Today's Research Reports on Stocks to Watch: Depomed Inc. and Galena Biopharma
NEW YORK, NY / ACCESSWIRE / August 9, 2017 / Despite Depomed Inc. releasing second quarter EPS that was in line with estimates, the Street still wasn't impressed with the company's loss for the quarter and sent shares deep into the red. Shares of Galena Biopharma also tanked after announcing a merger agreement to create a company that will develop novel immune therapies to treat various cancers.
RDI Initiates Coverage on:
Depomed, Inc.
https://ub.rdinvesting.com/news/?ticker=DEPO
Galena Biopharma, Inc.
https://ub.rdinvesting.com/news/?ticker=GALE
Depomed, Inc.'s shares closed down roughly 33% on Tuesday and sank to a new low of $6.14 during intra-day trading. Trading volume was staggering at nearly 17 million shares traded compared to just an average volume of around 1.5 million. The company reported second quarter financial results for the quarter ended June 30, 2017 on Monday that included a loss of $26.7 million. Despite EPS being in line with estimates, it didn't seem traders were that pleased given how much the stock dropped. The California-based company reported a loss of 8 cents per share, after being adjusted for non-recurring costs and stock option expense. This was a match for what Wall Street had expected. Revenue was $100.5 million for the quarter. Looking ahead, the company forecast full-year revenue of $395 million to $410 million.
CEO Arthur Higgins commented, "Our second quarter product revenue was broadly in line with our expectations. We continue to operate in an environment that is challenging and rapidly evolving. The increasing public focus on opioids as well as opioid manufacturers, including by government agencies and other industry stakeholders, will continue to disrupt the opioid markets."
Access RDI's Depomed, Inc. Research Report at:
https://ub.rdinvesting.com/news/?ticker=DEPO
Galena Biopharma, Inc. was a big loser in trading on Tuesday, with shares plummeting into the red and closing down 26.55%. Traders sold off on a big announcement Galena made, in which the company will merge to create a late-stage NASDAQ listed company that will develop novel immune therapies for various types of cancer. According to the company's press release, Galena and SELLAS Life Sciences Group Ltd, a clinical stage biopharma company, will enter into an all stock definitive merger agreement under which SELLAS will merge into and become an indirect wholly owned subsidiary of Galena. The company will be renamed SELLAS Life Science Group Inc. SELLAS has a lead asset called galinpepimut-S (GPS), which is a Wilm's Tumor 1 (WT1)-targeting peptide-based immunotherapeutic. Roughly 4.6 million shares were traded yesterday compared to just an average of around 500,000 shares.
SELLAS CEO Dr. Angelos Stergiou commented, "This transaction with Galena is an important step for SELLAS and the advancement of our lead product candidate, GPS, through important development milestones. We believe GPS has the potential to benefit a wide range of cancer patients and become an important piece of the cancer immunotherapy treatment landscape as both a monotherapy and in combination with other agents, particularly checkpoint inhibitors."
Access RDI's Galena Biopharma, Inc. Research Report at:
https://ub.rdinvesting.com/news/?ticker=GALE
Our Actionable Research on Depomed, Inc. (NASDAQ: DEPO) and Galena Biopharma, Inc. (NASDAQ: GALE) can be downloaded free of charge at Research Driven Investing.
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SOURCE: RDInvesting.com
