Galena Biopharma (GALE) Tops Q2 EPS by 11c

Galena Biopharma (NASDAQ: GALE) reported Q2 EPS of $0.05, $0.11 better than the analyst estimate of ($0.06).

Galena had cash and cash equivalents of approximately $19.6 million as of June 30, 2016, compared with $29.7 million as of December 31, 2015. The decrease of approximately $10.1 million in cash and cash equivalents from December 31, 2015 to June 30, 2016 was attributable primarily to $24.7 million used in operating activities, $1.1 million in selling expenses related to the sale of the Company’s commercial products, and $4.8 million in payments on long-term debt. The decrease was partially offset by $20.2 million in net proceeds from issuance of common stock and warrants to purchase common stock in January 2016.

Subsequent to quarter end, on July 13, 2016, Galena closed the sale to certain institutional investors of common stock in a registered direct offering, and warrants to purchase common stock in a concurrent private placement. The net proceeds to Galena, after deducting placement agent fees and estimated offering expenses, were approximately $11.7 million.

Additionally, on May 10, 2016, Galena entered into a Securities Purchase Agreement with JGB Newton Ltd. to sell $25.5 million principal amount of Debentures. The Debentures include a 6.375% original issue discount, and, after broker and other expenses, net proceeds were approximately $23.4 million. The net proceeds are currently restricted cash, and Galena is in discussions with the holder of the Debentures to modify the agreement.

For earnings history and earnings-related data on Galena Biopharma (GALE) click here.

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