Galena Biopharma (NASDAQ: GALE)’s stock currently waning
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Biotech companies are never really an attraction when it comes for the investors to invest their money. The reason is simple that they bank upon the drugs they make, which often takes a long time to get approval and then putting them in the market. It’s a long process during which the business is hindered. That is why investors generally avoid such companies because of the sensitive nature of the stock and the lesser than usual payback. One such stock is of Galena Biopharma (NASDAQ: GALE) that caters to cancer patients. The companyy’s stock decreased by 13 percent last month after a slow third quarter.
Galena Biopharma (NASDAQ: GALE) had a fair year but last month turned out quite fluctuating for the company as the losses escalated to 13.2 million dollars which includes stock compensation. The overall loss came at 0.05 dollar a piece. Galena Biopharma (NASDAQ: GALE) made 1.6 million dollar in revenue, most of which came out from sales. The sale of Abstral, which is a cancer pain therapy drug by Galena Biopharma (NASDAQ: GALE), dwindled by 36 percent from the total projection set by the company. Abstral along with another drug called Zuplenz, which is still being processed are expected to take the sales from 20 million to 30 million. This will compensate for the money that is to be spent upon the stage three trials of the breast cancer vaccine NeuVax.
Galena Biopharma (NASDAQ: GALE) has also entered into a partnership with Lincoln Park Capital Fund to get finances up to 55 million dollars that will help the company go through the next three years to work on its projects. Lincoln Park will purchase 5 million shares of Galena Biopharma (NASDAQ: GALE) at 2 dollar a piece. This will be just an initiative. This shows that Galena Biopharma (NASDAQ: GALE) is low on finances and that they never had much finances in the bag in the first place. This will be off-putting to the potential investors in the market; keeping off of a low quarter, Galena Biopharma (NASDAQ: GALE) will have to work quite hard to regain the faith of the investors.
NeuVax trials will take more than two years or so which means expecting anything from it now is just plain foolishness. As for Abstral and Zuplenz, it will be a miracle if the two drugs manage to keep the company’s sales going. The company’s forecast differs from the analyst forecast and both of them are in contrast when it comes to being optimistic about the future. Galena Biopharma (NASDAQ: GALE) will make sales but it will need some time to make it on a substantial level.
Galena Biopharma (NASDAQ: GALE)’s cancer drugs have been quite impressive in the past but it’s a long process of getting approval and sending the drug to the market. Not only that, sales can fall anytime which could leave the company almost crippled. The company has work to do in order to stay afloat and be successful in the biotech business.