Galena Biopharma is currently trading with a market cap of $128 million, which represents a $32 million loss since the company announced data. Aside from the short-term volatility and its $1.90 price, most analysts are predicting a price anywhere between $3.00 and $6.00; but how does it get there?
If Galena was to reach the top target of $6.00, it would be valued over $400 million. Not bad for a company that began the year as a $35 million company. However, this is not an odd occurrence in this sector. There are countless companies, such as Inhibitex, Sarepta Therapeutics (SRPT), and Pharmacyclics (PCYC), that all saw similar valuations and rose with even larger gains in a shorter period of time. Therefore, Galena's 2012 movement and its expected 2013 gains are not unheard of and are obviously sought among the investment community.