Seeking Alpha Contributor Ponders Factors to Sustain Galena Biopharma’s (GALE) Triple-Digit Gains
The end of a year inherently triggers a mental account of the good and bad accumulated in the last 365 days. For investors taking inventory of their investment portfolio, that closure is either one slammed shut with a grimace or one gently closed with a sense of pride. As Seeking Alpha contributor Brian Nichols discusses in a recent article, investors that held onto shares of Galena Biopharma no doubt filed this stock among 2013’s favored.
Galena has been a top performer for the last two years, writes Nichols, taking a look at the stock’s track record and raising the question as to whether or not the stock has reached its fair value and if more upside is to come.
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“2012 was a transformational year for Galena Biopharma: It was this year that Galena went from unknown to one of the year’s best performers.”
Galena soared 300 percent from the 12 months between Christmas of 2011 and 2012, fueled by the company’s announcement on January 5, 2012, that it received investigational new drug approval for the phase 2 trial of its breast cancer drug, NeuVax, in combination with Roche’s Herceptin.
Nichols recaps several other considerable events that took place over the course of the year that contributed to a hearty close for 2012.
In 2013, the company grew even stronger.
“After 2012, not many dreamt that 2013 or the following Christmas-to-Christmas period could be as good – or better. However, Galena has soared more than 150% in that period, driven by a number of new catalysts that no one saw coming.”
Galena has rallied more than 100 percent in the last three months, greatly influenced by the company’s acquisition of Abstral® for the treatment of breakthrough cancer pain.
In March 2013, Galena acquired Abstral, which generated sales of $54 million in 2012, representing growth of 40 percent. When Galena officially launched Abstral in the fourth quarter, the drug had already earned $1.2 million for the previous quarter, putting the company on pace to achieve its goal of $2 million in annual sales.
Nichols again recaps contributing factors that contributed to these gains.
Looking ahead to 2014, Nichols points to suggestive events, such as Galena’s ongoing phase 3 trial, that have the potential to generate more gains.
In conclusion, Nichols writes, “As with the Teva partnership and the data itself in 2012 or the Abstral acquisition in 2013, there will likely be a catalyst that we don’t see coming. Yet based on those catalysts we can predict and expect 2014 might be setting up to be Galena’s best and most transformational year to-date.”
For more information, visit www.galenabiopharma.com
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