Biotech small-cap Galena Biopharma has garnered significant analyst coverage in lieu of recent product developments and financial results. Galena currently has five programs in various stages of clinical development, including NeuVax, in phase III for breast cancer, and Folate Binding Protein vaccine (FBP) in phase I/II for gynecological cancers. In addition, Abstral® is the company’s FDA-approved treatment option for breakthrough cancer pain. Galena acquired Abstral in March 2013, and officially launched the drug in the U.S. in October.
Analyst Coverage
Needham & Company maintained a Buy rating on Galena stock with a price target set at $3.50, basing its valuation primarily on the company’s NeuVax candidate, also noting Abstral’s upside potential. Needham analyst Chad Messer, Ph.D., says:
“We maintain our Buy rating and $3.50 price target on Galena. Our target is based on a $324 million enterprise value for NeuVax. … Abstral could perform better than expectations. NeuVax could succeed in its pivotal clinical trial and exceed sales expectations in breast cancer patients. Galena could partner NeuVax. Galena could advance earlier stage programs including its phase II trial of NeuVax in combination with Herceptin.”
Zacks reiterated its valuation on GALE with a 12-month PT of $4.50 with an Outperform rating, labeling NeuVax “blockbuster potential” if the product is brought to market. In his note, Grant Zeng, CFA, says:
“It’s a surprise to us that GALE reported Abstral sales ahead of its official launch and we are pleased with the initial commercial success to date with Abstral which is very encouraging. With its sales force and commercial organization fully deployed, GALE continues to make significant strides with physicians, payors and patients and expect continuing strength with the launch. As a result, we expect to see continued Abstral sales growth in the fourth quarter of 2013 and fiscal 2014.”
Noble analyst Rahul Jasuja, Ph.D., in a note reaffirmed his Buy rating and $4 price target on the stock, saying:
“The development of NeuVax for breast cancer has a long history that has helped optimize the cancer vaccine for a specific clinical setting in breast cancer, giving it a greater chance of success. The clinical development, led by Dr. George Peoples and others, over more than a decade of trials and tribulations, has optimized numerous parameters of the NeuVax clinical development design. Past cancer vaccines may not have had such a long and rehearsed clinical development lifeline leading to optimization. Furthermore, most efforts with past cancer vaccines targeted aggressive tumors with large tumor burden and thus may have faltered.”
Additional Analyst Coverage for Galena
• Cantor Fitzgerald’s Maria Goldstein issued a Buy rating and a price target of $4.
• MLV & Co. maintained a Buy rating and a $6 price target on the stock, issuing two analyst notes to separately discuss the Galena’s Q3 results and FBP.
• Roth Capital issued two analyst notes to separately highlight the company’s Q3 results and FBP – the firm reiterated a Buy rating and a price target of $7 on the stock.
• JMP Securities maintained a Market Outperform rating and a $5 price target.
For more information, visit www.galenabiopharma.com
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