Why Is Galecto Stock (GLTO) Up 285% Today?

Galecto (GLTO) stock rocketed higher on Monday following the biotechnology company’s acquisition of Damora Therapeutics. With this acquisition, the combined company has a product pipeline that includes a wide variety of treatment candidates for hematological cancers. It will also provide the resources needed to advance research and development of Damora Therapeutics’ pipeline.

Dr. Hans Schambye, President and CEO of Galecto, said, “The acquisition of Damora marks a pivotal milestone for Galecto as we evolve our focus toward advancing Damora’s highly differentiated mutCALR portfolio, which addresses significant unmet need across the full spectrum of blood cancers driven by mutCALR.”

Additionally, Galecto completed a concurrent private placement of Series C non-voting convertible preferred stock alongside this acquisition. Fairmount led this funding round, which resulted in $284.9 million in gross proceeds. The company noted that these funds will allow it to continue operations through 2029. Data from the first Damora Therapeutics clinical trials are expected in 2027.

Galecto Stock Movement Today

Galecto stock was up 286.87% in pre-market trading on Monday, following a 14.95% fall on Friday. The shares have rallied 6.45% year-to-date but were still down 30.08% as of Friday’s close.

With today’s news comes heavy trading of GLTO stock. This had more than 8.7 million shares traded as of this writing, compared to a three-month daily average of about 5.26 million units.

Is Galecto Stock a Buy, Sell, or Hold?

Turning to Wall Street, analyst coverage of Galecto is lacking. Fortunately, TipRanks’ AI analyst Spark has it covered. Spark rates GLTO stock an Underperform (29) with no price target. It cites “significant financial challenges, with no revenue, ongoing losses, and high cash burn” as reasons for this stance.

See what else Spark has to say about GLTO stock