Galena Biopharma

Galena Biopharma, Inc.

Company type	Public (former)
Industry	Pharmaceutical
Predecessor	RXi Pharmaceuticals
Founded	November 2006 (2006-11) in Worcester, Massachusetts, United States
Founder	Craig Mello (co-founder of RXi Pharmaceuticals)
Defunct	2017
Fate	Acquired by Sellas Life Sciences Group Ltd. through reverse merger and rebranded as Sellas Life Sciences Group, Inc.
Successor	Sellas Life Sciences Group, Inc.
Headquarters	San Ramon , United States
Area served	Worldwide
Key people	Mark Schwartz (President and CEO)
Products	NeuVax, Abstral Sublingual, Anagrelide (GALE-401), GALE-301, GALE-302
Number of employees	60 (2014)

Galena Biopharma, Inc.—initially known as RXi Pharmaceuticals—was a publicly listed pharmaceutical firm based in San Ramon, California. Originally established in Worcester, Massachusetts, the company moved its operations to Oregon in 2011 before settling in California by 2015. Mark Schwartz held the roles of president and CEO. The company’s flagship product was NeuVax, an oncology-focused therapeutic. In 2017, Sellas Life Sciences Group Ltd. acquired Galena Biopharma through a reverse merger, subsequently rebranding it as Sellas Life Sciences Group, Inc. (). In 2014, the company recorded revenues of $7.4 million and maintained a workforce of roughly 60 employees.

History

In November 2006, Argonaut Pharmaceuticals, Inc. changed its name to RXi Pharmaceuticals Corporation. As a subsidiary of CytRx Corp., RXi secured $15 million in funding from CytRx in April 2007. The company, co-founded by Nobel Prize winner Craig Mello, licensed RNA interference (RNAi) technology from TriLink Biotechnologies in September 2007.

In March 2011, RXi completed a $7 million acquisition of Apthera, Inc., thereby obtaining the breast cancer treatment candidate NeuVax. The FDA approved NeuVax to enter phase III clinical trials in June of that year.

By September 2011, RXi spun off its cancer therapeutics segment into a new entity named Galena Biopharma Inc., headquartered in Lake Oswego, Oregon. RXi retained its RNAi technology portfolio and continued public trading on the Massachusetts exchange. Galena expanded its operations by acquiring Mills Pharmaceuticals in January 2014 and shifted its headquarters to Portland by April 2014.

In November 2011, Galena entered into a partnership with Genentech to conduct combination treatment trials involving their cancer drugs. This collaboration centers on pairing NeuVax with Herceptin in ongoing phase II studies, exemplifying a strategic approach to strengthen their position within oncology therapeutics markets.

Leadership

Mark Ahn succeeded Noah Beerman as president and CEO in March 2011. Ahn stepped down in August 2014 and was replaced by Mark Schwartz. On January 31, 2017, Schwartz resigned amid announcements that the company was exploring strategic alternatives to enhance shareholder value.

Stock

RXi became publicly traded on Nasdaq under the ticker symbol RXII in March 2008. CytRx maintained a 49% stake while distributing shares to existing investors. Fidelity Investments contributed $8.5 million in May 2008, followed by a $25 million private equity infusion from Yorkville Capital in February 2009. Between 2010 and 2011, the company was awarded over $1 million in NIH grants. By August 2010, RXi had grown to approximately 30 employees and raised around $12 million through a stock offering in April 2011. Nonetheless, the company reported an $11.5 million loss for the year 2011.

In November 2012, an anonymous report triggered a decline in stock price; Galena responded by filing litigation alleging false statements and manipulation of shares. In 2014, the company became embroiled in a fraudulent stock promotion scandal involving payments made to MissionIR’s DreamTeam brand aimed at inflating share prices. This disclosure precipitated a roughly 20% drop in stock value and prompted SEC investigations alongside multiple lawsuits accusing the company of misleading shareholders and engaging in insider trading.

By March 2015, Galena’s shares had dropped by 23%, driven by dilution effects and weaker-than-anticipated sales of its product Abstral. Additional pressure came from insider-trading lawsuits that further impacted market confidence. Despite these challenges, Zacks Investment Research identified Galena as a potential earnings outperformer. The CEO highlighted positive aspects of the business and noted that ongoing lawsuits were covered under directors’ and officers’ liability insurance policies.

In 2015, the firm relocated its headquarters to San Ramon, California, strategically positioning itself within the Bay Area’s biotechnology sector hub.

Stock Promotion Controversy

Galena's connection to undisclosed deceptive stock promotion practices led to broader investigations into comparable activities within the biotech sector. Investor Richard Pearson revealed DreamTeam's involvement in marketing Galena, CytRx, and other companies through various media channels. In April 2017, the U.S. Securities and Exchange Commission initiated enforcement proceedings against 27 parties associated with stock promotion schemes, encompassing three publicly traded companies, seven promotional firms, two chief executives, six individuals, and nine writers.

Merger with Sellas Life Sciences

In 2017, Galena Biopharma combined operations with Sellas Life Sciences Group Ltd., a private oncology firm, through an all-stock transaction, creating Sellas Life Science Group. The newly formed organization concentrated on advancing innovative cancer therapies.

Products

Galena acquired the investigational breast cancer therapy NeuVax in 2011 and is conducting phase II clinical trials evaluating its combination with Genentech's Herceptin.

In 2013, the company introduced its first internally developed product, the cancer pain relief medication Abstral Sublingual.

The FDA granted approval for phase III clinical studies in December 2016 for controlled-release Anagrelide (GALE-401), aimed at treating essential thrombocytosis.

Immunotherapy candidates GALE-301 and GALE-302 are undergoing phase I and II trials targeting ovarian and breast cancers.