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Galena Biopharma (GALE) Plunges as Concerns over Scandal Continue

By  +Follow February 14, 2014 5:26AM
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Share in Galena Biopharma (GALE) plunged nearly 25 percent to begin trading Friday on heavy volume as the fallout from the company’s stock promotion scandal appears to continue. The sell-off appeared to break through a major technical barrier that had developed in recent months, causing the drop to pick up steam as the morning wore on.

GALE Hammered Again on Heavy Volume

Shares of Galena were moving fast on Friday morning as the stock went into freefall soon after the opening bell. Without any specific news appearing to drive the drop, the sell-off appears to be motivated by speculators, residual negative sentiment from Wednesday’s revelations that the company was paying a marketing firm to pump its stock, or some combination of both.

The fall paused briefly at 10 am after the stock reached $4 a share, a price that had been acting as a support level since mid-December. However, after circling the drain for about 15 minutes, the selling resumed and Galena appeared to break through said support level firmly. Shares then kept falling, reaching $3.30 a share before starting to bounce back just after 11 am.

Pipeline Must Produce

The good news for Galena investors is that the company currently has what appears to be a robust product pipeline in place. Oral pain treatment Abstral has already been approved for use in the market and was officially launched in October. However, some Galena shorts estimate that the drug’s 5 percent market share will ultimately only net $20 million to $30 million for Galena.

Meanwhile, the company also has three different drugs currently in various stages of development: NeuVax, GALE-401, and GALE-301, a Folate Binding Protein vaccine for ovarian and endometrial cancer patients. NeuVax is currently in two separate trials to test its efficacy in treating breast cancer (one is testing the drug in combination with Herceptin), with a third trial in planning to test its effect on gastric cancer patients.

Galena’s website describes NeuVax as follows: “NeuVax consists of the E75 peptide derived from HER2 combined with the immune adjuvant granulocyte macrophage colony stimulating factor (GM-CSF).  Treatment with NeuVax stimulates cytotoxic (CD8+) T cells in a highly specific manner to target cells expressing any level of HER2.  NeuVax is given as an intradermal injection once a month for six months, followed by a booster injection once every six months.”

Herceptin, which is only available as a treatment to a quarter of women affected by breast cancer, had revenues of $5 billion in 2010, giving Galena hope that sunnier days are around the corner. However, the recent revelations of stock promotion may place extra pressure on future clinical results for the company.

Noble Financial’s Endorsement Not a Timely One

The plummeting share price for Galena comes just two weeks after Noble Financial reiterated its buy rating on the stock and raised the price target from $4 to $6 a share.

“With improved pk metrics GALE-401 may be more effective without the tolerability/safety issues of Anagrelide-IR; could capture larger market share over HU; US sales potential of $150 to $200M; 8K new cases of ET each year and 80-100K prevalence in US ... Company has discussed with FDA, GALE-401 will be developed under 505b2 path for ET with Anagrelide-IR as reference drug; Phase 2 studies to begin shortly; could be on the market late 2017 or early 2018,” Analyst Rahul Jasuja noted.

Analysts have been kind to Galena in 2014, with two other analysts weighing in on Tuesday, Jan. 21. Maxim Group rated the stock a buy and raised its price target from $9 to $11, while Needham & Company increased their own price target to $9 a share. That makes five different research analysts rating the stock a buy, and the average price target for the company is $7.64 a share.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions.


