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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. To read our full disclosure, please go to: http://www.equities.com/disclaimer


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Results for GALE
Mark Trader
27 Apr 15 16:45:13
Interesting new type of penny stock website reviewed at http://t.co/MMUEMgJlkv. Related: $NGD $SNTA $GALE $PMCB $DRYS $WSTI $AMRN
dailystockplays.com
27 Apr 15 16:02:24
Ichimoku Red http://t.co/RV27hh6IqF $EXXI $GALE $QSR $BBEP $FLS $OCLR $SFM $VNET $VNR $NVDQ $CTCT $NUV $PRI $WPRT $GIM $RRF $EMD $SDT
Stockaholics
27 Apr 15 15:34:55
We Have An Absolutely MASSIVE New Stock Pick Out! Get Early Access: http://t.co/P9qXvLUx4u $ETEK $GALE $RSOL
Penny Stockington
27 Apr 15 15:26:04
Our Winning Penny Stock Picks Gained Over 3115% In The Past 6 Months! Huge News: http://t.co/Lau579PuCR $ETEK $GALE $RSOL
Stock Rocket
27 Apr 15 14:50:25
Our Stock Pick On $THCZ Is Up 481.54% From Our Initial Release! Major News: http://t.co/bLXWVUwpQ7 $ETEK $GALE $RSOL
Your WallSt Reporter
27 Apr 15 14:26:35
MaximumPenny New Pick! The BIGGEST MJ Play of 2015 is $UBQU ! See link: http://t.co/GHbsfvaZqp $THCZ $NGCG � $ETEK $GALE $RSOL
zinvestmentz
27 Apr 15 11:33:27
RT @weedsglass: RT Zinvestmentz: RT $MJMD #edibles #Cannabis #HEMP $THCZ $FSLR $INTC $YHOO $MSFT $MDCN $AAPL $GALE $AMZN $PCLN #Weed3 $CAN…
ThePennyCommand.com
27 Apr 15 11:30:48
http://t.co/K2iVTlHFf2 stockweiser: $GALE Has alot going on its about to: stockweiser http://t.co/j13y1TiIcv http://t.co/K2iVTlHFf2
ThePennyCommand.com
27 Apr 15 11:30:47
http://t.co/K2iVTlHFf2 stockweiser: Then you should really take a look at $GALE.: stockweiser http://t.co/FoM1tHc5Sn http://t.co/K2iVTlHFf2
StockEarnings.com
27 Apr 15 10:15:46
$GALE Since last ER, stock dropped 27%. Will drop continue aftr ER on 5/7 After Close? http://t.co/GkmBZrfIDU
Curtis
27 Apr 15 09:23:59
Sold $GALE at $1.41 from $1.46
Mark Trader
27 Apr 15 07:12:09
Cool trading site I just found. https://t.co/T2poBg5XNW $PLUG $ACI DRYS $ALU $GALE $HOV $CPST $GERN $HL
Adam Feuerstein
27 Apr 15 05:14:30
Congrats to @davidsirota for his @SABEW BiB Award for excellent reporting on pension corruption. He beat my $GALE Dream Team stories :-(
Alp Bugra Basat M.D.
26 Apr 15 17:07:15
@chasingthealpha @AdamSinger Adam, this one is not $GALE or $INO and particularly CAR-T failure in solid tumor makes sense..
I'm Ron Burgundy?
26 Apr 15 12:26:53
RT @TNgCap: under 5 chart set up $SLTD 4.54 $MVIS 3.68 $SIRI 3.96 $LYG 4.88 $ARO 3.5 $GGB 3.63 $CTIC 1.96 $GALE 1.45 $GOL 2.82 $SNSS 2.69 $…
JayTrades
26 Apr 15 11:59:36
RT @TNgCap: under 5 chart set up $SLTD 4.54 $MVIS 3.68 $SIRI 3.96 $LYG 4.88 $ARO 3.5 $GGB 3.63 $CTIC 1.96 $GALE 1.45 $GOL 2.82 $SNSS 2.69 $…
TNgCapital
26 Apr 15 11:58:58
under 5 chart set up $SLTD 4.54 $MVIS 3.68 $SIRI 3.96 $LYG 4.88 $ARO 3.5 $GGB 3.63 $CTIC 1.96 $GALE 1.45 $GOL 2.82 $SNSS 2.69 $SALT 2.48
Mark Trader
26 Apr 15 07:53:44
Cool trading site I just found. https://t.co/T2poBgnyFu $PLUG $ACI DRYS $ALU $GALE $HOV $CPST $GERN $HL
Mark Trader
25 Apr 15 13:14:27
Cool trading site I just found. https://t.co/T2poBgnyFu $PLUG $ACI DRYS $ALU $GALE $HOV $CPST $GERN $HL
MAISA
25 Apr 15 09:35:11
$GALE Traders can look to buy GALE off weakness to anticipate that breakout and simply use a stop that sits right below support at $1.36/sh
$Stocknewsalerts
25 Apr 15 09:06:32
$GALE Information for Galena Biopharma, Inc. From our Stock News Alerts App
StockenheimerSchmidt
25 Apr 15 05:27:27
Platinum Members Saw Our Stock Alerts Gain Over 3100% In 6 Months! Subscribe Here: http://t.co/KjFX61Pd0S $ETEK $GALE $RSOL
Stock Rocket
25 Apr 15 05:12:32
Our Stock Pick On $THCZ Is Up 481.54% From Our Initial Release! Major News: http://t.co/bLXWVUeOrx $ETEK $GALE $RSOL
Penny Stockington
24 Apr 15 20:44:41
