Galera Announces Q1 2024 Financial Results and Corporate Updates

Galera Therapeutics, Inc., a clinical-stage biopharmaceutical company based in Malvern, PA, has reported its financial results for the first quarter ending March 31, 2024, and shared recent corporate updates. The company's primary focus is on developing novel therapeutics aimed at transforming radiotherapy in cancer treatment.

The company continues to evaluate strategic alternatives to maximize value for its stockholders. Potential strategies under consideration include mergers, asset sales, divestiture, licensing arrangements, or other strategic transactions. This review process is ongoing, with no fixed timeline for completion. Galera is collaborating with Stifel, Nicolaus & Company, Inc. to conduct a thorough review of these alternatives.

As part of its efforts to protect stockholder interests, Galera's Board of Directors adopted a limited duration stockholder rights agreement on May 3, 2024. This agreement aims to prevent any person or group from gaining control of the company without paying an appropriate control premium. It also allows the Board to make decisions that are in the long-term best interests of both the company and its stockholders. The rights agreement does not prevent the Board from considering any fair offer or proposal.

In terms of financial performance, Galera's research and development expenses dropped significantly to $1.5 million in the first quarter of 2024, compared to $7.3 million during the same period in 2023. This decrease is primarily due to reduced development costs for its product candidates avasopasem and rucosopasem, as the company has halted all clinical trial activities and suspended further development while exploring strategic options.

General and administrative expenses also saw a reduction, falling to $3.1 million in the first quarter of 2024 from $6.6 million in the same period in 2023. This decrease is attributed to the cessation of commercial preparations and medical affairs activities for avasopasem and a reduction in personnel-related expenses following a workforce reduction announced in August 2023.

The company's net loss for the first quarter of 2024 was $4.4 million, or $0.08 per share, down from a net loss of $17.7 million, or $0.50 per share, in the first quarter of 2023. As of March 31, 2024, Galera had $13.5 million in cash and cash equivalents. The company expects this amount will be sufficient to fund its operating expenses and capital expenditures through the third quarter of 2025.

Galera Therapeutics has developed a selective dismutase mimetic product candidate, avasopasem manganese (avasopasem), which was being developed to address radiation-induced and cisplatin-related toxicities. Avasopasem has received Fast Track and Breakthrough Therapy designations from the FDA for reducing severe oral mucositis induced by radiotherapy. The company’s second product candidate, rucosopasem manganese (rucosopasem), was aimed at enhancing the anti-cancer efficacy of stereotactic body radiation therapy in patients with non-small cell lung cancer and locally advanced pancreatic cancer. Rucosopasem has been granted orphan drug designation by both the FDA and EMA for treating pancreatic cancer.

In summary, Galera Therapeutics is focused on exploring various strategic alternatives to enhance stockholder value while managing its financial resources prudently. The company has scaled back its development activities and reduced expenses as it navigates this transitional period.