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Results for GALE
DailyStockPicks
20 Nov 14 23:19:07
Cynapsus Therapeutics $CYNAF $CTH.V rose 15% today a day after the Phase 2 Study. $2.75 target http://t.co/5Vy1M3qBcv $DNDN $SRPT $GALE $MRK
Victor Roberts, MD
20 Nov 14 22:26:54
Commented on StockTwits: AF bashing $GALE ! Watchout, take profits regularly & Trade smart. Don't get carried awa... http://t.co/0XWTgwPpaw
Stockaholics
20 Nov 14 22:04:30
578% Gains On Penny Stocks in one month! Plus a New Pick Is Coming: http://t.co/2W3yKD2d5Q $ETEK $GALE $RSOL
Chet Stedman
20 Nov 14 21:23:50
$GALE cc: @skipjackrick Today In SA PRO: Wednesday, November 19 | Seeking Alpha http://t.co/TmQCcc1RmT
MAISA
20 Nov 14 20:44:20
$GALE_$1.86_announced today the execution of a purchase agreement for up to $55.0 million with Lincoln Park Capital Fund, LLC ("LPC")
WallStreetConsensus
20 Nov 14 17:48:40
PT Chg 11/20 $GALE, $EJ, $GOOG, $JBLU, $NORD, $SMRT, $CRM, $ACT, $EPM, $PERY, $TXT, $ISIS, $DDD, $LB http://t.co/B4xB6Wzthy
alexander
20 Nov 14 17:35:08
$GALE 17.6% short Interest - next few weeks could be interesting ...
MAISA
20 Nov 14 16:19:34
$GALE Lincoln Park Capital Fund will initially purchase $5,000,000 in shares of Common Stock at a purchase price of $2.00 per share.
MAISA
20 Nov 14 16:19:05
$GALE entered into a purchase agreement with Lincoln Park Capital Fund, LLC to sell up to $55,000,000 in shares
Briefing.com
20 Nov 14 15:25:01
$GALE: Galena Biopharma announced the execution of a purchase agreement for up to $55.0 mln with Lincoln Park... http://t.co/6Bii7Os34o
Dave Neville
20 Nov 14 14:42:20
Galena Biopharma Announces Purchase Agreement for Up to $55.0 Million With Lincoln Park Capital Fund, LLC http://t.co/xNIgpQQjRy $GALE
Conf Call Tran
20 Nov 14 14:20:04
Galena Biopharma just filed a prospectus, suggesting it plans to soon issue some securities $GALE http://t.co/4LeabRWpX4
Conf Call Tran
20 Nov 14 14:20:04
Galena Biopharma, Inc. Announces Purchase Agreement For Up To $55.0 Million With Lincoln Park Capital Fund, Llc $GALE
Chet Stedman
20 Nov 14 14:13:40
RT @BuyersStrike: $GALE spins bs headlines about stock purchase @ $2 but buries the fact they had to bribe the investor w 631,221 free sha…
BuyersStrike
20 Nov 14 14:13:30
$GALE spins bs headlines about stock purchase @ $2 but buries the fact they had to bribe the investor w 631,221 free shares to enter deal.
William Gerber
20 Nov 14 13:57:42
@Skipjackrick @adamfeuerstein I don't understand! How is $GALE vulture material when #MLV rates it a BUY? ;-)
Dr. Paul DeSantis
20 Nov 14 13:48:04
RT @adamfeuerstein: $GALE accesses some vulture capital thru Lincoln Park Capital.
Adam Feuerstein
20 Nov 14 13:46:10
$GALE accesses some vulture capital thru Lincoln Park Capital.
William Gerber
20 Nov 14 13:32:16
@NathanAhron What's the matter- you don't trust #MLV's judgement on $GALE? ;-)
$Stocknewsalerts
20 Nov 14 13:31:41
$GALE New SEC Document(s) for Galena Biopharma, Inc. From our Stock News Alerts App
StockNews
20 Nov 14 13:28:27
$GALE - Prospectus Filed Pursuant to Rule 424(b)(5) (424b5) http://t.co/85z8GMK4Qb
Stocks News&Markets
20 Nov 14 13:28:25
$GALE - Prospectus Filed Pursuant to Rule 424(b)(5) (424b5) http://t.co/Z3JR31EXhg
NASDAQ
20 Nov 14 13:28:06
