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PORTLAND, Ore., Feb. 14, 2014 (GLOBE NEWSWIRE) -- Galena Biopharma (GALE), a biopharmaceutical company developing and commercializing innovative, targeted oncology treatments that address major unmet medical needs to advance cancer care, today issued a letter to its shareholders in response to recent media attention stemming from an article by TheStreet.com.

Dear Shareholders:

Due to the recent media attention on Galena Biopharma that we acknowledge is having an impact on investor confidence, we felt it necessary, as a service to our shareholders, to publicly respond to the discussions and set the record straight.

The genesis of this attention is due to a single reporter, Adam Feuerstein from TheStreet.com, who clearly has an agenda when it comes to Galena. This can be evidenced by his numerous, tabloid-like articles on the company that have appeared over the past three years and are sensational but largely devoid of true information. The article this week is just another in the line, which for us have become noise.  

Mr. Feuerstein has never requested a meeting with the company to understand the details of our programs or the goals of the company. On the contrary, his requests for information are consistently accusatory and negative. As a result, we do not feel it is worthwhile to engage him or respond to other media outlets that serve to advance his agenda. However, we do recognize that you, our shareholders, deserve a direct response on the matters at hand.

The only facts in Mr. Feuerstein's most recent article that are remotely accurate are that Galena previously engaged the DreamTeamGroup and that insiders at the company, including me, divested shares in mid January. All other accusations in this article as with his prior reporting on Galena are specious and conveniently arranged to create controversy.

Over the past year, we have accomplished the following:

  • Acquired Abstral® (fentanyl) sublingual tablets, implemented a commercial team, launched the drug in October 2013, and currently have approximately 5% of the branded market after only four months of launch. Abstral is part of a class-wide Transmucosal Immediate Release Fentanyl (TIRF) Risk Evaluation and Mitigation Strategy (REMS) program designed to mitigate the risk of misuse, abuse, addiction, overdose and serious complications due to medication errors with the use of TIRF medicines.
  • Initiated our RELIEF Patient Registry trial for Abstral.
  • Continued to progress our pivotal, Phase 3 PRESENT trial for NeuVax" (nelipepimut-S) and added another commercial partnership with Dr. Reddy's in India.
  • Progressed enrollment with our Phase 2b combination trial with NeuVax and Herceptin® (trastuzumab).
  • Expanded our Intellectual Property with an issued patent for NeuVax in Europe.
  • Advanced our pipeline with the initiation of a Phase 2 trial with GALE-301, and we expect to report the Phase 1 data mid-year.
  • Broadened our portfolio into hematology with the acquisition of Mills Pharmaceuticals and anagrelide controlled release, now GALE-401. 

These facts about Galena and our progress are indisputable and clearly demonstrate our dedication to the mission of transforming Galena into a leader in providing therapeutics across the entire cancer-care spectrum. My expectation is that 2014 will unlock additional opportunities that will undoubtedly serve to benefit all who are connected to the success of Galena most importantly those individuals who are unfortunately confronted with the specter of cancer.

Looking ahead, I would hope that all investors, stakeholders and the media judge Galena on our ability to meet our publicly stated goals. Let success or failure be dictated by facts and data, not the questionable logic of a headline-seeking reporter. 

We look forward to further updating you on our progress during our earnings conference call next month. Thank you for your continued interest in Galena.

Mark J. Ahn, Ph.D.

President & CEO

About Galena Biopharma

Galena Biopharma, Inc. is a Portland, Oregon-based biopharmaceutical company developing and commercializing innovative, targeted oncology treatments that address major unmet medical needs to advance cancer care. For more information visit www.galenabiopharma.com .

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.  Such statements include, but are not limited to, statements about the progress of our commercialization of Abstral and clinical trials of our product candidates, including NeuVax and GALE 401, as well as statements about our expectations, plans and prospects. These forward-looking statements are subject to a number of risks, uncertainties and assumptions, including those identified under "Risk Factors" in Galena's Annual Report on Form 10-K for the year ended December 31, 2012 and Quarterly Report on Form 10-Q for the quarter ended September 30, 2013 filed with the SEC.  Actual results may differ materially from those contemplated by these forward-looking statements. We do not undertake to update any of these forward-looking statements to reflect a change in our views or events or circumstances that occur after the date of this press release. 

CONTACT: Remy Bernarda
         VP, Marketing & Communications
         (503) 405-8258
         rbernarda@galenabiopharma.com
  

http://media.globenewswire.com/cache/16400/small/11504.jpg

Source: Galena Biopharma 2014 GlobeNewswire, Inc.
Comments (15)
  • MichaelJ8
    , contributor
    Comments (471)
     
    5% of the branded market? If I am not mistaken that about 16.5 million$, if the branded market size is $330 million.....buy buy buy on this sell off!!! (please confirm the size of the branded market, I'm pretty sure its 330$ but i could be wrong, can someone confirm or deny?)
  • Andysud
    , contributor
    Comments (155)
     
    Unfortunately your letter is a day late and a dollar short Mr. Ahn. Mr. Feuerstein has done serious damage to your brand and to shareholder confidence in your company. I hope you prosecute to the full extent of the law.
  • At marketwatch.com a press release from a NYC law firm investigating claims on behalf of shareholders.Phone # given to call in the article
    Regards,Robert
  • Nice to see a response to all of the negative press.

