Entering text into the input field will update the search result below

Galena Biopharma, Inc. (GALE) Backed With High Expectations For Upcoming Abstral Launch

Sep. 10, 2013 2:25 PM ETSLS2 Comments
MissionIR profile picture
MissionIR's Blog
131 Followers
Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

Each year, nearly 1.6 million new cases of cancer are diagnosed in the United States, excluding skin cancer, making it the second leading cause of death. It is estimated that at least 40 percent of cancer patients experience episodes of breakthrough pain multiple times per day, each lasting roughly 30 minutes. Breakthrough pain is generally defined as chronic pain for which a patient must take a long-term analgesic for relief.

It is for this indication that small-cap biopharmaceutical company Galena Biopharma plans to launch Abstral, an FDA-approved therapy for breakthrough cancer pain in opioid-tolerant cancer patients. Abstral is the first and only fentanyl sublingual tablet for pain management in this context. The formulation rapidly dissolves under the patient's tongue in a matter of seconds, providing pain relief within minutes and lasting through the duration of the entire pain episode.

JMP Securities has assigned GALE stock with a Market Outperform rating and a price target of $5, with analysts stating, "We believe that a clear scientific rationale, well-established therapeutic target, and encouraging phase 2 results are supportive of a favorable probability of success in the ongoing phase 3 trial. Additionally, we see upside from the expected 4Q13 launch of Abstral, an approved rapid-onset, sublingual fentanyl tablet in the established cancer breakthrough pain market."

Roth Capital Partners issued similar sentiment on GALE, initiating a Buy rating on the stock with price target of $7, highlighting GALE's opportunity for collaboration for Abstral and GALE's lead candidate, NeuVax.

"We see two potential synergies for Abstral with Galena's drug development efforts: 1) it should allow for earlier detailing of physicians (especially those who treat breast cancer) in order to build relationships for NeuVax' anticipated success and 2) projected revenues could help to manage the company's burn rate effectively," the firm previously stated.

The $400 million U.S. fentanyl market is currently dominated by Cephalon (CEPH) and Teva (TEVA), which controls the largest piece of the fentanyl market in the U.S. with $161 million in annual sales.

GALE is preparing to take its own shot in the fentanyl market with the commercial release of Abstral in the U.S. slated for the fourth quarter of 2013. The company anticipates revenues between $1.5 million-$3 million in 2013, $8 million-$12 million in 2014, and peaking at $40 million-$60 million in revenues in three to five years, assuming a 10-15 percent market share.

For more information, visit GalenaBioPharma.com

Please see disclaimer on the MissionIR website

www.missionir.com/disclaimer.html

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.