$GALE - Prospectus Filed Pursuant to Rule 424(b)(5) (424b5) http://t.co/i1T9h31kwd
StockNews
20 Nov 14 13:25:37
$GALE - Current Report Filing (8-k) http://t.co/DgOsAUff4N
Stocks News&Markets
20 Nov 14 13:25:36
$GALE - Current Report Filing (8-k) http://t.co/SziW3jcIda
NASDAQ
20 Nov 14 13:25:06
$GALE - Current Report Filing (8-k) http://t.co/Nvvr1mNf5A
NathanAaron
20 Nov 14 13:24:10
$gale lol
BV Healthcare
20 Nov 14 13:23:15
$GALE Galena Biopharma, Inc files Form 8-K (Events or Changes Between Quarterly Reports) SEC Filing.. http://t.co/geNu0JzkyQ
$Stocknewsalerts
20 Nov 14 13:22:42
$GALE Galena Biopharma Announces Purchase Agreement for Up to $55.0 Million With Lincoln Park Capital Fund, L From our Stock News Alerts App
Pharma 4 Life
20 Nov 14 13:06:40
$Gale MLV & Co Reiterates On Galena Biopharma As External Risks Have Subsided http://t.co/tRzEFZwJ92 via @YahooFinance
WKRB News
20 Nov 14 11:34:14
Galena Biopharma PT Raised to $5.00 $GALE http://t.co/ouLp1m4Bbc
The Legacy News
20 Nov 14 11:01:21
Galena Biopharma PT Raised to $5.00 $GALE http://t.co/ARsq3lZk8A
clayton
20 Nov 14 10:06:54
$GALE 1.86 http://t.co/yYavSyI0Qo
strader55
20 Nov 14 10:05:58
maytepper: $GALE We Believe Galena's Stock Is Attractive, Says http://t.co/41Qb6PHmVe
danrocks
20 Nov 14 10:04:01
$PEGI alot of talk going around about this one $SPLS $TWTR $GALE $LUV $CLDX http://t.co/doMOOaUiNa
Chet Stedman
20 Nov 14 09:58:44
@getbillasap #protio for starters I recommend the $GALE $AMRN and $MNKD feeds to start following exellent proven traders
Perfor Mance
20 Nov 14 09:51:09
Option Millionaires: maytepper: $GALE We Believe Galena's Stock Is Attractive, Says http://t.co/y7XsPWaBdH
Smarter Analyst
20 Nov 14 09:47:05
$GALE We Believe Galena's Stock Is Attractive, Says MLV; Raises PT To $5 http://t.co/JVrkcCrPVu
Sergius Paulus
20 Nov 14 09:04:58
$GALE could be one of those crazy biotech stocks that might double quite easily. http://t.co/4esCCv8LUL
US Banking News
20 Nov 14 07:38:38
Galena Biopharma PT Raised to $5.00 $GALE http://t.co/p8xM0euPNx
Andy
20 Nov 14 07:30:35
$spy buying more here of $gale and $gsat. not seeing those both names not going higher here till EOD. if not, swing.
strategynode
20 Nov 14 07:10:59
$Gale Could be a runner today In 1.86
Andy
20 Nov 14 07:03:37
$spy doubling expousre here as well on longs in $gale and $GSAT
Christos A
20 Nov 14 06:45:48
MLV & Co. Reiterates a Buy Rating on Galena Biopharma $GALE http://t.co/DaK6vnl47X""
The Legacy News
20 Nov 14 06:31:50
Galena Biopharma’s “Positive” Rating Reaffirmed at Roth Capital $GALE http://t.co/CRLZv6ujVe
Q Mavericks
20 Nov 14 06:25:17
my watch list for NOV 20 2014: $CZR $MBLY $WSM $BBBY $JKS $BDR $GALE $ARUN
Analyst Ratings
20 Nov 14 06:19:30
MLV & Co. Reiterates a Buy Rating on Galena Biopharma $GALE http://t.co/XdaHci3uQb
Analyst Ratings
20 Nov 14 06:19:29
MLV & Co. Reiterates a Buy Rating on Galena Biopharma $GALE http://t.co/XA2qWXptYn
Andy
20 Nov 14 06:08:14
$spy $gale MLV boosted price target today, new target 5 bux. clear buy, should move heavy today
Andy
20 Nov 14 06:04:04
$spy $gale long this name. 15 days to cover for shorts, Consensus Price Target: $6.20 (242.54% upside), 6 buy ratings, clear buy!!!
				
				
By  +Follow February 14, 2014 5:26AM
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