Aileron Therapeutics Announces Acquisition of Lung Therapeutics
WALTHAM, Mass. and AUSTIN, Texas, Oct. 31, 2023 /PRNewswire/ -- Aileron Therapeutics, Inc. ("Aileron") (NASDAQ: ALRN) today announced it has acquired Lung Therapeutics, Inc. ("Lung Tx"), a privately held biopharmaceutical company focused on developing novel therapies for the treatment of orphan pulmonary and fibrosis indications that have no approved or limited effective treatments. Immediately following the acquisition of Lung Tx, Aileron entered into a definitive agreement for the sale of shares of Aileron's Series X non-voting convertible preferred stock (the "Series X preferred stock") and warrants to purchase shares of Aileron's common stock in a private placement to a group of accredited investors led by Bios Partners ("Bios"), and including Nantahala Capital, as well as additional undisclosed investors. The private placement is expected to result in gross proceeds to Aileron of approximately $18 million before deducting placement agent fees and other offering expenses. Aileron intends to use the proceeds from the private placement primarily to complete the ongoing Phase 1b clinical study of LTI-03, a Caveolin-1-related peptide in development for the treatment of IPF, and for general corporate purposes.
- and AUSTIN, Texas, Oct. 31, 2023 /PRNewswire/ -- Aileron Therapeutics, Inc. ("Aileron") (NASDAQ: ALRN) today announced it has acquired Lung Therapeutics, Inc. ("Lung Tx"), a privately held biopharmaceutical company focused on developing novel therapies for the treatment of orphan pulmonary and fibrosis indications that have no approved or limited effective treatments.
- "We are pleased to announce that after a thorough evaluation of strategic alternatives, we have completed the acquisition of Lung Therapeutics, which we believe represents a value-creation opportunity for Aileron's stockholders.
- "Lung Therapeutics has built a promising clinical-stage pipeline for life-threatening lung conditions, and we believe in the ability of our combined companies to deliver value to both patients and stockholders."
- I want to thank the board and entire team of Lung Therapeutics for all their hard work with this transaction."