Research Desk Line-up: Blueprint Medicines Post Earnings Coverage
LONDON, UK / ACCESSWIRE / August 10, 2017 / Pro-Trader Daily takes a look at the latest corporate events and news making the headlines for Galena Biopharma, Inc. (NASDAQ: GALE) ("Galena"), following which we have published a free report that can be viewed by signing up at http://protraderdaily.com/optin/'symbol=GALE. The Company announced on August 08, 2017, that the Company has entered into a stock definitive merger agreement with SELLAS Life Sciences Group Ltd ("SELLAS"), a privately-held, oncology-focused, clinical stage biopharmaceutical company. For immediate access to our complimentary reports, including today's coverage, register for free now at:
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Following the agreement, SELLAS will merge into and become an indirect, wholly-owned subsidiary of Galena. The combined Company will be renamed SELLAS Life Science Group, focused on the development of novel treatments for cancer. The shares of the new entity are expected to continue trading on the NASDAQ Capital Market under a new ticker symbol - "SLS".
Background of the Transaction
On January 31, 2017, Galena announced the initiation of a process to explore a range of strategic alternatives focused on maximizing shareholder value. After a thorough review of available alternatives and extensive diligence and negotiation with SELLAS, Galena's Board of Directors unanimously approved to enter into a definitive merger agreement with SELLAS.
Insights of SELLAS and Galena's Work
The combined company will feature a late-stage pipeline led by novel immunotherapies targeting a broad range of indications in hematology and solid tumors. SELLAS licenses the rights to its lead asset, galinpepimut-S, (GPS), a novel WT1 antigen-targeting immunotherapy. GPS is initially being developed for the treatment of acute myeloid leukemia (AML) and is Phase-3-ready in this setting.
SELLAS has also successfully completed a Phase-2 study of GPS in malignant pleural mesothelioma (MPM), and its end-of-Phase-2 meetings with the US Food and Drug Administration (FDA) for GPS in both indications.
SELLAS has been granted orphan drug designation from the US FDA and the European Medicines Agency (EMA) and been given FDA fast track status for both AML and MPM. In addition, SELLAS is currently conducting two Phase-2 trials of GPS in multiple myeloma as well as a combination trial in ovarian cancer with nivolumab (OPDIVO®; Bristol-Myers Squibb), and is currently preparing for combination trials for GPS in combination with another checkpoint inhibitor.
Galena's lead immunotherapy program, NeuVax™ (nelipepimut-S), is currently in three Phase-2 investigator-sponsored clinical trials in breast cancer, and these trials will remain ongoing. Galena's other development programs - GALE-401, a controlled release version of anagrelide that is Phase-3-ready; and GALE-301/GALE-302, an earlier stage cancer immunotherapy program targeting folate binding protein - are currently being evaluated for potential internal development or strategic partnership.
Combined Company to Create Multiple Development and Partnering Opportunities
Commenting on the merger agreement, Dr. Angelos Stergiou, SELLAS's Chief Executive Officer, stated:
"This transaction with Galena is an important step for SELLAS and the advancement of our lead product candidate, GPS, through important development milestones. We believe GPS has the potential to benefit a wide range of cancer patients and become an important piece of the cancer immunotherapy treatment landscape as both a monotherapy and in combination with other agents, particularly checkpoint inhibitors. NeuVax™ strengthens our platform and may provide important value infections as the clinical trials progress. The combined pipeline, with significant near-term milestones, creates multiple development and partnering opportunities to create value as these programs evolve."
The merger to Benefit Patients and Shareholders from Clinical Development Efforts
Stephen F. Ghiglieri, Galena's Interim Chief Executive Officer and Chief Financial Officer, added:
"Following a thorough review of strategic alternatives and extensive search for a merger partner, we selected SELLAS due to the depth of their cancer immunotherapy pipeline which is clearly complementary to Galena's development programs. In evaluating many alternatives, SELLAS stood out in terms of its vision, strategic alignment with Galena's cancer immunotherapy programs, and near term opportunity for value creation for our shareholders. We are encouraged by the GPS data generated to date and the potential advancement of that program into clinical trials in several indications. I, and our board of directors believe that patients and our shareholders have the opportunity to benefit greatly from the clinical development efforts that the combined companies will undertake."
Terms of the Agreement
Pursuant to the agreement, SELLAS's existing shareholders will receive newly issued shares of Galena's common stock. Assuming completion of the proposed merger, on a pro-forma basis, Galena's stock and warrant holders are likely to own about 32.5%, and SELLAS's shareholders will own approximately 67.5% of the combined company.
The transaction has also been unanimously approved by SELLAS' Board of Directors and a majority of SELLAS' shareholders are likely to vote in favor of the transaction. The proposed merger is expected to close in Q4 2017 and it is subject to the customary closing conditions and approval of Galena's stockholders.
New Management and Organization
Upon completion of the merger, Angelos M. Stergiou, MD, SCD h.c., Chief Executive Officer of SELLAS, will become the CEO of the combined company. Galena's Board of Directors will resign, and a new Board of Directors consisting of seven members, including five representatives appointed by SELLAS, two of whom will be independent directors, and two representatives designated by Galena, will be constituted. SELLAS' management team will manage the combined company.
About Candidate Galinpepimut-S, SELLAS Lead Product
Galinpepimut-S is a WT1 antigen-targeting immunotherapy. The WT1 antigen is one of the most widely expressed cancer antigens in multiple malignances. Galinpepimut-S is a multi-peptide product with heteroclitic-modifications that enhance immunity and duration of the immune response against the WT1 antigen independent of a patient's underlying genetics (HLA types) and elicits CD4 and CD8 immune responses with clinical efficacy and favorable safety profile.
Last Close Stock Review
At the close of trading session on Wednesday, August 09, 2017, Galena Biopharma's stock price declined 7.07% to end the day at $0.38. A total volume of 1.24 million shares were exchanged during the session, which was above the 3-month average volume of 591.15 thousand shares. The Company's shares are trading at a PE ratio of 1.73. At Wednesday's closing price, the stock's net capitalization stands at $14.02 million.
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