MissionIR's  Instablog

MissionIR
Send Message
We know our reputation is based on the integrity of our clients and go to great lengths to ensure the companies represented adhere to sound business practices. It is our unwavering commitment to connect the investment community with companies that have great potential and a strong dedication to... More
My company:
MissionIR
My blog:
MissionIR Blog
  • Galena Biopharma (GALE) Bull Run Only The Beginning, Says Wall Street Cheat Sheet Writer 0 comments
    Dec 5, 2013 2:35 PM | about stocks: GALE

    Since October 31, shares of biopharma company Galena Biopharma have surged nearly 100 percent. Wall Street Cheat Sheet contributor Tom Meyer recently wrote an article defining four factors that he believes will spur shares of Galena Biopharma to continue their ascent.

    To read the full article visit wallstcheatsheet.com/stocks/4-reasons-wh....html

    1.Analyst Coverage

    Research firm Oppenheimer on November 26 initiated coverage of Galena, issuing an Outperform rating on the stock with a price target of $6. Oppenheimer placed heavy consideration on the commercial potential of Galena's NeuVax.

    Aside from prior ratings, Meyers also notes that since June 2012 five other firms have issued a positive rating on the company.

    2.Institutional Holdings

    "One of the best ways for retail investors to determine the potential of a company is to determine if institutions are holding shares of the company. In Galena's case, they certainly are," writes Meyers.

    Institutions own about 17 percent of Galena's outstanding shares, according to most recent SEC filings, representing a total value of nearly $70 million and signaling high confidence that the company is well-positioned for success.

    3.Abstral® Potential

    Abstral is the company's fentanyl sublingual tablet for the management of breakthrough cancer pain in patients that have developed opioid tolerance. Galena acquired the drug in March 2013 and officially launched the product this fall.

    "Breakthrough pain is known to interfere with daily living, which is why Abstral has the potential for massive success. … Although the official launch didn't occur until October, the company did have some minimal sales of Abstral during the third quarter that totaled $1.2 million. Galena has now fully commenced its promotional efforts for Abstral so investors can expect sales to increase exponentially going forward," Meyers states in his article.

    4.Valuation

    Taking into consideration the other products in Galena's pipeline, Meyers estimates that Galena can capture 25 percent of the TIRF (transmucosal immediate-release fentanyl market), expected to hit $700 million by 2018, for annual sales of approximately $175 million.

    "Oppenheimer determined that Galena Biopharma was worth $6 per share based simply on the potential of NeuVax," writes Meyers. "However, given the above market analysis of Abstral, I think it is likely that Galena could get a large bump in valuation over the coming years."

    In conclusion Meyers writes, "Galena Biopharma certainly has a lot going for it. It is technically strong and has maintained its price level despite soaring nearly 100 percent since the beginning of the month. With lots of catalysts coming over the next 12 months and increased awareness by both research firms and institutions, investors should strongly consider getting in now before it's too late."

    For more information, visit galenabiopharma.com

    MissionIR provides investor relations services to publicly traded companies in exchange for compensation. This article may be part of our efforts to widen a client's exposure. To read our full disclaimer, visit http://disclaimer.missionir.com

    Stocks: GALE
Back To MissionIR's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Full index of posts »
Latest Followers

StockTalks

More »
Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.