Galena Biopharma Inc. (NASDAQ:GALE) Drug Development Continues

Galena Biopharma Inc. (NASDAQ:GALE)

Galena Biopharma Inc. (NASDAQ:GALE) shares fell 4.7% after the biopharmaceutical company announced the completion of patient enrollment in two NeuVax clinical trials. The company is investigating the drug in combination with Trastuzumab as a prevention for breast cancer recurrence in patients with no other treatment options.

According to the Chief Medical Officer, Bijan Nejadnik, completion of patient enrollment marks a major milestone on Neuvax development. Shareholders reacted negatively to the sentiments pushing the stock near all-time lows.

Galena Biopharma Inc. (NASDAQ:GALE) is trading in a strong downtrend after losing more than 70% in market value since the start of the year. The stock is currently trading at the lower end of its $0.35 – $ 0.38 trading range and close to its 52-week low of $0.26 a share.

Galena Biopharma Inc. (NASDAQ:GALE)

Neuvax is the company’s lead candidate drug expected to affect the stock’s direction of trade. A Phase 2b clinical trial of the drug has already enrolled 300 patients. Preliminary clinical trial results presented last year indicate that NeuVax in combination with trastuzumab remains well tolerated with no safety concerns.

“The combination of trastuzumab and NeuVax has been shown to be synergistic in preclinical investigation, and we believe could be an effective treatment to prevent breast cancer recurrence in patients with no other treatment options,” said Mr. Nejadnik.

GALE-401 Development Partnership

Separately, Galena Biopharma Inc. (NASDAQ:GALE) has reaffirmed its partnership with BioVascular Inc. for the development of GALE-401. The two companies have amended a previously signed license agreement to facilitate the development of the asset either through internal clinical development or by seeking a licensing partner.

GALE-401 is a controlled version of the approved drug anagrelide, for the treatment of elevated platelets in patients struggling with myeloproliferative neoplasms (MPNs). Given that it is a release formulation, GALE-401 is being developed with a view of reducing some of the side effects associated with anagrelide.

Galena Biopharma Inc. (NASDAQ:GALE) has already completed a majority of the work needed for the commencement of Phase 3 trials.

“GALE-401 is a Phase 3-ready asset, and this joint collaboration between Galena, SELLAS, and BioVascular endorses our mutual belief in the value of the program for patients with ET or other MPN disorders,” said Stephen F. Ghiglieri, Interim Chief Executive Officer.

According to BioVascular CEO, John H Parish, the combined company should be able to come up with a viable path for advancing the development of GALE-401.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

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About the author: Monica has an undergraduate degree in Accounting and an MBA she earned – with Honors. She has six years of experience in the financial markets and has been an analyst for the past two years.

Galena Biopharma Inc (NASDAQ:GALE) Drops Big on Merger Announcement

Galena Biopharma Inc (NASDAQ:GALE)

Galena Biopharma Inc (NASDAQ:GALE) stock is off over 27% after the company announced merger plans with privately-held SELLAS Life Sciences Group Ltd in an all-stock deal. The new company will be named SELLAS Life Science Group, Inc. Bothe Galena and SELLAS focus on developing late-stage, novel cancer treatments.

In late January, Galena Biopharma Inc (NASDAQ:GALE) was trading under $2.00 after having been above $45 earlier that same month and class-action law firms were seeking plaintiffs. They alleged that Galena made false and/or misleading statements and/or failed to disclose that: (1) Galena’s sales of Abstral were based on unsustainable sales and marketing practices; (2) such sales and marketing practices could subject Galena to a criminal investigation; and (3) consequently, Galena’s statements about its business, operations, and prospects were false and misleading and/or lacked a reasonable basis.

Subsequently, Galena Biopharma Inc (NASDAQ:GALE) announced that they were seeking strategic alternatives that would maximize shareholders value. As time went on, GALE shares slid to less than $1.

Under the terms of the merger agreement, existing SELLAS shareholders will receive newly issued shares of Galena common stock. Assuming that the merger is consummated, Galena stock and warrant holders are expected to own approximately 32.5%, and SELLAS shareholders will own approximately 67.5% of the combined.

The SELLAS board of directors unanimously approved the terms of the merger and a majority of SELLAS shareholders have voted in favor of the transaction. The proposed merger is expected to close in Q4 2017, subject to the formal approval of Galena Biopharma Inc (NASDAQ:GALE) stockholders and other customary closing conditions.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

Don’t miss out! Stay informed on $GALE and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading. Steve keeps his head in the game by looking for, and writing about, small companies that often get overlooked by the big investment firms.