Our Winning Penny Stock Picks Gained Over 3115% In The Past 6 Months! Huge News: http://t.co/Lau57a75up $ETEK $GALE $RSOL
vivarod
24 Apr 15 20:15:15
Notice of Summons and Complaint Against Defendants Milla Bjorn a/k/a Kamilla Bjorlin and Lidingo … $GALE
Stock Dawgzz
24 Apr 15 20:02:41
Our Penny Stock Picks Gained 1472% In 2 Months! Get Access To Our New Pick: http://t.co/XxqN9MfSHf $ETEK $GALE $RSOL
Stockaholics
24 Apr 15 19:38:08
We Have An Absolutely MASSIVE New Stock Pick Out! Get Early Access: http://t.co/P9qXvMc7W2 $ETEK $GALE $RSOL
Stock Rocket
24 Apr 15 14:42:49
Our Stock Pick On $THCZ Is Up 481.54% From Our Initial Release! Major News: http://t.co/bLXWVUwpQ7 $ETEK $GALE $RSOL
StockNews
24 Apr 15 13:53:05
$GALE - Notice of Summons and Complaint Against Defendants Milla Bjorn a/k/a Kamilla Bjorlin and Lidingo LLC in http://t.co/PkAIufgDYW
Stocks News&Markets
24 Apr 15 13:53:04
$GALE - Notice of Summons and Complaint Against Defendants Milla Bjorn a/k/a Kamilla Bjorlin and Lidingo LLC in http://t.co/ElZcFJCRWx
NASDAQ
24 Apr 15 13:53:01
$GALE - Notice of Summons and Complaint Against Defendants Milla Bjorn a/k/a Kamilla Bjorlin and Lidingo LLC in http://t.co/tOnyeBBl3E
BuyersStrike
24 Apr 15 09:20:24
Keen readers of the newest piece by @BoydRoddy on reverse merger drug pushers $INSY will recognize Patrick Couch, he was a big $GALE fan too
Shark_Wicks
24 Apr 15 08:01:57
$IBB Biotech run is getting so toppy, there's nothing left to do but spread twitter rumors. I heard $GALE was going to buy $BIIB.
Mark Trader
24 Apr 15 07:44:58
Cool trading site I just found. https://t.co/T2poBgnyFu $PLUG $ACI DRYS $ALU $GALE $HOV $CPST $GERN $HL
Stoxline Investing
24 Apr 15 07:43:17
$GALE Could be providing a bottoming pattern. Technical strong buy. Six months target: 1.81. http://t.co/jJsmJCLQIv
ThePennyCommand.com
24 Apr 15 07:13:12
http://t.co/K2iVTlq3Qs AugustaFriends: $GALE daily and weekly charts: AugustaFriends http://t.co/6RvjhCB4kZ http://t.co/K2iVTlq3Qs
ThePennyCommand.com
24 Apr 15 07:13:11
http://t.co/K2iVTlq3Qs stockweiser: $GALE looking to breakout.: stockweiser http://t.co/4Io3L5YFDE http://t.co/K2iVTlq3Qs
Christos A
24 Apr 15 06:53:31
"@pierrules: $GALE Imagine that:) The Street now has a POSITIVE spin on $GALE. http://t.co/UedQs06Gty"
lucky swan
24 Apr 15 06:43:21
$GALE $8 PRICE TARGET BY ROTH SHOULD BE TRADING $2 + http://t.co/0R9T8rPS6h
Ryan Dominic Turso
24 Apr 15 06:41:23
Put this on your plate and eat it!! $GALE and #neuvax http://t.co/XNW9yoY3w5!! Going to be a steady climb up till EARNINGS May 7th!📈↗️⤴️🔝🔥👌🏽
Dave
24 Apr 15 06:35:53
Adding to $EHSK here. Could be heading for $.10+ Also watching: $ MJMD $AMD $AVXL $GALE $SNTA $GGB $MONIF $CYTX
Justin
24 Apr 15 06:33:05
RT @BillEvancho: $GALE ADAM F and The Street recommending? http://t.co/T2Si9t0Nn7
Bill Evancho
24 Apr 15 04:43:55
$GALE ADAM F and The Street recommending? http://t.co/T2Si9t0Nn7
Bill Evancho
24 Apr 15 04:21:10
$GALE http://t.co/T2Si9t0Nn7
options loja
24 Apr 15 03:19:46
RT @ACInvestorBlog: Stocks to keep an eye on April 24, 2015 http://t.co/lSN8IaMgIz $BBRY $CA $DGLY $GALE $IBIO $MEIP $SGMO
Dule Vuckovic
24 Apr 15 01:39:25
$RNN $GALE $NPK.To $BSX.To $DSF.To ....with each pop the others will get stronger and stronger http://t.co/AfRXHSjH7w
Mark Trader
23 Apr 15 18:41:46
Cool trading site I just found. https://t.co/T2poBgnyFu $PLUG $ACI DRYS $ALU $GALE $HOV $CPST $GERN $HL
OTPGroupLLC.com
23 Apr 15 17:45:57
#DOW http://t.co/vCpf2Iz035 biz money: $GALE CRAZY VOLUME LAST HOUR HURRY GET IT: biz http://t.co/cTJIef871R http://t.co/vCpf2Iz035 #OTC
BuyersStrike
23 Apr 15 17:41:05
@ChetStedman5 No stockpile of $MNKD, $GALE and $ADXS long dated OTM calls?
Penny Stock Secret
23 Apr 15 17:23:06
$71,000 in ONE TRADE!! By Follwing Their Signals More Info Here http://t.co/SVqoMkrw2z .. $ETEK $GALE $RSOL
				
				
By  +Follow February 14, 2014 5:26AM
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