Galectin Therapeutics gets new $10 million credit line from chairman Richard Uihlein

The new line

Galectin Therapeutics Inc. (Nasdaq: GALT) said on July 9, 2025 that it entered into a new $10 million unsecured line of credit with Richard E. Uihlein, chairman of its board and its largest individual stockholder. The company may borrow under the line at its discretion through April 30, 2026. Advances bear interest at the applicable federal rate for short-term loans, currently 4.05%, plus 2%. Principal and interest are due on September 30, 2026. The lender is Uihlein himself: the release names no bank, placement agent or financial advisor for the line.

Each draw is evidenced by a convertible promissory note. The notes convert into common stock at the closing price on the note date, but never below $3.00 per share. Galectin will also issue Uihlein up to 200,000 warrants, at 20,000 for each $1 million borrowed. Their exercise price will be 150% of the closing price on each draw date, with a floor of $3.00 and a cap of $10.00 per share.

The 8-K also extends the maturity of three existing $10 million convertible notes held by Uihlein, and of $81 million of borrowings under several earlier lines he provided, to September 30, 2026.

Chief Executive Joel Lewis said the new financing "is expected to cover projected expenditures through June 2026." He said the arrangement allows minimal dilution, but the release does not quantify that. The release also says Galectin "may not be able to continue receiving financial support" from Uihlein in the future. The release gives no cash balance and no quarterly spending figure, so it does not show how the line compares with the company's needs after June 2026.

The NAVIGATE trial

The company's 10-K for 2024, filed March 31, 2025, describes belapectin, a galectin-3 inhibitor, in patients with NASH cirrhosis and portal hypertension. The NAVIGATE trial randomized 357 patients in a Phase 2b/3 study to test whether belapectin prevents esophageal varices.

Top-line results were presented in December 2024. In the intent-to-treat population of 355, the incidence of varices fell 43.2% in the 2 mg/kg belapectin group compared with placebo, but the composite endpoint did not reach statistical significance. In the per-protocol population of 287, the reduction was 49.3%, against a targeted 52.5%. The per-protocol group was defined in advance as patients who completed 18 months of therapy with endoscopy at baseline and at 18 months.

The 10-K says FDA feedback led the company to analyze stage 1 of NAVIGATE as a stand-alone trial. It describes the safety profile as "highly encouraging," with serious adverse events comparable across cohorts and no drug-related serious adverse events reported in the trial. The company is also analyzing about 55 patients who completed 36 months of treatment before the trial ended in February 2025. The 10-K concedes that data from that group would not change the results for patients who completed 18 months, but says encouraging results could interest potential partners.

What comes next

The 8-K says the company is preparing to present data to the FDA in the fall of 2025 and is seeking partners to support further development and commercialization of belapectin in MASH cirrhosis. The release says the company's other clinical programs, in immuno-oncology for head and neck cancers and other malignancies, depend largely on finding a suitable partner.

Uihlein's financing therefore carries most of the near-term weight. The release does not say what the company will do if the September 30, 2026 maturities are not extended again, and it does not say how much of the $81 million or the three $10 million notes would need to be repaid or converted at that date.

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