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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
Eli Pritsker
4 Mar 15 20:45:49
RT @foolsgold91789: Watching 3/5 $AMRN $CORT $CRDS $GALE $GSAT $ISR $MTL $OCLS $PSTI $SFY $SIGA $SOL
foolsgold
4 Mar 15 20:40:50
Watching 3/5 $AMRN $CORT $CRDS $GALE $GSAT $ISR $MTL $OCLS $PSTI $SFY $SIGA $SOL
Eli Pritsker
4 Mar 15 20:33:47
RT @Bizquick: $GALE will present a corporate update at the 27th Annual ROTH Conference. March 9, 2015 at 8:00 a.m. PT/Ritz Carlton Hotel/La…
Eli Pritsker
4 Mar 15 20:33:23
RT @Bizquick: $GALE up 5.41% looking great going into the conference bro $2 intraday looking to break it and breakout!!!
Techno Analyst
4 Mar 15 20:19:20
@hustle2015 $GALE is moving gonna make bank here...LOTS lets go to $5
Hustle2015
4 Mar 15 20:17:37
@Bizquick Were on the $GALE train baby.
Techno Analyst
4 Mar 15 20:17:28
$GALE up 5.41% looking great going into the conference bro $2 intraday looking to break it and breakout!!!
Hustle2015
4 Mar 15 20:15:54
RT @Bizquick: $GALE will present a corporate update at the 27th Annual ROTH Conference. March 9, 2015 at 8:00 a.m. PT/Ritz Carlton Hotel/La…
Techno Analyst
4 Mar 15 20:15:46
$GALE possible release of key info at upcoming conference Mar 9th??? LETS GO!!!
Techno Analyst
4 Mar 15 20:15:06
$GALE will present a corporate update at the 27th Annual ROTH Conference. March 9, 2015 at 8:00 a.m. PT/Ritz Carlton Hotel/Laguna Nigel, CA.
Clark Joseph Kent
4 Mar 15 19:11:08
Earnings after Thursday’s close: $ADUS $ALDW $ALJ $ATSG $CKP $COO $DMD $DMND $EBS $ERII $ESL $FNSR $FRM $GALE
hhle
4 Mar 15 18:44:54
$GALE Buy!
Stock Rocket
4 Mar 15 18:22:00
Thanks to the 5 pro traders at http://t.co/5jbX6lWXsj for an amazing week! My win rate was 80%. So sweet. $AXAS $GALE $FNFG $BLDP
Stock Rocket
4 Mar 15 17:49:17
Our Stock Picks Gained 400% In 5 Weeks & Our New Pick Is Coming Tomorrow! Get It Early: http://t.co/iCLDxkVSvn $ETEK $GALE $RSOL
Stock Market Picks
4 Mar 15 17:26:45
Earnings Releases for March 5th (after the close): $ADUS $ALJ $ATSG $BPZ $CKP $COO $DMD $DMND $EBS $ERII $ESL $FNSR $FRM $GALE $HCI $ICEL
_JamisonG_
4 Mar 15 16:36:44
$GALE still under selling pressure but still closed up 7% on 400% daily volume. Looking for ST swing. http://t.co/osmXoPGqOA
Dakota Financial
4 Mar 15 16:00:05
Galena Biopharma $GALE Scheduled to Post Quarterly Earnings on Thursday http://t.co/hDltRyRBGt
StockNewsWires
4 Mar 15 15:17:12
$GALE: Galena Biopharma (GALE) to Release Quarterly Earnings on ...: http://t.co/BmIiJUOMf6
BreakingStocksNews
4 Mar 15 15:17:09
$GALE: Galena Biopharma (GALE) to Release Quarterly Earnings on ...: http://t.co/rICtgh5de2
US Banking News
4 Mar 15 15:13:32
Galena Biopharma to release Q414 earnings on Thursday. Analysts expect -0.11 EPS. $GALE http://t.co/9H0ACYAsTr
US Banking News
4 Mar 15 14:59:08
Galena Biopharma $GALE Scheduled to Post Quarterly Earnings on Thursday http://t.co/pL7UjR028o
Bob Dunk
4 Mar 15 14:17:39
Watching tomorrow (nows list) $AVEO $MSO $JOY $ACRE $DANG $GALE $HILL $HERO $ONVO $MCP $OREX $UGAZ $DGAZ
Phil Martin
4 Mar 15 13:29:02
$GALE http://t.co/vfQjIWGdXe
Hustle2015
4 Mar 15 13:19:57
$GALE 4 Strong Buy recommendations http://t.co/BiFHUGIctr
12Stocks.com
4 Mar 15 13:01:28
SmallCap #Stocks Trend $OREX $CLDX $SWHC $AMBA $DVAX $AEO $FLXN $OLN $ANN $SUPN $GALE $NLNK $ECOL more@ http://t.co/Giravo3fg9
PennyStocker
4 Mar 15 12:44:49
Wow the last pick from http://t.co/p3LC54H2W5 popped over 450%. Nice for being free. $GALE $NTEK $AG $VIP
Trader News Daily
4 Mar 15 12:23:34
Wow http://t.co/PeRPkYu8Uk just posted last weeks results. +429%. Crazy. They offer a free trial too. $BSBR $ARIA $GALE $NBG $MHR
Jasmin Barbeau
4 Mar 15 12:17:02
RT @sw33tLib3rty: $GALE any positive feedback on what their earnings are gonna look like?
