Aileron Therapeutics acquires Lung Therapeutics, enhancing its portfolio with novel lung disease therapies. Post-acquisition, Aileron raises $18 million via private placement, earmarking funds for LTI-03’s Phase 1b trial for IPF treatment. Aileron’s management is bolstered by Dr. Brian Windsor, former Lung Tx CEO. The board integrates Lung Tx’s former directors, poised to drive forward the company’s strategic development and create value for stakeholders in addressing critical unmet medical needs.
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.
“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. We are thankful and appreciative of our board members, management team, and employees, both past and present, along with our investors for their support and commitment,” said Manuel Aivado, M.D., Ph.D., Chief Executive Officer of Aileron. “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.”
LTI-03 is a novel, Caveolin-1-related peptide with a dual mechanism targeting both alveolar epithelial cell (“AEC”) survival as well as inhibition of profibrotic signaling, whereas approved drugs for IPF such as nintedanib and treatments in clinical development for IPF have only demonstrated a reduction of profibrotic signaling. Studies conducted by Lung Tx and by third parties have demonstrated that Caveolin-1 is a key protein in the regulation of lung fibrosis and has a decreased expression in IPF patients. Lung Tx’s preclinical studies, including those of biopsied tissue from IPF patients, have demonstrated a decrease in numerous profibrotic signaling proteins, as well as the ability to protect AECs. IPF is a chronic lung disease characterized by progressive tissue scarring that prevents proper lung function. It is a progressive, fatal, age-associated lung disease affecting approximately 100,000 people in the United States. IPF typically presents in adults 65 or older and is usually fatal within two to five years after diagnosis. LTI-03 completed a Phase 1a clinical trial in healthy volunteers and is currently in a randomized, double-blind, placebo-controlled Phase 1b clinical trial in IPF patients.
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Management and Organization
Aileron will be led by its current management team consisting of Manuel C. Aivado, M.D., Ph.D., Chief Executive Officer, and Susan Drexler, M.B.A., C.P.A., Interim Chief Financial Officer, as well as Brian Windsor, Ph.D., former Chief Executive Officer of Lung Tx, who was appointed as President and Chief Operating Officer of Aileron. Dr. Windsor has 23 years of experience in the formation and execution of life science companies. He was the first employee of Lung Tx and led the company from 2013 to 2023. While at Lung Tx, Dr. Windsor spun out technology to form TFF Pharmaceuticals, which was listed on the Nasdaq in 2019. Before Lung Tx, he served as President of Enavail, a specialty pharmaceutical company. Dr. Windsor received both his B.S. and Ph.D. in molecular biology from the University of Texas at Austin.
“I am thrilled to join the management team of Aileron,” said Dr. Windsor, President and Chief Operating Officer of Aileron. “I look forward to working with Dr. Aivado and his team to continue the development of our programs at Aileron. I want to thank the board and entire team of Lung Therapeutics for all their hard work with this transaction.”
Following the transaction, Aileron’s board members will include former members of the board of directors of Lung Tx, William C. Fairey and Alan A. Musso, and current Aileron board members Josef H. von Rickenbach, who will serve as Chairman of the Board of Directors, Manuel C. Aivado, M.D., Ph.D., Chief Executive Officer, Reinhard J. Ambros, Ph.D., and Nolan Sigal, M.D., Ph.D.
Source: Biospace