In a research report released Wednesday, FBR analyst Vernon Bernardino reiterated an Outperform rating on shares of Galena Biopharma Inc (NASDAQ:GALE), with a price target of $2.00, after the drug maker reported its second-quarter results and outlined its clinical development strategy for its pipeline. GALE ended 2Q16 with $19.6 million in cash, which could be adequate to achieve operational activities through mid-2017, according to Bernardino.

Bernardino wrote, “We think the negative results from PRESENT are priced into the stock and now point to the unrecognized value in the pipeline as reasons for considering GALE stock. More specifically, we estimate $1 per share value in GALE-401, the company’s Phase III ready product candidate for thrombocythemia. We also estimate the $1 per share in value in GALE-301/ GALE-302 for ovarian and endometrial cancers as undervalued.”

“Recall that combined safety data analysis presented in June at the annual European Hematology Association (EHA) Congress appeared to show GALE-401 as a much better version of anagrelide for essential thrombocythemia […] With >175,000 people affected annually and Orphan Drug potential, we estimate GALE-401 could target a significant market opportunity, supporting our view that GALE stock is undervalued.”

Galena shares are currently trading at $0.40, down $0.01 or 2.30%.

As usual, we recommend taking analyst notes with a grain of salt. According to, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Vernon Bernardino has a yearly average return of -11.3% and a 36% success rate. Bernardino has a -48.1% average return when recommending GALE, and is ranked #3997 out of 4124 analysts.

Out of the 6 analysts polled by TipRanks, 4 rate Galena stock a Buy, while 2 rate the stock a Hold. With a return potential of 499%, the stock’s consensus target price stands at $2.40.