Hello my friends I hope you had a swell Friday (Don’t know why I just used the word “swell” just now but I guess it fits lol). I don’t like Fridays that much, because it is hard to find something to write about. Not because I’m not capable, but because there is hardly any news on Thursdays through Fridays. Today though we can look at a stock that I like very much that has gone up significantly over the last few weeks. Matter of fact it had gone up around 60% or more in the month of November. I will talk about it, and I will point out if it has room to run higher. The stock I’m talking about is Galena Biopharma (NASDAQ:GALE), and it has a big opportunity to capitalize on its NeuVax vaccine.
NeuVax is a vaccine being developed to treat a couple types of cancer like prostate cancer, and ovarian cancer. The main trial though is a phase 3 trial with Neuvax in patients with HER-2 Negative Breast cancer. Okay don’t panic here in case you are, I am going t explain what HER-2 negative breast cancer is. HER-2 negative breast cancer is where the patients are not eligible for Herceptin which is the current standard of care treatment for breast cancer. Herceptin was developed by Roche (OTCQX:RHHBY), and Genetech!
The way the technology of Neuvax works is that it has an E75 peptide that binds to HLA-A2 and HLA-A3 molecules on the surface of tumor cells (cancerous cells). From here the binded E75 peptide together with the HLA molecules, sends a signal to the immune system. The immune system then is able to only target the cancerous cells, and it knows to do this because it has been “educated” to attack only the cells with HER2 expressions (HLA molecules). In essence think of the T-cells of your body being trained to memorize and attack only a set of molecules that pose a threat, while leaving the others alone. To put it another way think of the T-cells of NeuVax being a police officer targeting only HER2 cancerous cells ( Gang members), while leaving healthy white cells (pedestrians) alone. Okay the comparison is not that great lol, but you should get the idea. For more information on how NeuVax works check out this video from the Galena Biopharma website.
So why has the Galena stock gone up so much? In essence more people realized the potential of Abstral, which is a drug that Galena had acquired to treat patients with pain associated with a variety of cancers. Thus far the company has exceeded its estimates for sales, which have been substantially higher than originally thought. So in part this could be a part of the reason why Galena has run up so much over the last few weeks. I think though within the next few months another run up could happen, because of institutional buying since Galena is in phase 3 for breast cancer. So I expect another big run in the coming months, and if you haven’t initiated a position I would say wait a few days for Galena to drop a bit, then it would be a good time to dip your feet in (Don’t worry you are not dipping your feet into poison……….maybe lol). Going forward though I think that Galena has a huge chance to capture a big market, which includes a lot of Roche’s Revenue. So a lot of hope is riding on Neuvax for breast cancer patients, and if it is successful in phase 3 then I expect a huge gap up in share price. I hope you all have a great weekend, and please attempt to stay out of trouble if you can haha. Invest wisely, and remember friends “Due Diligence Creates The Best Picks In The Biotech Sector”!