Galena Biopharma 'Sell The News' Trade Is Working Like A Charm

Shares of Galena Biopharma Inc (NASDAQ:GALE) are up nearly 50 percent Monday after the company announced the results from a Data Safety Monitoring Board (DSMB) meeting related to two investigator-sponsored (IST) combination clinical trials of NeuVax with trastuzumab.

According to the press release, the DSMB ruled that there were no safety concerns with the combination trials and they are allowed to continue.

Last year, a NeuVax Phase 3 PRESENT trial was terminated early.

“The recommendations from the DSMB are very positive for NeuVax in combination with trastuzumab as there were no safety concerns and the studies were not deemed futile,” Galena chief medical officer Bijan Nejadnik said.

While the market clearly sees the news as a positive for the stock, others aren’t so convinced.

Martin Shkreli posted on Facebook that traders should be shorting Monday’s big move, calling the PR “fake news.”

Shkreli was last seen bashing Mallinckrodt PLC (NYSE:MNK) for alleged non-competetive practices.

TheStreet senior columnist Adam Feuerstein agrees.

When asked about Galena on Twitter, Feuerstein said the news was “Irrelevant. Desperate. Sorta funny. Meaningless.”

So far, shorting the big jump in Galena has been the right move. After peaking at $2.41 in early Monday trading, shares have since cooled to $1.80. Anyone who sold at the peak can now cover for a nice 25 percent gain.