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Galena Biopharma (GALE) Plunges as Concerns over Scandal Continue

By  +Follow February 14, 2014 5:26AM
Tickers Mentioned:

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
Companies in News
1 Sep 14 08:22:03
$GALE: Galena Fires CEO Ahn, Offers No Parting Gifts http://t.co/BprlWblGTA http://t.co/p8jS6Bi2ki
Adam Cole
1 Sep 14 08:05:09
Hope everybody is having a nice Labor Day! Gotta go enjoy life, especially on days the market is closed 😃 $GERN $GALE $RTRX $ZGNX $DRL $GRPN
Orbis Tertius
1 Sep 14 06:54:42
@BanDaviK @IbizaInside @FranFuoRiOraRiO $GALE
Captain Future
1 Sep 14 06:31:54
$GALE $CYTR LAtimes "I am not sure there is an easy way to get around that as long as the perception is there." http://t.co/pBLEBR6hdQ
Matthew McBride
1 Sep 14 03:27:39
Will be watching $ONCS today, $INO and $GALE as well.
1 Sep 14 00:26:08
@Chilasin top pick for the week. Strong Buy Coverage: $GALE $GURE $GENE $VII, $JRJC, $HGSH
PennyStock Zone
31 Aug 14 19:10:46
I am a VERY HAPPY subscriber to SUPERTRADES service check it out http://t.co/Ho9ydXHTWl $gale $twtr $aapl $lnkd $wfm $bac $cbis $mu #stocks
Business Headlines
31 Aug 14 14:21:53
$GALE: Earnings Reaction History: Galena Biopharma, Inc., 66.7% Follow-Through ... http://t.co/mbx7iiPMJP http://t.co/YHA2IzOTpI
Stock Market Monitor
31 Aug 14 13:21:46
$GALE: Galena 'stands little chance' of improving Zuplenz sales, TheStreet says http://t.co/fbE0X9hVLc http://t.co/uCvl4BarVp
PennyStock Zone
31 Aug 14 13:06:36
I am a VERY HAPPY subscriber to SUPERTRADES service check it out http://t.co/Q6vtkuSPbk $gale $twtr $aapl $lnkd $wfm $bac $cbis $mu #stocks
31 Aug 14 09:50:52
@brucesusel maybe with AHN gone $GALE can make a move -- i think RANTE is definitely a paid pumper -- can't trust him for anything
PennyStock Zone
31 Aug 14 05:43:47
I am a VERY HAPPY subscriber to SUPERTRADES service check it out http://t.co/Ho9ydXHTWl $gale $twtr $aapl $lnkd $wfm $bac $cbis $mu #stocks
Forex Insight
30 Aug 14 20:25:04
RT @CliffatMIG: $GALE: Stocks Alert – Hewlett-Packard Company (NYSE:HPQ), Galena Biopharma Inc ... http://t.co/cZ5fiPi33c http://t.co/xOKzO…
Stock News Headlines
30 Aug 14 20:21:50
$GALE: Stocks Alert – Hewlett-Packard Company (NYSE:HPQ), Galena Biopharma Inc ... http://t.co/cZ5fiPi33c http://t.co/xOKzOiOV9t
30 Aug 14 09:05:07
$GALE Information for Galena Biopharma, Inc. From our Stock News Alerts App
Stocks in News
29 Aug 14 19:21:58
$GALE: Q2 2014 Galena Biopharma Inc Earnings Release - After Market Close http://t.co/Q4xMjtswQF http://t.co/7tMttjHySH
Business News Watch
29 Aug 14 18:21:56
$GALE: Galena Biopharma Reports Second Quarter 2014 Results http://t.co/qy8e00S9W6 http://t.co/XjAHRvmyo5
Stock Signaling
29 Aug 14 18:01:33
Movers and Shakers: $GRPN $FCEL $ECYT $SPLK $RFMD $TWTR $MNK $TKMR $PEIX $FEYE $LIVE $CIEN $AMBA $GALE $HERO http://t.co/Vtx6dLy0Nw #stocks
29 Aug 14 12:23:32
RSII shot up over 100% today! Major Update: http://t.co/GMnQioznZp $ETEK $GALE $RSOL
PennyStock Zone
29 Aug 14 12:07:07
I am a VERY HAPPY subscriber to SUPERTRADES service check it out http://t.co/Ho9ydXHTWl $gale $twtr $aapl $lnkd $wfm $bac $cbis $mu #stocks
29 Aug 14 10:46:34
@DoctorTranRI360 Although $GALE didn't do themselves any favors either...still, pretty convincing timeline of events on that one.
29 Aug 14 10:45:26
@DoctorTranRI360 I have a suspicion he and his cronies trashed $GALE as well, among others.
