed investment in 2011.