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    Stock Alert for Galena Biopharma Inc. (GALE)

    Shares in Galena Biopharma Inc. (GALE) is a biopharmaceutical company engaged in the development of innovative, targeted oncology treatments that address major unmet medical needs to advance cancer care. The Company is pursuing the development of cancer therapeutics using peptide-based immunotherapy products, including its main product candidate, NeuVax (E75), for the treatment of various cancers. It is also developing Folate Binding Protein-E39 (FBP), a targeted vaccine aimed at preventing the recurrence of ovarian, endometrial, and breast cancers.

    Share Statistics (22-Mar-12)   FY

    2009

    FY

    2010

    %

    Chg

    Q3

    2010

    Q3

    2011

    %

    Chg

    Symbol GALE Revenue, $Mn 0 0 0 0
    Current price $2.31 Gross marg.
    52wk Range: $0.36-$3.54 Oper. margin
    Avg Vol (3m): 1653320 Net margin
    Market Cap. 99.30M              
    Shares Outstanding 42.98M EPS, $ -1.24 -0.67 -46.00% -0.23 -0.13 -43.50%

    Source: Reuters.com, SEC Filings.

    Investment Highlights

    Shares in Galena Biopharma Inc. (GALE) slipped nearly 17% to close at $2.31, giving up big gains earlier this week when the biotechnology company announced a new patent on its cancer therapy NeuVax. Nearly 33 million shares exchanged hands during the session, topping the 10-day average of over 5 million shares. Earlier in the session, the stock hit a new 52-week high of $3.54.

    GALE shares have gained 59.3% in the last five days; 115.9% in the last month; and 90.9% year-to-date.

    In a statement, the Company stated that had received a Notice of Allowance from the U.S. Patent and Trademark Office (USPTO) for a patent covering the use of NeuVax, a HER2/neu peptide vaccine, for inducing immunity to breast cancer recurrence in patients having low-to-intermediate IHC ratings of 1+ or 2+ and a FISH rating of less than about 2.0. These patients represent a significant unmet medical need, with as much as 50-75% of breast cancer patients who do not qualify for Roche’s breast cancer drug Herceptin, the report said.

    According to Mark J. Ahn Ph.D., president and CEO, this patent reinforces the Company’s pioneering role in advancing treatment to reduce recurrence rates for breast cancer survivors.  “This addition to our global portfolio allows us to further strengthen our value proposition and explore additional uses for NeuVax to advance care and build value for patients and shareholders.”

    GALE on Wednesday announced the addition of Dr. Hope Rugo to its scientific advisory board. “Dr. Rugo’s renowned expertise in breast cancer research and treatment will offer Galena Biopharma deep insight into crucial areas for our continued progress. It is imperative that we build a world-class SAB with key opinion leaders to ensure our progress in developing novel approaches to advancing breast cancer care, and we look forward to Dr. Rugo’s participation,” commented CEO Ahn.

    Source:

    http://www.galenabiopharma.com/news

    Financial Summary

    GALE reported a net loss of $5.5 million, or $0.13 per basic and diluted share, for the three months ended September 30, 2011, compared with a net loss of $4.1 million, or $0.23 per basic and diluted share, for the comparable period in 2010. Such increase in net loss was due to an increase in net loss from operations.

    The Company realized a net loss of $13.1 million, or $0.39 per basic and diluted share, for the nine months ended September 30, 2011, compared with a net loss of $10.2 million, or $0.57 per basic and diluted share, for the nine months ended September 30, 2010. GALE attributed the increase in net loss to a $2.1 million increase in net loss from operations and a decrease of $1.7 million of non-cash income as a result of the change in fair value of warrant liability, which was offset by an increase in non-cash income of $0.7 million related to a gain in the purchase price consideration liability and an increase in other income of $0.2 million from government grant monies received.

    GALE’s cash, cash equivalents and short-term investments totaled $15.7 million at September 30, 2011, compared with cash and cash equivalents of $6.9 million at December 31, 2010. This $8.8 million increase is attributable to the closing of two underwritten public offerings that provided net cash proceeds of approximately $18.2 million after underwriting fees and other estimated offering expenses (the March 2011 offering resulting in net proceeds of $7.3 million and the April 2011 offering resulting in net proceeds of $10.9 million), offset by net cash used in operating activities of $10.5 million for the nine months ended September 30, 2011.

    Source:

    http://investors.galenabiopharma.com/releasedetail.cfm?ReleaseID=623681

    Financial Strength (22-Mar-2012)

    Company

    Industry

    Sector

    Quick Ratio (MRQ) 3.37 1.42
    Current Ratio (MRQ) 0.75 4.17 1.75
    LT Debt to Equity (MRQ) 0.30 30.08 27.26
    Total Debt to Equity (MRQ) 1.68 33.11 36.25
    Interest Coverage (TTM) 51.21 2.32

    Source: Reuters.com, SEC Filings.

    Technical Analysis

    Source: http://stockcharts.com

    GALE is presently near its upper Bollinger Band. This suggests that it is at a high level relative to recent action.

    The MACD for GALE currently indicates a strong bullish signal for two reasons. First, the MACD is above the signal line, a 9-day moving average. Second, the MACD is above 0, which implies that the underlying moving averages are trending higher.

    Comparative Analysis

    Company Name Ticker Price per Mrkt. Cap. P/E P/S
    Mar22-2012 symbol Share, $ $ Mn 2011 2012 2011 2012
    Rosetta Genomics Ltd. (USA) ROSG 0.39 n/a n/a n/a n/a n/a
    Alnylam Pharmaceuticals Inc. ALNY 11.3 488.25M n/a n/a 8.19 16.46
    Biotechnology Median       17.45 n/a 9.23 n/a
    Galena Biopharma Inc. GALE 2.31% 99.30M n/a n/a n/a 49.65

    Source: Thomson Financial

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