Denmark-based biotechnology company Galecto (GLTO) has been making some progress on developing treatments for diseases such as fibrosis and cancer. The stock has gained 18.7% over the past month. But can it keep ascending? Let’s find out.Headquartered in Copenhagen, Denmark, clinical-stage biotechnology company Galecto, Inc. (GLTO) is known for its lead candidate GB0139, which is being developed for the treatment of severe fibrotic lung diseases such as idiopathic pulmonary fibrosis (IPF). Also, in April, the company published a paper in Gastric Cancer that highlighted the key role galectin 3 plays in gastric cancer.
However, all GLTO’s candidates, including GB2064 and GB1211, are in early stages of development. Its stock has declined by nearly 59% over the past six months and 30.6% over the past three months to close yesterday’s trading session at $5.77. But its 18.7% returns over the past month indicate investors’ optimism about GLTO’s progress on the pipeline candidates.
Overall, investors’ interest in the biotech space has been growing, as evidenced by the iShares Nasdaq Biotechnology ETF’s (IBB) 5.8% returns over the past month compared to the SPDR S&P 500 Trust ETF’s (SPY) 1.3% gains. However, GLTO may not be able to continue rallying given its weak financials.