Is It Time to Buy Galena?

Galena Biopharma  (NASDAQ: GALE  ) shareholders have had a rough 2014 so far, with the stock dipping over 50% from its highs just north of $7 to a recent share price of just over $3. The stock has been plagued by rumors and allegations of share price manipulation and a variety of other issues. But let's leave the rumors aside and focus on the fundamentals and the pipeline, the actual business behind the share price.

So is it time to buy the stock?

In the video below, from Market Checkup, the Motley Fool's health care-focused investing show, health care analysts Michael Douglass and David Williamson answer.

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Read/Post Comments (7) | Recommend This Article (6)

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  • Report this Comment On June 10, 2014, at 7:02 PM, rrm wrote:

    Very poor video.

    1) According to the CEO, the burn rate will drop a lot as the year progresses because the most expensive part is locating the candidate for the studies. Those are one time expenses. They had to test 2600 applicants to find 700 candidates.

    2) According to the CEO, if Abstral sales are on track with the company estimates, Galena will be cash flow positive. That means they will not need any more financing from the outside markets. Unless they buy more companies, they should not see any dilution.

    3) According to the CEO, the stock promotion charges are bogus. Even if the courts find against them, he said that they have insurance to cover the liabilities.

    4) Neuvax is not the only drug they are working on. GALE-301 is in phase 2a for ovarian and endometrial cancer patients. GALE-401 is in Phase 2 for patients with high platelet counts due to myeloproliferative neoplasms, including Essential Thrombocythemia. This is an orphan drug. It's a controlled release version of an already existing drug for the same disease.

    There may be better investment options for investors than GALE but if you plan on posting your comments in a video, please do a little homework if you care about your reputation.

  • Report this Comment On June 11, 2014, at 8:28 AM, gatling wrote:

    the 2 biggest complaints I heard were that they don't like the company because of some chatter. Well the stock fell from $7 to $2 because of that chatter, not because of any failure in their drug trials nor in the sales of abstral; perhaps that is why GALE should be looked at as an investment because it is very affordable. Second their concerns about dilution. Dilution in companies like GALE is a very legitimate concern but their instant analysis of the companies financials is poorly presented. Abstral has been marketed for 2 qtrs. with considerable success, the analysts make only a passing reference to a first yr estimate without looking at future potential. They also made no attempt to look at the costs of the drug trials for the upcoming year(s). Basing your burn rate on what it costs last year is not the most reliable indicator in either direction.

    Investing in biopharm is extremely risky but it comes with potential very high rewards. A lot of diligence is required something I didn't witness in the video

  • Report this Comment On June 11, 2014, at 8:34 PM, Jdpali wrote:

    Another me too without anything new. If you have been following Galena, this video shed no further insight. Why bother making one if you just simply regurgitate old info.

  • Report this Comment On June 11, 2014, at 10:00 PM, Protocola wrote:

    Time to buy GALE???

    Without any closure from the SEC investigations.... .....I don't think so ~too risky for me at this time!!!!

  • Report this Comment On June 11, 2014, at 10:31 PM, smurfffool wrote:

    Seriously, talk about stock promotion. Pick out a stock that has jumped over the past few days and is on everyone's radar, put together a quick vid downplaying it for whatever reason, then try to promote another stock that you have already bought into, and PROFIT. Maybe Galena can hire this guy instead to promote stocks.

  • Report this Comment On June 11, 2014, at 11:27 PM, danindenver wrote:

    Foolishly Naïve!!!

    Through their obvious lack of Factual Data, David & Michael grossly misrepresent the most salient of Galena's potentials. Here are but three of their inexcusable oversights (or lack of insights):

    FIRST - NeuVax Phase III Interim Data. Do D&M even know of, or are they aware of the expected (2014/2015) timetable and significance of this upcoming landmark FDA determination? Hardly possible, for if they did they'd not be making reference to 2017 as the year for which we must await further FDA's NeuVax assessment. The FACT is that when the FDA's specially appointed Independent Oversight Committee registers the Phase III patient RECURRENCE, said committee will UNBLIND the study, assess the data, and make its recommendations to the FDA. The FDA will, in turn, issue one of three likely statements regarding P-3 NeuVax trials: "continue," "stop," or "modify protocols." This will happen either later this year (2014) or in early 2015. "Stop" terminates the study, forget NeuVax. "Modify" is unlikely for a number of reasons. "CONTINUE" implies (yes, clearly and without doubt) the Study data are Statistically Significant, therefore, an Effective & a Safe NeuVax vaccine. (And keep in mind these sort of positive findings would be consistent with the 78% reduction in rates of recurrence identified within one very important P-2 patient population.)

    SECOND: All of NeuVax P-3 "screening" of prospective patients has now been completed! Therefore, and thereby, the great majority of patient expenses associated with P-3 trials have been incurred AND the Company's expenditures attributable P-3 are about to significantly Decrease.

    Based upon Abstral increasing sales, it's reasonable to project at or near slight positive Company bottom line by or before the end of Q-1, 2015.

    THIRD: the "boys" (D&M) either know nothing about, or are ignorant of FBP, the combination of NeuVax + Herceptin, and the prospective value of the recent Mills asset acquisition.

    While D&M may be capable of smiling in front of the camera, and of pretending to be adults, they've certainly failed in their primary mission of providing fact-based information derived from in-depth study combined with acquired knowledge. NO credibility can be extended these boys!

  • Report this Comment On June 12, 2014, at 2:52 PM, marp11 wrote:




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Michael Douglass

As the Motley Fool's Health Care Editor/Analyst, I focus on all things health care -- although my greatest interest is in the megatrends reshaping the American health care system, including the Affordable Care Act, Accountable Care Organizations, a shifting regulatory landscape, and the new drug discoveries fundamentally changing disease management and treatment.

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