StreetInsider Rating Du Jour 11/28: Aegis Capital Sees an Easy Triple in Galena Biopharma (GALE)
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Price: $2.43 -2.8%
Rating Summary:
5 Buy, 0 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 35 | New: 23
Rating Summary:
5 Buy, 0 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 35 | New: 23
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StreetInsider.com's Rating Du Jour for November 28, 2012 is Aegis Capital's new call on emerging biotech Galena Biopharma (Nasdaq: GALE).
Aegis' Raghuram Selvaraju launched coverage Wednesday on Galena with a "Buy" rating and 18-month price target of $6.00, which suggests 280 percent upside from Tuesday's closing price.
Selvaraju is positive on the company's breast cancer treatment, NeuVax, a novel immunotherapeutic approach to combating the recurrence of breast cancer in patients with minimal residual disease.
The analyst notes that NeuVax is a peptide vaccine that is derived from the extracellular domain of the HER2/neu cell surface receptor protein. HER2/neu protein is one of the world's most recognizable oncogene products, used widely in blockbuster
monoclonal antibody product Herceptin (trastuzumab), marketed by Roche/Genentech.
"In our view, Galena represents an attractive investment opportunity because it is focusing on a validated target, possesses a solid data foundation showing that its vaccine is active in human subjects, and is conducting a Phase 3 trial of the vaccine that is slated to report interim data in late 2013 /early 2014," Selvaraju said.
Not only does Galena have a promising drug, it has "Street Cred," the analyst said. Roche/Genentech is funding a Phase 2 trial that is aimed at assessing the impact of combining NeuVax and Herceptin. "From our perspective, this is a very encouraging sign and shows that some of the most knowledgeable experts in oncology-focused drug development see promise in Galena's lead program."
Valuation is attractive at its currently $100 million market cap as other firms at earlier stages of development in the oncology field trade at multiples of this valuation, the analyst also argues.
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Aegis' Raghuram Selvaraju launched coverage Wednesday on Galena with a "Buy" rating and 18-month price target of $6.00, which suggests 280 percent upside from Tuesday's closing price.
Selvaraju is positive on the company's breast cancer treatment, NeuVax, a novel immunotherapeutic approach to combating the recurrence of breast cancer in patients with minimal residual disease.
The analyst notes that NeuVax is a peptide vaccine that is derived from the extracellular domain of the HER2/neu cell surface receptor protein. HER2/neu protein is one of the world's most recognizable oncogene products, used widely in blockbuster
monoclonal antibody product Herceptin (trastuzumab), marketed by Roche/Genentech.
"In our view, Galena represents an attractive investment opportunity because it is focusing on a validated target, possesses a solid data foundation showing that its vaccine is active in human subjects, and is conducting a Phase 3 trial of the vaccine that is slated to report interim data in late 2013 /early 2014," Selvaraju said.
Not only does Galena have a promising drug, it has "Street Cred," the analyst said. Roche/Genentech is funding a Phase 2 trial that is aimed at assessing the impact of combining NeuVax and Herceptin. "From our perspective, this is a very encouraging sign and shows that some of the most knowledgeable experts in oncology-focused drug development see promise in Galena's lead program."
Valuation is attractive at its currently $100 million market cap as other firms at earlier stages of development in the oncology field trade at multiples of this valuation, the analyst also argues.
Get StreetInsider.com's Rating Du Jour delivered to your e-mail each trading day for Free. Go to: http://www.streetinsider.com/signup_email.php?single=rating
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