Lion Biotechnologies (LBIO) disclosed in a regulatory filing that on April 23 the company received a subpoena from the SEC that stated that the staff of the SEC is conducting an investigation "In the Matter of Galena Biopharma (GALE)" and that the subpoena was issued to Lion as part of the foregoing investigation of the unaffiliated, publicly-held biopharmaceutical company. The SEC’s subpoena and accompanying letter do not indicate whether Lion Biotechnologies is, or is not, under investigation, said the company, adding that it has contacted the SEC’s staff regarding the subpoena, and the company is cooperating with the SEC. The subpoena requires the company to give the SEC, among other materials, all communications between anyone at the company and certain persons and entities, which include investor-relations firms and persons associated with the investor-relations firms, all documents related to the listed persons and entities, all articles regarding the company posted on certain equity research or other financial websites, and documents and communications related to individuals who post or have posted articles regarding the company on equity research or other financial websites. Galena Biopharma has previously stated that the SEC is investigating certain matters relating to Galena and an outside investor-relations firm that it retained in 2013, according to Lion Biotechnologies.

Endocyte, Inc. (ECYT) and partner Merck (MRK) withdrew their conditional marketing authorization applications (CMA) to the European Medicines Agency (EMA.TO) for their oncology candidate, vintafolide, and companion imaging components - imaging agent etarfolatide and intravenous (:IV) folic acid. The companies were looking to get the candidate approved in combination with pegylated liposomal doxorubicin (PLD) for the treatment of folate receptor-positive, platinum-resistant ovarian cancer.

Endocyte and Merck’s decision to withdraw the applications was based on further analysis of data from the phase III PROCEED study. We remind investors that earlier this month, patient enrolment in the phase III PROCEED study on vintafolide was stopped following the Data Safety Monitoring Board’s (:DSMB) recommendation to discontinue the study since vintafolide did not meet the primary endpoint measured by progression-free survival (PFS) in patients suffering from platinum-resistant ovarian cancer. The companies intend to terminate this study.

Meanwhile, Endocyte and Merck are continuing to evaluate vintafolide in the phase IIb TARGET study in patients suffering from non-small cell lung cancer (:NSCLC). The study will evaluate the safety and efficacy of vintafolide in second line NSCLC as a single agent and in combination with Taxotere. Results are expected in late 2014.

The failure of vintafolide in the ovarian cancer study is a major setback for Endocyte. We expect investor focus to remain on pipeline updates from the company.

Endocyte carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the biotech sector include Gilead Sciences Inc. (GILD) and Alexion Pharmaceuticals, Inc. (ALXN). While Gilead carries a Zacks Rank #1 (Strong Buy), Alexion holds a Zacks Rank #2 (Buy).

The SEC is actively investigating Galena Biopharma (GALE) and the hiring of the now-infamous stock promotions firm The DreamTeam Group.

How do I know this? Lion Biotechnologies (LBIO) received an SEC subpoena on April 23, related to an investigation "In the Matter of Galena Biopharma Inc. File No. HO 12356," according to a disclosure in Lion's 10-Q.


On April 23, 2014, the Company received a subpoena from the Securities Exchange Commission (the "SEC") that stated that the staff of the SEC is conducting an investigation In the Matter of Galena Biopharma, Inc. File No. HO 12356 and that the subpoena was issued to the Company as part of the foregoing investigation. Galena Biopharma is an unaffiliated, publicly-held biopharmaceutical company. In the Form 10-K that Galena Biopharma, Inc. filed with the SEC on March 17, 2014, Galena Biopharma stated that the SEC is investigating certain matters relating to Galena Biopharma and an outside investor-relations firm that it retained in 2013. The SEC's subpoena and accompanying letter do not indicate whether the Company is, or is not, under investigation. The Company has contacted the SEC's staff regarding the subpoena, and the Company is cooperating with the SEC.

Lion and Galena are not related, so why are SEC investigators issuing a subpoena to Lion?

The answer is not entirely clear, but here's what Lion says in its 10-Q:


The subpoena requires the Company to give the SEC, among other materials, all communications between anyone at the Company and certain persons and entities (which include investor-relations firms and persons associated with the investor-relations firms), all documents related to the listed persons and entities, all articles regarding the Company posted on certain equity research or other financial websites, and documents and communications related to individuals who post or have posted articles regarding the Company on equity research or other financial websites.

I have a theory about what's going on, just speculation, no proof, but here goes. Lion Bio is run by CEO Manish Singh. Before joining Lion, Singh was CEO of ImmunoCellular Therapeutics (IMUC), which was a client of The DreamTeam Group.







The other commonality is Sanford Hillsberg, the chairman of Galena's board and a director on Lion's board.

On Feb. 12, TheStreet published a story documenting how Galena paid an investor relations firm, The DreamTeam Group, to engage in a stock-promotion campaign on behalf of the company. The DreamTeam's work for Galena included publishing promotional articles written under false names on the investor web site Seeking Alpha.

Aided by this promotional campaign, Galena shares tripled in value from last summer. Coincidence or not, Galena insiders, including CEO Mark Ahn, made millions of dollars by selling company stock in January.

Galena disclosed an SEC investigation into these activities on March 18.

Lion Biotechnologies (LBIO) disclosed in a regulatory filing that on April 23 the company received a subpoena from the SEC that stated that the staff of the SEC is conducting an investigation "In the Matter of Galena Biopharma (GALE)" and that the subpoena was issued to Lion as part of the foregoing investigation of the unaffiliated, publicly-held biopharmaceutical company. The SEC’s subpoena and accompanying letter do not indicate whether Lion Biotechnologies is, or is not, under investigation, said the company, adding that it has contacted the SEC’s staff regarding the subpoena, and the company is cooperating with the SEC. The subpoena requires the company to give the SEC, among other materials, all communications between anyone at the company and certain persons and entities, which include investor-relations firms and persons associated with the investor-relations firms, all documents related to the listed persons and entities, all articles regarding the company posted on certain equity research or other financial websites, and documents and communications related to individuals who post or have posted articles regarding the company on equity research or other financial websites. Galena Biopharma has previously stated that the SEC is investigating certain matters relating to Galena and an outside investor-relations firm that it retained in 2013, according to Lion Biotechnologies.

I know it's taking time but what is there to really dislike?

2.58 GALE doing pretty well lately.

Shorts... not so much

Just the facts. The real facts

the Company instructed McClelland Labs to cease the leaching process of the Van Deemen samples. Despite the fact that gold was still being realized, the curve was only increasing incrementally. While it is customary to leach until the curve flattens, the final results/report from McClelland is required to complete the Company's preliminary plan of operation.

I see a .30 plus rise in pps tomorrow, we should be in the 3s by eow, and then 4,5,6...

Buying more at 2.48 today.

Just the facts