Four months after its board of directors began dissolving the company, Galera Therapeutics secured a lifeline by acquiring Nova Pharmaceuticals, a privately held biotechnology firm, in an all-stock transaction, writes John George for the Philadelphia Business Journal.
Following the acquisition, the Malvern biopharmaceutical company will shift its focus to cancer therapies.
Nova Pharmaceuticals, based in New York, is working on an experimental therapy aimed at combating highly treatment-resistant breast cancer.
The newly merged entity will operate as Galera Therapeutics, with Dr. Mel Sorensen remaining as CEO and Joel Sussman continuing as Chief Accounting Officer.
To support the acquisition, a syndicate of investors led by Ikarian Capital invested $2.89 million in Galera common stock. Combined with Galera’s existing cash reserves of approximately $11 million, the proceeds will sustain company operations through 2026.
“We’ve been trying to find a path forward for quite a while and we finally found a route,” said Sorensen. “We think this gives us the potential for growth.”
Nova’s experimental breast cancer therapy, being developed collaboratively with researchers at Houston Methodist Hospital in Texas, is currently undergoing multiple early-stage clinical trials.
Read more about Galera Therapeutics acquiring another company in the Philadelphia Business Journal.
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