UPDATE: Oppenheimer Initiates Coverage on Galena Biopharma with Outperform Rating, $6 PT on NeuVax/Abstral Potential

In a report published Tuesday, Oppenheimer analyst Boris Peaker initiated coverage on

with an Outperform rating and $6.00 price target. In the report, Oppenheimer noted, “We are initiating coverage of Galena Biopharma (GALE) with an Outperform rating and a 12-18-month price target of $6. Our valuation specifically focuses on NeuVax, which we value at $6/share at this time. In our view, the reported Phase I/II data is encouraging and the commercial opportunity for this drug is quite substantial (~$5B worldwide at peak), if approved. Additionally, Abstral appears to have good traction in the initial stages of launch, and we believe that investors are slowly recognizing this drug's commercial potential. Although we do not estimate peak sales for Abstral at this time, we believe that it is a competitive fentanyl formulation and will find a clear niche in the market.” Galena Biopharma closed on Monday at $3.67.