Cantor Remains Cautious on Galena Biopharma Inc Following 4Q Earnings


In a research report issued today, Cantor analyst Mara Goldstein maintained a Sell rating on Galena Biopharma Inc (NASDAQ:GALE) with a $2.00 price target, following the company’s fourth-quarter results, posting earnings of ($0.06) per share on revenues of $3.2 million, which were above Goldstein’s estimate of $2.0 million and FactSet consensus of $2.5 million.

Goldstein noted, “Commercial dynamics improved, but we still expect quarterly fluctuations. Prescriptions through the first eight weeks of 2015 (Symphony Health Solutions) show a decline of 27% from the first eight weeks of 4Q:14. Given 3Q:14’s inventory de-stocking and the phase-out of the voucher program that inflated prescriptions relative to dollars collected, we expect that quarterly numbers will bounce around. Despite the strong 4Q:14 number, we have little conviction on persistence of growth, and that drives our caution. We do, however, like the dynamic of increasing revenue per prescription, a function of improved mix of doses prescribed.”

Furthermore, “In spite of beginning signs of pipeline visibility our SELL rating on the shares comes from our concerns surrounding shareholder lawsuits/SEC investigation, patent challenge on ABSTRAL and lack of consistency from ABSTRAL sales, in the absence of meaningful clinical data from pipeline products, and the likely need for additional funding.”

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Mara Goldstein has a total average return of 25.7% and a 72.7% success rate. Goldstein has a 36.6% average return when recommending GALE, and is ranked #182 out of 3505 analysts.

 

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