Sw33t Lib3rty
4 Mar 15 11:57:49
$GALE any positive feedback on what their earnings are gonna look like?
Quantcha
4 Mar 15 11:49:48
Covered Call Alert: GALENA BIOPHARMA $GALE returning up to 22.70% through 17-Jul-2015 http://t.co/aIvDutP3lC
TennisGuy1
4 Mar 15 11:32:56
$GALE 3.2M Volume and still counting.
Drewski
4 Mar 15 10:16:59
$MSTX $GALE $LXRX own em, supposed pigs, just like $MACK a named Oinker by many smartypants at $2.50 now $12. Why I rarely listen anymore.
Drewski
4 Mar 15 10:08:33
RT @shaneblackmon: Can't believe I'm saying this... $GALE nice daily chart
Muhammad Shahwan
4 Mar 15 09:54:03
$GALE trust me im Engineering....+8.65% up http://t.co/52ZPcUfjCF
Chris Kelly
4 Mar 15 09:52:40
RT @equitiescom: Boston Therapeutics Inc (BTHE) Leads Small-Cap Stars in Early Trading for March 4 $GALE $SQBG $AVNW $SITO $BTHE http://t.c…
Matthew R.
4 Mar 15 09:44:11
@hustle2015 you taking this $GALE back to ATHs bro?
stt2318
4 Mar 15 09:43:36
$GALE nice breakout... updated chart http://t.co/GUpNvnLYpH
equities.com
4 Mar 15 09:42:52
Boston Therapeutics Inc (BTHE) Leads Small-Cap Stars in Early Trading for March 4 $GALE $SQBG $AVNW $SITO $BTHE http://t.co/nf76oPrOp9
_JamisonG_
4 Mar 15 09:41:59
I missed it because I was running but saw $GALE taking shape yesterday: https://t.co/DxgY8l9EwR (8% move) http://t.co/04meWm1e4O
PennyStocker
4 Mar 15 09:34:13
Wow the last pick from http://t.co/p3LC54H2W5 popped over 450%. Nice for being free. $GALE $NTEK $AG $VIP
moderneconomist.com
4 Mar 15 09:33:09
RT @BioRunUp: $GALE breaking out (froth continues with $XBI new all time highs)
Media Sentiment
4 Mar 15 09:29:56
$GALE received a new alert. Find out why at http://t.co/nZwqReM0tj #stocks #daytrading #trading #mkt #NYSE #NASDAQ #markets 267
Bioinvestor71
4 Mar 15 09:29:07
$gale - taking a starter position
Eli Pritsker
4 Mar 15 09:27:25
RT @sw33tLib3rty: $GALE new high @ 2.03 ......refer to my pic @Eli75NY lol
Sw33t Lib3rty
4 Mar 15 09:27:04
$GALE new high @ 2.03 ......refer to my pic @Eli75NY lol
BioRunUp
4 Mar 15 09:26:21
$GALE breaking out (froth continues with $XBI new all time highs)
Billy D.
4 Mar 15 09:23:01
$GALE $2
BallsyStocks
4 Mar 15 09:22:29
$VVUS and $GALE have been trading real nice the past few weeks. Is a short squeeze/rebound coming?
Hustle2015
4 Mar 15 09:11:55
$GALE weeeee
Techno Analyst
4 Mar 15 09:02:56
$GALE UP 6.76% looking to break $2s
				
				
By  +Follow February 14, 2014 5:26AM
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