Aileron Therapeutics announces acquisition of Lung Therapeutics

Aileron Therapeutics announced it has acquired Lung Therapeutics, a privately held biopharmaceutical company focused on developing novel therapies for the treatment of orphan pulmonary and fibrosis indications that have no approved or limited effective treatments. Immediately following the acquisition of Lung Tx, Aileron entered into a definitive agreement for the sale of shares of Aileron’s Series X non-voting convertible preferred stock and warrants to purchase shares of Aileron’s common stock in a private placement to a group of accredited investors led by Bios Partners, and including Nantahala Capital, as well as additional undisclosed investors. The private placement is expected to result in gross proceeds to Aileron of approximately $18M before deducting placement agent fees and other offering expenses. Aileron intends to use the proceeds from the private placement primarily to complete the ongoing Phase 1b clinical study of LTI-03, a Caveolin-1-related peptide in development for the treatment of IPF, and for general corporate purposes. “We are pleased to announce that after a thorough evaluation of strategic alternatives, we have completed the acquisition of Lung Therapeutics, which we believe represents a value-creation opportunity for Aileron’s stockholders. We are thankful and appreciative of our board members, management team and employees, both past and present, along with our investors for their support and commitment,” said Manuel Aivado, M.D., Ph.D, CEO of Aileron. Aileron will be led by its current management team consisting of Manuel C. Aivado, M.D., Ph.D, CEO, and Susan Drexler, M.B.A., C.P.A., Interim CFO, as well as Brian Windsor, Ph.D, former CEO of Lung Tx, who was appointed as President and COO of Aileron.