Galena Biopharma Reports Second Quarter 2012 Financial Results

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About Galena Biopharma

Galena Biopharma, Inc. (Nasdaq:GALE) is a Portland, Oregon-based biopharmaceutical company that develops innovative, targeted oncology treatments that address major unmet medical needs to advance cancer care. For more information please visit us at www.galenabiopharma.com .

The Galena Biopharma, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=10647

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.  Such statements include, but are not limited to, statements about the possible benefits of the recent developments described above, as well as statements about expectations, plans and prospects for the development of Galena's product candidates.  These forward-looking statements are subject to a number of risks, uncertainties and assumptions, including those identified under "Risk Factors" in Galena's Annual Report on Form 10-K for the year ended December 31, 2011 filed with the SEC.  Actual results may differ materially from those contemplated by these forward-looking statements. Galena does not undertake to update any of these forward-looking statements to reflect a change in its views or events or circumstances that occur after the date of this press release.

Galena Biopharma

(A Development Stage Company)

CONDENSED CONSOLIDATED STATEMENTS OF EXPENSES  (Amounts in thousands, except share and per share data)

	For the Three Months Ended June 30, 2012	For the Three Months Ended June 30, 2011	For the Six Months Ended June 30, 2012		For the Six Months Ended June 30, 2011
Research and development expense	$ 3,720	$ 329	$ 6,384		$ 390
General and administrative expense	1,963	1,949	3,709		5,068
Operating loss	(5,683)	(2,278)	(10,093)		(5,458)
Other income (expense), net	5,910	682	(13,220)		2,116
Income (loss) from continuing operations	227	(1,596)	(23,313)		(3,342)
Loss from discontinued operations	(423)	(2,158)	(1,644)		(4,257)
Net loss	$ (196)	$ (3,754)	$ (24,957)		$ (7,599)
Net income (loss) per common share:
Basic income (loss) per share, continuing operations	$ 0.003	$ (0.04)	$ (0.41)		$ (0.11)
Diluted loss per share, continuing operations	$ (0.03)	$ (0.04)	$ (0.41)		$ (0.11)
Basic and diluted loss per share, discontinued operations	$ (0.01)	$ (0.06)	$ (0.03)		$ (0.14)
Weighted average common shares outstanding:
Basic	65,112,147	38,568,501	56,554,160		29,492,756
Diluted	67,177,572	38,568,501	56,554,160		29,492,756

Galena Biopharma
(A Development Stage Company)
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands)
	June 30,	December 31,
	2012	2011
ASSETS
Current assets:
Cash and cash equivalents	$ 19,228	$ 11,433
Restricted cash	101	101
Prepaid expenses	760	276
Total current assets	20,089	11,810
Equipment and furnishings, net	34	393
In-process research and development	12,864	12,864
Goodwill	5,898	5,898
Deposits	74	3
Total assets	38,959	$ 30,968
LIABILITIES AND STOCKHOLDERS' EQUITY   Current liabilities:
Accounts payable	$ 1,706	$ 2,155
Accrued expenses and other current liabilities	1,478	2,984
Current maturities of capital lease obligations	12	35
Convertible notes payable	--	500
Fair value of warrants potentially settleable in cash	5,229	3,746
Current contingent consideration	897	1,782
Total current liabilities	9,322	11,202
Capital lease obligations, net of current maturities	45	32
Deferred tax liability, non-current	5,053	5,053
Contingent consideration, net of current portion	5,423	4,569
Total liabilities	19,843	20,856
Stockholders' equity	19,116	10,112
Total liabilities and stockholders' equity	$ 38,959	$  30,968

CONTACT: Madeline Hatton
         Toll free: +1 (855) 855-GALE (4253), ext. 109
         [e-mail]
         
         or
         
         Remy Bernarda
         IR Sense, LLC
         [phone]
         [e-mail]

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