Galena Biopharma Inc (NASDAQ:GALE), a biopharmaceutical company committed to the development and commercialization of targeted oncology therapeutics that address major unmet medical needs, announced it has entered into an agreement for the sale of its Zuplenz® (ondansetron) Oral Soluble Film product to Midatech Pharma Plc in a deal valued at up to $29.75 million, with $3.75 million cash upfront and up to $26 million in additional cash upon the achievement of certain sales milestones. In connection with the transaction, Galena will pay MonoSol Rx $900,000 of the upfront fee and 20% of any future milestone payments from sales of Zuplenz. The transaction is expected to be completed on or prior to Thursday, December 24, 2015, subject to customary closing conditions.
“With the closing of this transaction, we will have successfully completed our previously announced, planned divestiture of both of our commercial assets, garnering $10.85 million in cash upfront with the potential for an additional $25 million in future sales milestones from the two compounds,” said Mark W. Schwartz, Ph.D., President and Chief Executive Officer of Galena Biopharma. “With the sale of Zuplenz, we are now fully focused on advancing our high value cancer immunotherapy clinical development pipeline, which is led by our Phase 3 product candidate, NeuVax™.”
Mizuho Securities is acting as exclusive advisor to Galena Biopharma on this transaction. (Original Source)
Shares of Galena Biopharma closed yesterday at $1.48, down $0.04 or -2.63%. GALE has a 1-year high of $2.39 and a 1-year low of $1.10. The stock’s 50-day moving average is $1.55 and its 200-day moving average is $1.66.
On the ratings front, Galena has been the subject of a number of recent research reports. In a report issued on December 8, Cantor Fitzgerald analyst Mara Goldstein upgraded GALE to Hold, with a price target of $2, which implies an upside of 35.1% from current levels. Separately, on December 7, Oppenheimer’s Ling Wang reiterated a Buy rating on the stock and has a price target of $4.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Mara Goldstein and Ling Wang have a total average return of -2.3% and 0.7% respectively. Goldstein has a success rate of 41.3% and is ranked #2986 out of 3643 analysts, while Wang has a success rate of 39.4% and is ranked #1774.
The street is mostly Bullish on GALE stock. Out of 5 analysts who cover the stock, 4 suggest a Buy rating and one recommends to Hold the stock.
Galena Biopharma Inc, is a biopharmaceutical company focused on developing and commercializing targeted oncology therapeutics that address medical needs across the full spectrum of cancer care.