MLV analyst Vernon Bernardino weighed in today with a few insights on Galena Biopharma (NASDAQ:GALE), following discussions with management during the J.P. Morgan healthcare conference, which took place last week in San Francisco. The analyst rates the stock a Buy with a $5 price target, which implies an upside of 184% from current levels.
Bernardino said, “Regarding milestones for 2015, we conclude that guidance—i.e., Abstral (fentanyl) will be accretive and the Zuplenz (odansetron) launch will result in 50% yr/yr overall revenue growth—is a challenge that can be met. With >1 year experience marketing Abstral, we believe GALE is in a strong position to achieve its goal of establishing its in-market, oncology-targeted products ahead of anticipated approval of NeuVax (breast cancer), GALE-301 (ovarian and endometrial cancer) and GALE-401 (essential thrombocythemia). We believe the stock is attractive and therefore reiterate our Buy rating.”
The analyst added, “When FY14 results are reported in March, we anticipate that Galena will handily deliver on our ’14 revenue projection of $9MM, which is in line with guidance of $8-$10MM. We believe GALE is near completion of Zuplenz pre-launch activities and on track for a 1Q15 launch. As our research finds that odansetron is periodically in short supply in the US, and with the launch of Abstral a successful demonstration of GALE’s commercialization capabilities, we believe our $1MM Zuplenz revenue projection and $16MM Abstral revenue projection are well within the company’s guidance for overall revenues of $15-$18MM.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Vernon Bernardino has a total average return of -16.0% and a 27.6% success rate. Bernardino has a -23.4% average return when recommending GALE, and is ranked #3357 out of 3428 analysts.