Galena is a biopharmaceutical company involved in the development of oncology treatments. The company’s leading candidate is NeuVax, which is currently in Phase III trials for treating the recurrence of breast cancer. Right now, there's a high demand for small biotechnology companies with promising drug candidates. This is because a number of major patents are expiring, such as Lipitor and Seroquel IR, which means that manufacturers of these drugs are being forced to invest in new drugs to fill this major void.
Galena has a very strong recommendation from sell side analysts which have a unanimous buy rating on the stock. The mean sell side target price on the stock is $4.8, which is 50% above the current stock price. There are number of potential buyers of Galena, which include some leading players like AstraZeneca (NYSE: AZN) and Pfizer.
AstraZeneca recently decided to focus on three key areas, including Oncology. Galena would be a perfect fit for a company suffering from a weak pipeline and falling revenue such as AstraZeneca. The company currently has more than $8.5 billion in cash and can easily afford Galena worth around $200 million. AstraZeneca has already announced that it plans to make focused acquisitions and Galena will make a lot of sense for the struggling giant.
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