Biotech Beat: Cantor Weighs In On Oncothyreon Inc (USA) (ONTY) and Galena Biopharma Inc (GALE)

Cantor analyst Mara Goldstein weighed in today on the cancer therapeutics company Oncothyreon Inc (USA) (NASDAQ:ONTY) and biotech company Galena Biopharma Inc (NASDAQ:GALE), with neutral ratings. The analyst reflects on Oncothyreon’s ONT-380 program update, and Galena’s recent lawsuits settlement.

Oncothyreon Inc (USA)

Shares of Oncothyreon were hammered today after the company announced additional analysis from its ONT-380 program in metastatic breast cancer, which appears to have caused more confusion than clarity.

Subsequently, Goldstein reiterated a Hold rating on the stock, while reducing the price target to $3.00 (from $4.00), which represents a potential upside of 39% from where the stock is currently trading.

Goldstein commented, “The reason for the confusion has to do with the way the data were reported, making it difficult to accurately assess whether the information from the enlarged data set versus the last disclosure looked better, the same, or worse. We think on balance the data look supportive, but perhaps trending more toward consistent as opposed to better, and that is likely viewed as a disappointment. We think this drop is recoverable, but our fundamental view on the shares has been that the value of ONT-380 is fairly reflected in the valuation, with a slightly elevated risk profile, prompting us to trim our PT to $3.00.”

According to, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Mara Goldstein has a total average return of -3.4% and a 37% success rate. Goldstein is ranked #3171 out of 3640 analysts.

Galena Biopharma Inc

Goldstein upgraded shares of Galena Biopharma from a Sell to a Hold rating, while keeping the price target at $2.00, which implies an upside of 32.5% from current levels. Goldstein has a yearly average return of 35% when recommending GALE.

The analyst noted, “The settlement of two consolidated lawsuits removes an overhang on the shares, and the combination of this plus the jettisoning of the commercial business provides for an improved outlook, in our view, and the basis for our upgrade to HOLD from SELL. However, a backdrop of a reasonably valued PRESENT trial and the likely need for additional cash in 2016 keeps us from being more constructive on the shares.

“With a modest cash payout from the lawsuit and the addition of $8 million from the recent divestiture of Abstral (another $4 million is possible), Galena’s cash will go up modestly ($35 million reported as of 9/30/15). We expect that Galena will seek additional cash in 2016, and thus not surprisingly, a $100 million shelf registration was announced on the heels of this settlement news,” the analyst added.

Out of the 5 analysts polled by TipRanks in the last 3 months, 4 rate Galena Biopharma stock a Buy, while 1 rates the stock a Hold. With a return potential of nearly 217%, the stock’s consensus target price stands at $4.75.



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