Galena Biopharma, Inc. GALE sold its oncology product, Zuplenz, to Midatech Pharma MTP. As per the deal’s terms, Galena is entitled to up to $29.75 million of cash payments, with $3.75 million of upfront cash and additional cash of up to $26 million as milestone payments. The transaction was announced on Dec 18, 2015.
We note that Zuplenz is approved for the prevention of highly and moderately emetogenic chemotherapy-induced nausea and vomiting (CINV), radiotherapy-induced nausea and vomiting (RINV), and post-operative nausea and vomiting (PONV) in adult patients. The potential market for Zuplenz is valued to reach up to $4.6 billion by 2018.
The divestiture of Zuplenz will allow Galena to advance its cancer immunotherapy clinical development pipeline, which currently has a phase III candidate – NeuVax. NeuVax is currently being evaluated for the prevention of breast cancer recurrence after a standard-of-care treatment in the adjuvant setting. Galena also plans to evaluate NeuVax in patients with ductal carcinoma in situ and in patients suffering from gastric cancer.
Meanwhile, another candidate in Galena’s pipeline, GALE-301, is currently in phase IIa for the treatment of ovarian and endometrial cancers.
On the other hand, Midatech anticipates that the acquisition of Zuplenz will leverage its commercial infrastructure in the U.S. following its recent acquisition of DARA BioSciences.
Galena Biopharma carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the health care sector include Baxalta Inc. BXLT and AstraZeneca plc AZN. Both stocks sport a Zacks Rank #1 (Strong Buy).
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