FBR Sees Galena/NCI Collaboration on NeuVax as Positive; Maintains 'Outperform' Rating (GALE)

FBR maintains its Outperform rating and $5 price target on Galena Biopharma (Nasdaq: GALE) after the company announced a collaboration with the National Cancer Institute (NCI) to initiate a new, Phase 2 clinical trial with NeuVax (nelipepimut-S) in patients diagnosed with Ductal Carcinoma in Situ (DCIS).

Analyst Vernon T. Bernardino commented, We view addition of the new trial as positive. Current treatment options for DCIS, the most common type of breast cancer (estimate >50,000 diagnoses per year), are invasive and commonly involve surgery. Evaluating NeuVax in DCIS makes sense, as NeuVax generates a significant and potent cytotoxic Tcell mediated immune response (i.e., a rise in CD8+ cells) that is directed toward HER2/neu (human epidermal growth factor receptor 2). The overexpression of HER2, the target of NeuVax, is associated with aggressive types of breast cancer and is a target validated by the success of the immunotherapy, Herceptin, which had >$7 billion in 2014 sales. In combination with the immunoadjuvant, granulocytemacrophage colony-stimulating factor (GM-CSF), NeuVax has potential to be an intervention early in the diagnosis of breast cancer that could prevent symptomatic disease. We do not model NeuVax sales in DCIS and view positive results with NeuVax as upside to our models.

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

You May Also Be Interested In

• META to capture largest share of users, SNAP to benefit from ad budget shifts - Canaccord Genuity weighs in on TikTok ban
• Merck (MRK) PT Raised to $143 at Truist Securities
• Comcast Corp (CMCSA) PT Lowered to $48 at Pivotal Research