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Galectin Therapeutics Inc (GALT)
NASDAQ:GALT

Galectin Therapeutics (GALT) AI Stock Analysis

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Galectin Therapeutics

(NASDAQ:GALT)

35Underperform
Galectin Therapeutics is a high-risk investment due to its challenging financial position, characterized by no revenues and high financial losses. However, the company's progress in clinical trials and potential partnerships offer a positive long-term outlook. Technical indicators suggest mixed short-term momentum, while traditional valuation metrics are less applicable due to ongoing losses and the absence of dividends.
Positive Factors
Clinical Trial Enhancements
The revised trial design for belapectin's Phase 2b study increases the likelihood of success, as it now has a lower statistical hurdle to meet.
Financial Stability
Galectin's cash runway extends beyond the key data readout, providing financial flexibility before advancing belapectin into Phase 3.
Trial Participation and Potential Impact
The NAVIGATE trial was over-enrolled by 42 patients, reflecting positive investigator response and potentially enhancing the trial's statistical power.
Negative Factors
Failure to Meet Primary Endpoints
The second Phase 2b study of belapectin failed to reach statistical significance on the primary endpoint.
Investor Sentiment
Investor sentiment on GALT is now rather poor, given this is the second Phase 2b trial to miss its primary endpoint.
Stock Performance Outlook
The stock is regarded to be deep in the penalty box, and only positive pivotal data can turn things around.

Galectin Therapeutics (GALT) vs. S&P 500 (SPY)

Galectin Therapeutics Business Overview & Revenue Model

Company DescriptionGalectin Therapeutics Inc., a clinical stage biopharmaceutical company, engages in the research and development of therapies for fibrotic, cancer, and other diseases. The company's lead product candidate is belapectin (GR-MD-02) galectin-3 inhibitor, a galactoarabino-rhamnogalacturonan polysaccharide polymer that is in Phase III clinical trial for the treatment of liver fibrosis associated with fatty liver disease and non-alcoholic steatohepatitis cirrhosis, as well as for the treatment of cancer. It also engages in developing GM-CT-01, which is in pre-clinical development stage for the treatment of cardiac and vascular fibrosis, as well as focuses on developing belapectin for the treatment of psoriasis, and lung and kidney fibrosis. The company, through its Galectin Sciences, LLC, which is a collaborative joint venture co-owned by SBH Sciences, Inc., to research and development of small organic molecule inhibitors of galectin-3 for oral administration. The company was formerly known as Pro-Pharmaceuticals, Inc. and changed its name to Galectin Therapeutics, Inc. in May 2011. Galectin Therapeutics Inc. was founded in 2000 and is based in Norcross, Georgia.
How the Company Makes MoneyGalectin Therapeutics primarily makes money through research and development collaborations, licensing agreements, and milestone payments related to its drug candidates. The company partners with larger pharmaceutical firms to advance the development and commercialization of its therapies, receiving payments for achieving specific research and development milestones. Additionally, Galectin Therapeutics may earn revenue through licensing its proprietary technology and intellectual property to other companies, which can include upfront payments, royalties, and other financial incentives contingent upon the successful commercialization of their drug candidates.

