SVB Securities downgraded Galecto to Market Perform from Outperform with a price target of $2, down from $13. The analyst cites the “disappointing” results from the Phase 2b GALACTIC-1 study of GB0139 in idiopathic pulmonary fibrosis for the downgrade. Galecto plans to discontinue GB0139 development and expects to refocus its resources on opportunities in severe liver diseases, such as decompensated cirrhosis and hepatocellular carcinoma, the analyst tells investors in a research note. The firm expects investors will take a “wait-and-see” approach to these assets. SVB awaits greater clarity on Galecto’s strategic refocus in severe liver diseases.
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