Aileron Therapeutics, Inc. has announced its acquisition of Lung Therapeutics. Financial terms of the deal were not disclosed.
Lung Therapeutics is a clinical-stage biopharmaceutical company developing novel therapies for underserved, life-threatening lung conditions. The Lung Therapeutics pipeline features leading programs LTI-01 and LTI-03, two candidates that indicate a novel way to treat lung diseases.
Aileron Therapeutics is a chemoprotection oncology company focused on the clinical development of its lead product candidate, ALRN-6924, to protect cancer patients against chemotherapy-induced toxicities.
Following the acquisition, Aileron entered into a definitive agreement for the sale of shares of Aileron’s Series X non-voting convertible 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, 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.
Ladenburg Thalmann & Co. Inc. is serving as exclusive financial advisor to Aileron and Wilmer Cutler Pickering Hale and Dorr LLP is serving as legal counsel. Cozen O’Connor P.C. is serving as legal counsel to Lung Therapeutics and Clear Street LLC is serving as financial advisor.
According to data captured in the LevinPro HC database, this acquisition represents the 136th Biotechnology transaction of the year.
