Why Galecto (GLTO) Shares Are Down 27% Today
Portfolio Pulse from Henry Khederian
Galecto Inc (NASDAQ:GLTO) shares fell 27% to $8.50 after issuing shares to acquire rights to BRM-1420 from Bridge Medicines. The acquisition aligns with Galecto's strategic shift towards cancer and liver disease treatments. The transaction involves issuing common and preferred shares, with Bridge Medicines' CEO joining Galecto's executive team.
October 07, 2024 | 3:23 pm
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Galecto's stock dropped 27% following the issuance of shares to acquire BRM-1420, a move to strengthen its focus on cancer and liver disease. The dilution from new shares and strategic shift may have contributed to the stock's decline.
The issuance of new shares to acquire BRM-1420 likely led to stock dilution, causing the share price to drop. The strategic shift towards cancer and liver disease, while potentially positive long-term, may have created uncertainty in the short term.
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