2 Small-Cap Biotechnology Stocks With Big Promise
Biotechnology stocks offer investors the potential for huge returns, but also carry a lot of risk. The biggest risk is volatility, which is usually the greatest around significant events/catalysts. Investors looking to invest in biotechnology stocks need to understand these events and the potential impact on the share price that may occur as a result. Below are two promising companies that face important catalysts and could see significant share price appreciation going into the events.
Galena Biopharma (NASDAQ:GALE) is a biotechnology company focused on discovering, developing and commercializing therapies addressing unmet medical needs using targeted biotherapeutics. The company is pursuing the development of cancer therapeutics using peptide-based immunotherapy products, including its main product candidate, NeuVax.
NeuVax is a peptide-based immunotherapy intended to reduce the recurrence of breast cancer in low-to-intermediate node positive HER-2 negative breast cancer patients not eligible for Herceptin.About 75 percent of all breast cancers are HER-2 negative. The vaccine has the potential to dramatically decrease the chances of early stage, node-positive breast cancers from spreading to other areas of the body or to keep it from recurring.
Late last year, Galena announced a partnership deal with Teva Pharmaceuticals (NYSE:TEVA) to develop and commercialize NeuVax in Israel. These partnership deals tend to foreshadow a bright future for the company. The reason for this is that it saves the smaller company producing the drug a lot of time and money. In this case, Galena can continue to focus on advancing the trials and Teva Pharmaceuticals will focus on establishing a distribution network and clearing any regulatory hurdles within Israel.