Financial News
29 Aug 14 10:22:12
$GALE: Galena Gives Sales Team Another Useless Product to Promote http://t.co/48Dp8fwSTF http://t.co/YHqMEAxzj8
PennyStock Zone
29 Aug 14 10:15:10
I am a VERY HAPPY subscriber to SUPERTRADES service check it out http://t.co/Ho9ydXHTWl $gale $twtr $aapl $lnkd $wfm $bac $cbis $mu #stocks
29 Aug 14 09:09:24
29 Aug 14 07:46:06
Most Popular Tweets Relevant to $GALE (GALENA BIOPHARMA INC symbol GALE) on 08/29/2014 http://t.co/3QPd2bRtPN
Clark W. Griswold
29 Aug 14 06:10:03
Joshua Payne
29 Aug 14 06:09:15
29 Aug 14 06:08:33
K. Trox
29 Aug 14 06:05:53
29 Aug 14 05:28:28
Another sell side shill flees $GALE sinking ship. JMP's Jason Butler finally gives up on the name. Guess they didn't get the banking biz.
29 Aug 14 04:50:45
Galena Biopharma’s Positive Rating Reiterated at MLV & Co $GALE http://t.co/ALTs6RRgDe
Bulls vs Bears
28 Aug 14 18:22:14
$GALE: Galena Biopharma Appoints Mark W. Schwartz, Ph.D., as President and Chief ... http://t.co/GC3AAuOQMl http://t.co/fGyDnTDDKF
Stock Signaling
28 Aug 14 18:01:12
Movers and Shakers: $RFMD $TWTR $MNK $TKMR $PEIX $FEYE $LIVE $CIEN $AMBA $GALE $HERO $ARO $YGE $BAS $EXAS http://t.co/Vtx6dLy0Nw #daytrading
28 Aug 14 16:48:11
http://t.co/hjgLwIcNgz DennyT: GALE Insider Disclosure $GALE $SH $GPRO $ECA.TO: DennyT http://t.co/yO9mr32ScT http://t.co/hjgLwIcNgz
28 Aug 14 16:48:10
http://t.co/QkCFZ8H3V8 DennyT: GALE Insider Disclosure $GALE $SH $GPRO $ECA.TO: DennyT http://t.co/gcVNvpaSPx http://t.co/QkCFZ8H3V8
28 Aug 14 13:16:23
$VIIC ran up 720% Today in an explosive move! Our new picks are coming soon: http://t.co/86hsEuqG18 $ETEK $GALE $RSOL
28 Aug 14 12:15:15
RT @jatdo1: @fazoinnorcal I have no position now like $gale but will get back in when timing is favorable. Dennis Quade Signing out bro. Ha…
28 Aug 14 12:14:20
@fazoinnorcal I have no position now like $gale but will get back in when timing is favorable. Dennis Quade Signing out bro. Have a good one
Stocks in News
28 Aug 14 11:21:55
$GALE: Galena CEO Fired Following Stock-Promotions Scandal http://t.co/oevqmBjd8X http://t.co/AGfNCUMpuP
Wall Street Monitor
28 Aug 14 10:22:01
$GALE: Galena CEO Fired Following Stock-Promotions Scandal http://t.co/WoNZw4ZiJB http://t.co/3vKcOLDEoA
28 Aug 14 09:54:53
$AKS alot of talk going around about this one $GALE $XLY $XLB $RFMD $USO http://t.co/CSdHdknSJX
28 Aug 14 09:07:07
$AEM Current Price $AEM Most recent stock chart and technical analysis. $XLV $QIHU $QCOM $GALE $SSO $FITX http http://t.co/QLzRxJ7Na9
Extreme Stocks
28 Aug 14 08:54:44
DennyT: GALE Insider Disclosure $GALE $SH $GPRO $ECA.TO http://t.co/ucDt6ShoII
28 Aug 14 08:49:58
http://t.co/Vv1sYDyeQn DennyT: Cheeky's Board!: GALE Insider Disclosure $GALE $SH $GPRO $ECA.TO http://t.co/e4867uixaY
Investors Hangout
28 Aug 14 08:48:35
DennyT: GALE Insider Disclosure $GALE $SH $GPRO $ECA.TO http://t.co/JX92m6610S
Investors Hangout
28 Aug 14 08:48:14
DennyT: GALE Insider Disclosure $GALE $SH $GPRO $ECA.TO http://t.co/fYVKc1GMIx
28 Aug 14 08:35:55
$KORS Michael Kors Holdings Limited (KORS) 81.34 -1.00 (-1.21%) $GALE $SH $V http://t.co/nkTJi0YMtD
Financial News
28 Aug 14 08:22:09
$GALE: Q2 2014 Galena Biopharma Inc Earnings Release - After Market Close http://t.co/bJZ0FWeolE http://t.co/mSxIarue9M
28 Aug 14 08:08:15
Galena Biopharma Given Positive Rating at MLV & Co $GALE http://t.co/ZAHnUrLKFp
By  +Follow February 14, 2014 5:26AM



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