Galena Biopharma (GALE) is a good company that’s been hit hard by an SEC investigation that has sent its GALE stock falling hard.
Galena Biopharma — which specializes in the development of oncology treatments for cancer treatment – is currently under investigation by the Securities and Exchange Commission for alleged trading violations.
GALE stock has fallen some 16% in the past several days.
Previously, the company had been flying high.
Via Seeking Alpha:
The company has a good product with Abstral that has been commercialized, a recent acquisition of Mills Pharmaceuticals, and several good drugs in the pipeline, including Neuvax.
According to federal investigators, it’s being claimed that Galena BioPharma “hired stock promotion companies to tout the company stock of which some of the tactics that were used resemble stock promotion schemes. It is also being claimed the company insiders have been making millions of dollars as a result of inside trading of the company’s shares.”
Insiders are urging investors to stay steer clear of GALE, though despite the allegations, their development products such as Abstral, Neuvax, and GALE-401 are expected to be a success.
GALE stock is down 43% year to date.