The National Weather Service is well known for its efficiency in issuing warnings in good time when it detects the gathering of strong gales such as hurricane and tornadoes. However, the agency is not in the right position to detect the momentum that Galena Biopharma Inc. (NASDAQ: GALE) is gathering as it intends to bring in giant waves of prosperity for discerning investors.
Galena Biopharma is a $182 million biotechnology company that is focused on discovering, developing, and commercializing innovative targeted oncology treatments that address major unmet medical needs to advance the care for cancer. If you have any experience investing in healthcare stocks, you probably already know that patents have a lifespan and that a company will invariably start to lose money at the expiration of its patents because generics alternatives will flood the market. Thus, the key to a company’s long-term survival and profitability is the development of new products that can be patented.
If you look at the pipeline of Galena Biopharma as it concerns new product development, I am sure you will not be disappointed. I am particularly excited about the company’s flagship cancer vaccine candidate Neuvax. However, while we are constantly being advised not to count our chicks before they are hatched, I am confident that Neuvax has high chance of becoming a reality. For one, it was reported that the trial design has received a peculiar protocol assessment concurrence from the FDA as well as an update for the inclusion of the current National Comprehensive Cancer Network Guidelines.
The drug, which is currently in the Phase 3 trial stage, promises to be a major booster for Galena Biopharma if it makes its way to the shelves. The drug is set to debut in an entirely different league of the fight against cancer called immunotherapy. By the foregoing, Neuvax is poised to become the alternative treatment for breast cancer or better still it may become the main treatment for node-positive breast cancer. The topping of the dessert is that about 202,964 individuals are diagnosed with cancer in the U.S. yearly out of which 10% will be eligible to receive the Neuvax treatment.
And then it gets better with this; Galena Biopharma announced the signing of a definitive agreement to acquire Abstral (fentanyl) Sublingual Tablets from Orexo AB (STO: ORX) for sales and distribution in the United States. Abstral, which has proven effective in the management of breakthrough cancer pain, is an FDA approved drug that Galena Biopharma intends to commercialize in Q4 2013 and 2014. It may interest you to know that the market value for breakthrough pain in the United States is estimated to have reached $400 million and an increase of 3% annually is to be expected in the coming years.
Conclusively, we can expect the market entry of Abstral to pave the way for Neuvax by the time it is finally approved by the FDA. This assertion is made in view of fact that the sales of Abstral would have helped Galena in building business relationships with the potential subscribers of Neuvax. I am confident that such relationships will be instrumental in ensuring that Neuvax makes a smooth entry into the market when it finally debuts.