Galena Biopharma (GALE +13.7%) rallies on news the company is buying Mills Pharmaceuticals, giving GALE rights to GALE-401 (CR anagrelide), a treatment for Essential Thrombocythemia.
In GALE's estimation, the drug "meets the qualifications for orphan drug status [and] has an estimated peak market size of approximately $200M in the U.S."
The company says a Phase 2 study should begin in "mid-2014."
GALE made an upfront payment to Mills' owners who are also eligible for stock grants and a milestone payment, the latter is contingent upon FDA approval of an NDA for '401. (PR)