Jim Cramer: ‘Ring the Register’ on Galena Biopharma
Galena Biopharma (NASDAQ:GALE) has Cramer of MSNBC’s Mad Money talking. In the past three weeks, the stock has jumped nearly 50 percent year-to-date. Cramer notes that because the company is small, “with a market cap of about $750 million,” Galena is really only suitable for speculation, but it’s worth paying attention to, Cramer said via MSNBC.
Galena Biopharma is a Lake Oswego, Oregon-based company currently under the direction of CEO Mark Ahn who spoke with Cramer on Thursday’s show. The company develops cancer treatments, most notably NeuVax, which is “a vaccine designed to prevent the recurrence of breast cancer in people who have already survived the disease.”
Amongst NeuVax’s skeptics are Adam Feuerstein, a biotech expert at Cramer’s own, theStreet.com. Feuerstein has been “relentlessly negative about the science behind the drug’s previous phase II study,” Cramer said. Further, “a University of Pennsylvania study published about a year ago said that cancer vaccines such as NeuVax, which target a specific antigen, are ineffective,” he continued. Feuerstein’s critique “hasn’t prevented the stock from roaring higher,” however, he noted.
Mark Ahn addressed the concerns regarding NeuVax’s ineffectiveness, saying that, “Of the patients in the Phase II study of NeuVax, 0 percent of those patients had a recurrence of cancer,” per MSNBC’s Mad Money. Galena’s NeuVax has some impressive potential, despite what naysayers might think, however. Galena is partnering with Dr. Reddy’s laboratories, based in India, in order to develop the vaccine’s potential as a treatment for gastric cancer, which are particularly prevalent on the continent.
Despite the company’s impressive gains, Cramer, who doesn’t typically advise going after a stock that’s already climbed 50 percent, says that, “If you’re long, after Galena’s incredible run I think you’d be nuts not to ring the register.” He goes on to say, however, that Galena is worth watching and suggests, “Read the research. Learn about the company and the drug. The path to profits begins with an informed investor.”