Galena Biopharma Announces Pricing Of Public Offering Of Common Stock And Warrants

LAKE OSWEGO, Ore., Dec. 18, 2012 (GLOBE NEWSWIRE) -- Galena Biopharma (Nasdaq:GALE) announced today the pricing of an underwritten public offering of 15,156,250 units at a public offering price of $1.60 per unit, or total gross proceeds of $24.25 million. Each unit consists of one share of common stock, and a warrant to purchase 0.5 share of common stock at an exercise price of $1.90 per share. The warrants are immediately exercisable and expire on the fifth anniversary of the date of issuance. The shares of common stock and warrants are immediately separable and will be issued separately. The offering is expected to close on December 21, 2012, subject to customary closing conditions.

Piper Jaffray & Co. is acting as the sole book-running manager for the offering, with JMP Securities LLC acting as a co-manager.

Galena intends to use the net proceeds from the offering to conduct its ongoing Phase 3 clinical trial for NeuVax™, its Phase 1/2 clinical trial for Folate Binding Protein-E39 (FBP), the planned Phase 2 clinical trial for NeuVax™ in combination with trastuzumab (Herceptin®), as well as for general corporate purposes.

The securities described above are being offered by Galena pursuant to a shelf registration statement previously filed with the Securities and Exchange Commission (SEC), which the SEC declared effective on May 28, 2010. A preliminary prospectus supplement and accompanying prospectus related to the offering was filed with the SEC on December 17, 2012. A final prospectus supplement related to the offering will be filed with the SEC and will be available on the SEC's website located at www.sec.gov. Copies of the preliminary prospectus supplement and the accompanying prospectus relating to this offering may be obtained by contacting Piper Jaffray & Co., Attention: Prospectus Department, 800 Nicollet Mall, Suite 800, Minneapolis, MN 55402, or by telephone at [phone], or by e-mail at [e-mail].

This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities described herein, nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or other jurisdiction.

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