     

    Speculative play in GALE and looking forward to a bounce come Monday...it is about time Galena took this step to refute thestreet.com...no mention of Jim Cramer and that is disappointing...
  • gatlingg
    , contributor
    Comments (233)
     
    also a balanced article in Wall St Cheat Sheet friday responding to the allegations contained in the Enhydris articles as well as AF
  • I am to assume that Mr. Ahn will not be appearing on Mad Money anytime soon....
  • zeeman1
    , contributor
    Comments (68)
     
    Wow, this letter is a joke!

     

    Instead of explaining their relation( terms, reason for termination) with the Dreamteam and reason and details of divesting by insiders (and then conveniently terminating their relation with dreamteam, all we get is a list of things they have achieved. If this is the best they can do, I feel comfortable to say that they are incompetent.

     

    Disclosure: No positions in Gale
  • fafatooey
    , contributor
    Comments (328)
     
    Blood is in the streets. Bought 2000 shares today at $3.60.
  • Why didn't they specifically respond to the allegations regarding the SA articles that were pulled? Has the marketing company released any statements ? To say that they don't feel it worthwhile to respond to certain media outlets is concerning. I'm not a fan of The Street but it's an article that warrants attention. Perhaps the regulators will look into this.
  • I have sizeable position in GALE. There is something really wrong with GALE management, first reckless selling and now inappropriate and silly response.

     

    Class Action lawyers got active on Friday, they will end up in jail if it turn out to be what it appear on the surface at for now....
  • ZenStudent
    , contributor
    Comments (19)
     
    Still not convinced by this press release, comes very late and leaves a lot unanswered. Still think this is a falling knife that hasn't hit bottom. Staying out and hope I feel stupid by the end of the month because there is a good core business here... Just too much noise.
  • donsker
    , contributor
    Comments (6)
     
    I hope the SEC investigates AF, the Street, and others over the concerted effort to manipulate the GALE's share price through these baseless stories. Now a law firm issues a press release (describing itself as "preeminent" -- lol), and claims it's "investigating" Galena.
    No credible law firm takes on a case without doing an investigation, nor files unless there is evidence of misrepresentations of fact made by mgmt and relied on by investors to invest [sorry shorts, you can't be plaintiffs because you didn't buy to invest in the company but to depress its price -- no damages to you even if these accusations were meritorious]. The credible firm will never file if there is no misrepresentation of fact [not opinion, but fact]. That investigative process done by credible firms takes months, not hours or days.
    Furthermore, I have seen nothing in all of the material generated recently of wrongdoing by the company. AF and the shorts have made many insinuations without factual support, and/or the facts they allege do not support the conclusions they want us to draw. For instance, promoting a company to get investor interest is done all the time, by every company, and is not illegal. AF and the shorts, with SA's help, points to ghost authors on the same promotional stories. Okay, but so what. Friday's SA bash piece was itself published by an anonymous writer who just two months before was saying the exact opposite -- without either telling us of that inconsistency, or explaining it away.
    Secondly, insiders exercised options earned as compensation and sold them. That is not illegal. Gale is engaged in a double blind Phase III study and does not know the results. Still, AF and the shorts insinuate that the insider sales means that management is bailing because presumably the results are bad. Where do they come to that conclusion? The fact that insiders exercised options -- that's it. AF never explains how the double blind study was breached for the results, or how the results in Phase III contradict the incredibly good results from Phase II.
    Until AF, the shorts, and the anonymous short "contributors" to SA can provide actual facts to support their conclusion, what we have is: (1) patent, overt stock manipulation, and (2) good buying opportunities for a company engaged in advances to rid/treat the scourge of cancer.
  • NOOPER
    , contributor
    Comments (3)
     
    why divest in shares if things are so positive and glowing? i took a hit and baled after losing $1/share..I've made more than I lost on GALE but after a one day huge sink I wanted to cut my losses short, for now, perhaps i'll take another shot in a month
  • riffat
    , contributor
    Comments (56)
     
    Dear Dr. Ahn:

     

    Dude, seriously? I am not a fan of AF either, but when did you realize that this letter was needed? Was it the day that the stock went down to $5? $4? Below $4? Also, why do you think that a single sentence addressing--no, only acknowledging--the two major price-plummeting issues is adequate?

     

    As a former investor, thank god I had the intuitive sense to sell before the prices truly tumbled.

     

    You have products that can potentially benefit hundreds of thousands around the world. It's time that you become a bit more honest with the people who are trying to make it happen (i.e., the investors).
  • roarkovertooey
    , contributor
    Comment (1)
     
    Simply acknowledging that you divested almost all of your interest does not restore confidence or undo the damage done. It was either a serious lapse in judgement or just pure unadulterated greed. In either case, it raises serious questions and demands serious answers. I'm so happy Anh and others made out like bandits on this, too bad it was at the expense of those of us who are long on GALE and really believe in what the company is trying to do. It would be nice if certain company leaders were faithful to the company, its mission, and its investors instead of purely lining their own pockets.