Galectin Therapeutics Financial Statement Overview

Summary
Galectin Therapeutics faces significant financial challenges, characterized by severe operational losses, high financial risk with negative equity, and ongoing cash burn. Reliance on financing is crucial due to unprofitability and insolvency risks.
Income Statement
10
Very Negative
Galectin Therapeutics shows a challenging financial position in its income statement, with negative revenue growth and poor profitability metrics. The gross profit margin is 66.25% for TTM, but the company remains deeply unprofitable with a net profit margin of -56346.25% due to high operating costs. EBIT and EBITDA margins are also negative, indicating significant operational inefficiencies.
Balance Sheet
5
Very Negative
The balance sheet reveals high financial risk, with a negative stockholders' equity of -$92.48M in TTM, indicating insolvency. The debt-to-equity ratio is not meaningful as equity is negative. This represents a high-risk financial structure with potential liquidity issues, highlighted by substantial liabilities exceeding assets.
Cash Flow
20
Very Negative
The cash flow statement shows negative free cash flow and operating cash flow, reflecting ongoing cash burn. Despite this, financing activities have provided some relief by raising funds. The operating cash flow to net income ratio is moderately stable at 0.75 in TTM, but the firm remains reliant on external financing.
Breakdown
Dec 2023Dec 2022Dec 2021Dec 2020Dec 2019
Income StatementTotal Revenue
0.000.000.000.000.00
Gross Profit
-33.00K-32.00K-41.00K-36.00K-35.00K
EBIT
-38.07M-38.35M-30.18M-23.44M-13.44M
EBITDA
-202.00K-37.71M-30.00M-23.34M-13.17M
Net Income Common Stockholders
-41.07M-39.20M-30.98M-23.52M-13.38M
Balance SheetCash, Cash Equivalents and Short-Term Investments
25.66M18.59M39.65M27.14M47.48M
Total Assets
28.20M21.29M41.83M29.60M48.47M
Total Debt
71.81M39.87M29.06M44.00K39.00K
Net Debt
46.15M21.28M-10.59M-27.10M-47.44M
Total Liabilities
88.44M55.20M40.93M5.41M2.87M
Stockholders Equity
-60.24M-33.92M893.00K29.60M45.59M
Cash FlowFree Cash Flow
-32.97M-31.06M-24.31M-20.60M-10.85M
Operating Cash Flow
-32.97M-31.06M-24.31M-20.60M-10.85M
Investing Cash Flow
0.000.000.000.000.00
Financing Cash Flow
40.03M10.00M36.81M263.00K50.08M

Galectin Therapeutics Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price1.36
Price Trends
50DMA
1.46
Negative
100DMA
1.41
Negative
200DMA
1.99
Negative
Market Momentum
MACD
-0.03
Negative
RSI
49.49
Neutral
STOCH
64.91
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GALT, the sentiment is Neutral. The current price of 1.36 is above the 20-day moving average (MA) of 1.34, below the 50-day MA of 1.46, and below the 200-day MA of 1.99, indicating a neutral trend. The MACD of -0.03 indicates Negative momentum. The RSI at 49.49 is Neutral, neither overbought nor oversold. The STOCH value of 64.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GALT.

Galectin Therapeutics Risk Analysis

Galectin Therapeutics disclosed 38 risk factors in its most recent earnings report. Galectin Therapeutics reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Galectin Therapeutics Peers Comparison

Overall Rating
UnderperformOutperform
Sector (52)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
52
Neutral
$89.20M-69.95%142.42%53.38%
52
Neutral
$5.24B3.76-41.88%2.85%17.01%0.78%
49
Neutral
$84.68M-58.80%-100.00%-24.28%
37
Underperform
$87.78M-54.09%-100.00%-26.44%
35
Underperform
$87.82M48.74%-1.60%
35
Underperform
$94.27M-70.13%1.27%
VOVOR
33
Underperform
$70.52M-94.52%2.98%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GALT
Galectin Therapeutics
1.36
-1.88
-58.02%
CRVO
CervoMed
9.38
-15.01
-61.54%
ANIX
Anixa Biosciences
2.63
-0.39
-12.91%
PLRX
Pliant Therapeutics
1.43
-11.98
-89.34%
VOR
Vor Biopharma
0.56
-1.29
-69.73%
HLVX
HilleVax, Inc
1.88
-11.60
-86.05%

Galectin Therapeutics Corporate Events

Product-Related AnnouncementsBusiness Operations and Strategy
Galectin Therapeutics Updates Investors on Clinical Trials
Positive
Mar 5, 2025

On March 5, 2025, Galectin Therapeutics announced the availability of its updated corporate presentation on its website, intended for use in investor and analyst meetings. The presentation highlights the company’s focus on advancing its clinical trials for Belapectin, which has shown promising results in reducing new varices in MASH cirrhosis patients and in cancer treatment when combined with checkpoint inhibitors. The company is also exploring potential partnerships and funding opportunities to support its ongoing research and development efforts.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.