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MLV Comments On Galena Biopharma In Light Of Patent Infringement Litigation Against Actavis


In a research report published Thursday, MLV analyst Vernon Bernardino maintained a Buy rating on Galena Biopharma (NASDAQ:GALE) with a $5 price target, following today’s news that Galena partner, Orexo AB, filed a patent infringement lawsuit in the US against Actavis plc (NYSE:ACT) in response to the ACT’s Abbreviated New Drug Application (ANDA) to market and sell generic versions of Abstral (fentanyl sublingual tablets).

Bernardino commented: “We are confident in the strength of the listed US patents (6759059, 6761910, and 7910132), which specify mucoadhesion formulations with expiration dates in 2019, but with potential extension through 2024. Therefore, we make no changes to our models, which project $16MM in 2015 and $65MM in Abstral revenues by 2024. We believe ACT’s ANDA filing supports our thesis that Abstral is an important option for cancer patients with breakthrough pain, due to its more convenient route of drug delivery, and that our Abstral projections likely have significant upside, as Abstral revenues surpassed €60MM ($71MM) in 2014. We believe the stock attractive for speculative investors and therefore, reiterate our Buy rating.”

Galena Biopharma, Inc., a biopharmaceutical company, focuses on developing and commercializing oncology treatments that address major unmet medical needs to advance cancer care.