Galena Biopharma Inc (NASDAQ:GALE), a biopharmaceutical company developing and commercializing innovative, targeted oncology therapeutics that address major medical needs across the full spectrum of cancer care, announced the pricing of an underwritten public offering of 24,358,974 units at a public offering price of $1.56 per unit, for total gross proceeds of $38.0 million. Each unit consists of one share of common stock and a warrant to purchase 0.5 of a share of common stock at an exercise price of $2.08 per share. The warrants are immediately exercisable and expire on the fifth anniversary of the date of issuance. The shares of common stock and warrants are immediately separable and will be issued separately.
The offering is expected to close on March 18, 2015, subject to customary closing conditions. Galena has granted the underwriters a 30-day option to purchase up to an additional 3,653,846 shares of common stock and/or additional warrants to purchase up to 1,826,923 shares of common stock to cover over-allotments, if any.
Raymond James & Associates, Inc. is acting as the sole book-running manager for the offering. Roth Capital Partners is acting as lead manager, and Maxim Group LLC, MLV & Co. LLC, and Noble Life Science Partners are acting as co-managers.
The company intends to use the net proceeds from this offering to fund its operations, including the ongoing commercialization of Abstral® (fentanyl) Sublingual Tablets and Zuplenz® (ondansetron) Oral Soluble Film, its ongoing Phase 3 PRESENT study and other clinical trials of its product candidates, and for other working capital and general corporate purposes. (Original Source)
Shares of Galena Biopharma closed yesterday at $1.73 . GALE has a 1-year high of $3.58 and a 1-year low of $1.43. The stock’s 50-day moving average is $1.74 and it’s 200-day moving average is $1.86.
On the ratings front, Galena has been the subject of a number of recent research reports. In a report issued on March 10, Noble Financial analyst Rahul Jasuja maintained a Buy rating on GALE, with a price target of $5, which represents a potential upside of 189% from where the stock is currently trading. Separately, on March 9, Needham’s Chad Messer 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, Rahul Jasuja and Chad Messer has a total average return of -0.3% and -1.0% respectively. Jasuja has a success rate of 12.5% and is ranked 2585 out of 3511 while Messer has a success rate of 38.5% and is ranked 2792.
In total, one research analyst has rated the stock with a Sell rating, 5 research analysts have given a Buy rating to the stock. When considering if perhaps the stock is under or overvalued, the average price target is $1.73 which is 198.8% above where the stock closed yesterday.
Galena Biopharma Inc, is a biopharmaceutical company focused on developing and commercializing, targeted treatments that address unmet medical needs to advance cancer care.