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  • Needham Gives ‘Buy' Rating To Galena Biopharma, Inc. (GALE), Predicts $3.50 Stock Price 0 comments
    Aug 8, 2013 1:43 PM | about stocks: GALE

    Nationally recognized investment banking and asset management firm Needham & Company LLC recently initiated coverage of Galena Biopharma, Inc. with a "Buy" rating and a price target of $3.50.

    Basing the price target on a $231.3 million enterprise value for Galena's NeuVax vaccine, Needham arrived at its valuation by placing a 5x multiple on its 2020E sales estimate of $487.5 million, discounted back to YE13 at 40%. NeuVax, Galena's lead development candidate, is a vaccine designed to train the immune system to recognize and destroy breast cancer cells.

    Needham values Galena's Abstral drug at $67 million based on 5x estimated peak sales in the United States of $50 million, discounted back five years at 30%. Abstral is the only available sublingual tablet formulation of fentanyl for the breakthrough cancer pain market.

    Needham further adds in $8 million for Galena's share of RXi Pharma, arriving at a projected enterprise value of $306.6 million. To this, Needham adds $16.7 million in YE13E cash and subtracts $15 million in debt for the acquisition of Abstral.

    Assuming 83.25 million shares outstanding, Needham also factors in the exercise of ~11 million in-the-money (at $3.50) warrants at a weighted average strike price of $1.55, arriving at a 12-month price objective of $3.45 per share.

    A biopharmaceutical company based in Portland, Ore., Galena Biopharma is engaged in the development of innovative, targeted oncology treatments to address major unmet medical needs in the advancement of cancer care. For more information about Galena Biopharma, visit galenabiopharma.com.

    Please see disclaimer on the MissionIR website


    Stocks: GALE
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