Galectin Therapeutics Inc. (GALT)

[biotech2010]

There is a big difference between an unproven drug having therapeutic effects on a disease (such as GR-MD-02 on psoriasis and atopic dermatitis) and the drug 'working' (fully proven, via full FDA Phase 3 registration trial).

Proving a drug works not only means showing the therapeutic effects but reaching a defined end point (per the clinical trial design) on enough patients to convince the FDA that the drug can be approved for sale. Even if the CX trial is successful it will be multiple years (and probably another $50M in expenses) before anyone could say, 'the drug works'.

All GALT has done is show that GR-MD-02 is both safe and has at least some therapeutic effect on several diseases, it is not even close to proving that the drug works and that's why, because of all of the company and management issues, the stock is $1.17 today.

Unless the CX trial reaches a statistically significant end point in December or a white knight decides that GR-MD-02 has shown enough potential to justify the acquisition of GALT prior to those study results it won't matter how much potential the drug has, both the drug and company will be history as will our investments.