Dallas, Texas 09/10/2014 (FINANCIALSTRENDS) – Galena Biopharma Inc (NASDAQ:GALE) it appears is not getting it right on the sales front in much of 2014. The stock of this major stock has, over the year, dropped by over 52%.
The cause of the fall in Galena’s stock has been for four main reasons in the past year. The first major cause of the price fall has been the investigation by the Securities and Exchange Commission in March this year. Though GALE has not offered any commentary on the current investigations, it has however clarified that, “certain matters related to our company and an outside investor-relations firm we retained in 2013.”
Allegations of undisclosed paid-promotions by GALE have raised a furore for some time now. It has to be clarified that the GALE promotions are being considered illegal because the company failed to announce the same. Legally, companies which boost share prices through marketing firms, disclose ahead of the time they engage in such activities.
Galena Biopharma Inc (NASDAQ:GALE) has not brought information of paid-promotions to the public domain and there is enough and more room for thought, as subsequent SEC investigations continue.
More trouble for GALE
At a different phase, the strategy behind the acquisition of cancer pain tablet Abstral appears to have back-fired. The drug was bought in March 2013 from Orexo, as a means to mobilize immediate cash flow, from the sale of the drug which is already approved for sale by FDA. Disappointingly the sale of this cancer relief tablet has not been as expected. Where Galena Biopharma Inc (NASDAQ:GALE) expected sales to be in the region of $15 million for the full year, the real-time sales have been just $2.2 million in first quarter, followed by $2.3 million in second quarter.
These factors apart, the key reason for GALE poor show this year has been the lack of solid clinical trial results from its stockpile. The study called PRESENT is expected to post results only by end of 2016 to 2017.