The stock has not a ceiling. This tree can grow to the sky and then will have a golden apples.
"In addition to having a massive potential market, its production of NeuVax is quite low. NeuVax is produced for less than $1,000 per dose, which reflects the potential for very large margins considering Dendreon's (DNDN) Provenge which has an off-the-shelf product being produced for roughly $20,000. Therefore, with a solid product, a large market, and a low production cost I think it is obvious why I deemed the stock as the best value based on valuation and potential."
During its 36 month study, the recurrence of breast cancer was tested among patients. The vaccinated group (with NeuVax) had a 0% recurrence rate compared to a 22% recurrence rate in the control group. This proves the drug to be very effective and useful in the treatment of breast cancer. And although the effectiveness of the drug is what earns the FDA approval it is only one piece of a large pie that has investors so excited of this company's potential.
The stock is no longer an under-the-radar investment with the biotechnology community, and its news on Monday is yet another reason for investors to be excited. The company announced that it had received a patent that covers the use of NeuVax for treating a target population of low to intermediate HER2 patients. This basically means that Galena just received rights to NeuVax, a drug that treats at least double the number of patients as Herceptin, the $5 billion in annual sales drug. It's no wonder the stock jumped 25% on the news. This is a stock that is still valued under $100 million and a patent such as this could be huge for the future of this company (both in sales and attractiveness to big pharma).
Matthew: The Roche/Genentech interest and support I referred to pertains to the partial funding by Roche/Genentech of Galena’s Phase II trial (not phase III as I incorrectly said), which i will explain further in the story. I believe funding part of a clinical study means Roche is interested enough in the product to put some money into its study. When i said that Roche has expressed “an interest in supporting Neu Vax,” I believe partial funding a clinical trial is a kind of “expressing” support for the product, but you apparently disagree. I am always looking for these kinds of stories where a small company is trying to succeed in developing a product, or seeking a heloing hand from the big guys., I have written such companies that ballooned into giant comapnies, incoiuding Genetech when it was a piuppy and even Amgen iun ny 48 years of writing for Business Week. I am just giuving a chance to the small frys, and even if their product or operations fail, they at least tried. I wrote about Apple when it was trading at $8 a share. Nobody thought then that it would blast off like it has since then.