Galena is a biopharmaceutical company, involved in the development of oncology treatments. The company’s leading candidate is NeuVax which is currently in Phase III trials for treating the recurrence of breast cancer. In the last 52 weeks the company stock has fluctuated between $1.04 and $2.6. Right now there is a very high demand for small biotechnology companies with promising drug candidates. This is because a number of major patents are expiring, such as Lipitor and Seroquel IR which means that manufacturers of these companies are being forced to invest in new drugs to fill this major void.
Galena has a very strong recommendation from sell side analysts which have unanimous buy rating on the stock. The mean sell side target price on the stock is $4.8 which is 50% above the current stock price. The stock can more than double at this price if any news of a potential acquisition breaks out. There are number of potential buyers of Galena which includes some leading players like AstraZeneca and Pfizer.
AstraZeneca has recently decided to focus on three key areas which also include Oncology. Galena would be a perfect fit for a company suffering from a weak pipeline and falling revenues such as AstraZeneca (NYSE: AZN). The company currently has more than $8.5 billion in cash and can easily afford Galena worth approximately $200 million. AstraZeneca has already announced that it plans to make focused acquisitions and Galena will make a lot of sense for the struggling giant.
Most investors do not have patience. They dream of huge returns to their investment within a very short time.
Acquisition fits this dream!
Trust your DD, have patience and one will be handsomely rewarded.
Very Strong Buy of Gale Shares and hold!!!
Same old #$%$. This is the standard diatribe straight out of the pumper's handbook: "Big pharma needs new drugs to rejuvenate their aging drugs that have patents expiring soon!"--- we weren't born yesterday. This gets dusted off all of the time and is so old, it's ;like trying to put lipstick on Cher.
Sentiment: Strong Buy
All signs are pointing towards Galena wanting to grow and development on its own without being acquired by others.
Teva has a foot inside the door. It would be most likely for it to acquire Gale.
Thank you for posting this
Gale can be the target of any big Pharma in oncology. It is small (can be bought for $400 to $500mm today), few employees and a pomising NeuVax and now Abstral with some cash flow. A big company doesn't have to build a mktg team either to mkt Abstral. The key thing is who will step in first, buy Gail cheap today but take the risk of a failure? Many big Pharma would rather pay the full price once the risks are out of the way so the top guys can keep their jobs!
AZN is particularly interesting. It is a company in the UK an lags behind Glaxo. It has a dry pipeline and the CEO recently got fired mainly due to that. One of its main products (Crestor with $8bn sales I think) the US patent is expiring in two years (Canada expired already). The new CEO ( A French guy who came from Sanofi I think) said he wants to do smaller acquisitions to build the pipeline Gale fits the bill. However there are many companies people associate with AZN as potential candidates.
It will be nice if some takeover speculation creeps in here.
Some key players that could join in on a bidding war:
Roche/Genentech - patent expiry on Herceptin in 2014
Teva - already have partnership in Israel
AstraZeneca - no pipeline & new CEO
Pfizer - loaded with cash & looking to add to depleted pipeline
IMO - would like to see Galena stay in tact and someone partner 50/50 with them on NeuVax.
Staying long - looking for an entry point
Sentiment: Strong Buy
Another way to look at this is your comparison on previous posts to Dendreon, 3 years prior to Provenge approval for advanced prostate cancer in 2008, Dendreon had an OS of roughly 55 million shares. Im using this comparison because NeuVax has a clinical 3 due in 2017, that could easily be moved up. Dendreon stock price at the time was 6 to 15 dollars per share in 2004-2005, with a market potential for advanced prostate cancer of 1-1.5 bil. Breast cancer is a much bigger market, 3-4.5 billion. GALE at this stage could easily be worth several dollars to 10 dollars per share at this juncture