Galecto shares drop 65% as biotech halts development of lung-disease treatment

Shares of Galecto Inc. GLTO dropped 65% in premarket trading Tuesday after the biotech company said it would drop an investigational treatment for idiopathic pulmonary fibrosis, a chronic lung disease. After the treatment, GB0139, failed to meet its primary trial endpoint, Galecto said it will discontinue development and focus instead on treatments for severe liver diseases. Oppenheimer analysts on Tuesday cut their price target for Galecto shares to $10, from $12 previously, but maintained an outperform rating on the stock, saying they’re “especially optimistic” about the sharpened focus on a treatment for NASH cirrhosis,…