Galena Biopharma Inc (GALE) Hires Canaccord Genuity to Advise on Strategic Alternatives


Galena Biopharma Inc (NASDAQ:GALE) announced it has engaged Canaccord Genuity, Inc. as its financial advisor to assist in the previously announced strategic alternative review process.

Potential strategic alternatives may include a sale of the company, a business combination, a merger or reverse merger with another party, continuing to advance the clinical programs as a stand-alone entity, and a license or other disposition of corporate assets of the Company.  The Company stated that there can be no assurance that this strategic review process will result in a transaction.  Galena has not set a timetable for completion of the review process, and it does not intend to comment further regarding the strategic review process unless a specific transaction is approved by its Board of Directors and signed, the strategic review process is concluded, or it is otherwise determined that further disclosure is appropriate or required by law.

Galena’s clinical assets include:

  • A hematology asset, GALE-401, which is a controlled-release formulation of the approved drug anagrelide
    – Phase 3-ready program with an FDA confirmed 505(b)2 regulatory pathway in essential thrombocythemia
  • An immuno-oncology franchise targeting prevention of recurrence in breast and ovarian cancer with limited competition in each indication
    – NeuVax™ (nelipepimut-S) – Three Phase 2, co-funded investigator sponsored trials ongoing in adjuvant breast cancer
    – Phase 2b, 300 patient trial expected to complete enrollment in Q2 2017, and interim efficacy readout in Q4 2017
    – GALE-301 & GALE-302 – Early stage trials completed targeting ovarian cancer

On March 15, 2017, Galena will issue its financial results for the fourth quarter and year-end 2016.

Shares of Galena are up nearly 5% to $0.63 in pre-market trading Thursday. GALE has a 1-year high of $49.80 and a 1-year low of $0.21. The stock’s 50-day moving average is $1.09 and its 200-day moving average is $1.21.

On the ratings front, Galena has been the subject of a number of recent research reports. In a report issued on February 6, FBR analyst Vernon Bernardino downgraded GALE to Hold, with a price target of $4.00, which implies an upside of 566% from current levels. Separately, on February 2, Maxim’s Jason McCarthy downgraded the stock to Hold.

According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Vernon Bernardino and Jason McCarthy have a yearly average loss of -10.2% and -12.5% respectively. Bernardino has a success rate of 30% and is ranked #4408 out of 4514 analysts, while McCarthy has a success rate of 34% and is ranked #4410.

Galena Biopharma, Inc. is a biopharmaceutical company committed to the development and commercialization of hematology and oncology therapeutics that address unmet medical needs. The company focuses on identifying and advancing therapeutic opportunities to improve cancer care from direct treatment of the disease to the reduction of its debilitating side effects. Its products include Abstral sublingual tablets and Zuplenz oral soluble film.

 

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