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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
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31 Jul 15 05:57:27
Voted top trading group. http://t.co/5eVXN8RJLp Related: $MHR $VICL $MCP $GALE $XCO $GSAT
_JamisonG_
31 Jul 15 05:32:23
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30 Jul 15 19:37:09
$FCEL $FTR $GALE $GLUU $SIRI #pennystocks, Trade Long and short or long only, up to 1900% in profits since 2011 http://t.co/yipJpHSzxe $QQQ
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30 Jul 15 18:02:51
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30 Jul 15 18:01:48
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Mahmoud
30 Jul 15 15:19:04
"@AnalystRatingsNetwork Galena Biopharma's buy rating reiterated at Roth Capital. $8.00 PT. http://t.co/UBwzFNw7nj $GALE"
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WatchTheFunds
30 Jul 15 11:17:02
$GALE Institutional ownership up 13.89% Q/Q, with 7,747,510 net purchase http://t.co/xsraK4meAl http://t.co/KgFMI9blH5
FirstToMarkets
30 Jul 15 09:15:07
Galena Biopharma, Inc. Reiterated Rating by Roth Capital (Ranked 67th) to Buy with 8 PT $GALE #GALE http://t.co/O9TkoV1yws
Homegameralert
30 Jul 15 09:12:34
grabbing some $PSID, $ADXS, $KERX, $ANIP, $BONE, $ACHN, $EXEL, $GALE, $KITE, and $NVGN, take look small cap and great second half& pipelines
MarketBeatCom
30 Jul 15 09:12:14
Galena Biopharma's buy rating reiterated at Roth Capital. $8.00 PT. http://t.co/rfN7jNno6L $GALE #GALE
Ticker Report
30 Jul 15 09:11:37
Galena Biopharma Earns Buy Rating from Roth Capital $GALE http://t.co/k3DCYBoB0c
Dakota Financial
30 Jul 15 09:08:58
Galena Biopharma Earns Buy Rating from Roth Capital $GALE http://t.co/9vFxlDc9l6
US Consumer News
30 Jul 15 09:02:22
Galena Biopharma's buy rating reiterated at Roth Capital. $8.00 PT. http://t.co/QIDxURyu8Z $GALE #GALE
William Gerber
30 Jul 15 08:58:17
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Smarter Analyst
30 Jul 15 08:49:42
$GALE Here's Why Roth Capital Reiterated Buy on Galena Biopharma Inc (GALE) http://t.co/zsrHKkTaL4
Michael Cook
30 Jul 15 08:16:43
Our Stock Alerts Gained Over 550% This Month Already! See Our Huge New Pick Coming This Week: http://t.co/abs4Q0wdoH $ETEK $GALE $RSOL
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30 Jul 15 08:12:58
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Christos A
30 Jul 15 07:59:03
$GALE Tesaro inks license deal with Jiangsu Hengrui for exclusive distribution of rolapitant in China http://t.co/BTJfUI227T
Healthcare Stocks
30 Jul 15 06:52:15
Tesaro inks license deal with Jiangsu Hengrui for exclusive distribution of rolapitant in ... http://t.co/KPgXMVW83P $TSRO $GALE $HRTX $MRK
Breaking News
30 Jul 15 06:52:15
Tesaro inks license deal with Jiangsu Hengrui for exclusive distribution of rolapitant in ... http://t.co/bVoYbK5y9J $TSRO $GALE $HRTX $MRK
WatchTheFunds
30 Jul 15 06:46:02
$GALE Institutional ownership up 13.89% Q/Q, with 7,747,510 net purchase http://t.co/xsraK4meAl http://t.co/mkhYS8Y8HI
Stock Rocket
30 Jul 15 05:58:37
Intersting article about a new stock pick site. http://t.co/nU3hf3Cf56. Related: $MINE $GALE $VGTL $IGRW $ADMD $CVVIF $YGE
Christos A
30 Jul 15 05:41:10
"@TalkMarkets: Galena Biopharma Launches Anti-Nausea Drug Zuplenz $GALE http://t.co/VkVzSc32ap"
brian sweetheart
30 Jul 15 05:36:48
Voted top trading group. http://t.co/5eVXN8RJLp Related: $MHR $VICL $MCP $GALE $XCO $GSAT
TalkMarkets
30 Jul 15 00:09:01
Galena Biopharma Launches Anti-Nausea Drug Zuplenz $GALE http://t.co/B2oei4oi5u
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29 Jul 15 23:17:50
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29 Jul 15 23:15:17
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Michael James
29 Jul 15 23:14:01
After A MASSIVE 525% Gain On $GEQU, We Have A New Pick Ready! Special Update: http://t.co/wFGuoX67mX $ETEK $GALE $RSOL
Darren Goodwin
29 Jul 15 20:34:14
RT @MarketsRecap: Galena Biopharma Launches Anti-Nausea Drug Zuplenz $GALE http://t.co/cosyOs5bbZ
TalkMarkets Recap
29 Jul 15 18:09:05
Galena Biopharma Launches Anti-Nausea Drug Zuplenz $GALE http://t.co/cosyOs5bbZ
Stock Market Picks
29 Jul 15 17:35:14
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Michael Cook
29 Jul 15 16:25:37
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Paul Henry
29 Jul 15 16:22:42
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Michael James
29 Jul 15 16:22:38
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UNITY.
29 Jul 15 16:11:26
RT @OTCStockRocket: Intersting article about a new stock pick site. http://t.co/nU3hf3Cf56. Related: $MINE $GALE $VGTL $IGRW $ADMD $CVVIF…
WatchTheFunds
29 Jul 15 12:39:02
$GALE Institutional ownership up 13.89% Q/Q, with 7,747,510 net purchase http://t.co/xsraK4meAl http://t.co/mVPSCtrsKR
Stock Rocket
29 Jul 15 11:40:24
Intersting article about a new stock pick site. http://t.co/nU3hf3Cf56. Related: $MINE $GALE $VGTL $IGRW $ADMD $CVVIF $YGE
brian sweetheart
29 Jul 15 11:37:39
Voted top trading group. http://t.co/5eVXN8RJLp Related: $MHR $VICL $MCP $GALE $XCO $GSAT
Daniel Ward
29 Jul 15 11:35:31
I've seen a lot of $ABEO posts recently. Longs, why is Mark Ahn still involved after the $GALE fiasco?
TalkMarkets
29 Jul 15 11:31:24
Galena Biopharma Launches Anti-Nausea Drug Zuplenz $GALE http://t.co/B2oei4oi5u
Michael Cook
29 Jul 15 10:43:41
Our Stock Alerts Gained Over 550% This Month Already! See Our Huge New Pick Coming This Week: http://t.co/abs4Q0eCx9 $ETEK $GALE $RSOL
Michael James
29 Jul 15 10:38:36
After A MASSIVE 525% Gain On $GEQU, We Have A New Pick Ready! Special Update: http://t.co/wFGuoXnIev $ETEK $GALE $RSOL
				
				
By  +Follow February 14, 2014 5:26AM
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