Galena Biopharma (GALE) PT Cut to $1 at Maxim Group, Focus on GALE-401

August 10, 2016 7:20 AM EDT
Get Alerts GALE Hot Sheet
Price: $1.79 -1.1%

Rating Summary:
    6 Buy, 2 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 13 | Down: 22 | New: 54
Trade GALE Now!
Join SI Premium – FREE

Get instant alerts when news breaks on your stocks. Claim your 2-week free trial to StreetInsider Premium here.

Maxim Group analyst Jason McCarthy cut his price target on Galena Biopharma (NASDAQ: GALE) to $1.00 (from $2.00) but maintained a Buy rating as the company works its way out of the penalty box.

McCarthy highlighted:

Galena reported 2Q16 with net income of $5.4M, resulting from a combination of decreased warrant liabilities (due to a decline in stock price), as well as purchase price liability for NeuVax (due to PRESENT termination), offset by $9.3M in operating expenses. The company began 3Q with $19.6M in cash. Combined with $11.7M from an equity financing in July, it now has ~$29M in cash on the balance sheet.
GALE-401 going pivotal. With PRESENT over (for now), focus has shifted towards driving GALE-401 (a controlled release form of anagrelide) to a pivotal study for the treatment of "essential thrombocythemia." Galena is targeting a 505B2 pathway and would likely only need to demonstrate non-inferiority to standard anagrelide in a relatively small (~N=100 to 120) study. A meeting is planned with the FDA; if approved, the study could initiate in 1H17 (data ~2019).
NeuVax window still remains open. Both combination studies (P2 and P2b) of NeuVax + Herceptin will continue following review of the PRESENT data by investigators. In addition, it's important to note that the immunotherapy space as a whole is moving towards "combination" approaches, even CAR-T. Herceptin has been shown to make breast cancer more immunogenic. In a small study with NeuVax, patients treated with the combination did better (anecdotal, but suggestive, in our view).
Conclusion. PRESENT is now the past. While investigator-sponsored studies will continue and Galena will evaluate a path forward post-PRESENT, focus has turned to a pipeline of assets with unlocked value, including a potential phase III-ready asset in GALE-401.

Valuation. We adjust our metrics for the shift in pipeline focus. The result of these changes is our 12-month price target dropping to $1 from $2 per share. This still supports our Buy rating given the current stock price.

For an analyst ratings summary and ratings history on Galena Biopharma click here. For more ratings news on Galena Biopharma click here.

Shares of Galena Biopharma closed at $0.46 yesterday.

Serious News for Serious Traders! Try Premium Free!

You May Also Be Interested In

Related Categories

Analyst Comments, Analyst PT Change, FDA

Related Entities

Maxim Group

Add Your Comment