Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of Galena Biopharma (NASDAQ: GALE ) advanced as much as 20% after the company focused on developing cancer therapies announced the acquisition of Mills Pharmaceuticals and received a price target upgrade from Roth Capital.
So what: According a Galena press release that did not mention any financial terms, the acquisition of Mills Pharmaceuticals gives Galena worldwide rights to GALE-401, a patented, controlled release formulation of anagrelide. Galena expects to pursue an expedited regulatory pathway for FDA approval of GALE-401 as a treatment for essential thrombocythemia, a rare bone marrow disease. Galena estimates the experimental therapy has peak market potential of $200 million. On the heels of this news, Roth Capital boosted its price target on Galena to $11 from $7.
Now what: If Galena can get GALE-401 on an expedited review path this will likely be a smart purchase, although we can never tell for certain without financial terms of the deal being disclosed. Ultimately, Galena shares are roaring higher at just the right time -- cancer immunotherapy treatments are a hot issue among investors at the moment, and the mecca of all health-care events, the JPMorgan Healthcare Conference, is going on this week. I would, however, still recommend exercising caution here with Galena, as many of its major catalysts, specifically as they relate to NeuVax, are still years away.
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