Galena Biopharma fka GALE

[justthefacts1]

Galena's two-sided future

Summary
•For all the positive results from NeuVax clinical studies, the ethical shortcomings of Galena's management mean that the future of the company is uncertain.

Galena's two-sided future
Galena released its 2013 results Monday, March 17. Everything was going hunky-dory until the part that talks about the company being investigated by the SEC. To be honest, the results were quite impressive and they, to some extent, give assurance that the company is headed in the right direction.

In fact, that Abstral's sales came in within the company's forecast of $1.5 to $3 million gives hope that the new forecast of $11 million to $15 million is achievable. However, the ongoing SEC investigation is a big dent on the image of the management at Galena.

I don't expect this to affect the approval of NeuVax -- as long as it genuinely helps cancer patients. And considering the positive signals so far, I think the drug is genuinely helpful. Therefore, without being emotional, the long-term case for this company looks positive.

However, since emotions can't be taken out of a discussion that involves the hopes of cancer patients, we need to take a second look. Truth be told, regardless of how promising the drug is, it's so unethical and heartless of anyone to want to profit at the expense of dying cancer patients.

It gives a feeling that the execs at Galena are there, first, to make profits before thinking of helping the world. If it had never happened, we would hardly think of it ever happening. But now that it has happened, there is every chance that something as callous as this could happen in future. In fact, no one can say for sure that the company can't tamper with clinical results.

Therefore, in reality, the long-term future of the company hinges on hopes that the management would learn from this, and change for the better - which is uncertain. In view of this, investors might be better off without positions in this company.

http://seekingalpha.com/article/2140333-are-these-three-biotech-companies-still-worth-a-gamble