Galena Promoting Experimental Breast Cancer Drug With Faux News Articles Again
As we all know, the Securities and Exchange Commission is investigating Galena Biopharma (GALE - Get Report) for its role in the "DreamTeam Group" stock-promotion scandal. Galena paid an investor relations firm, The DreamTeam Group, to engage in a stock-promotion campaign on behalf of the company. The DreamTeam's work for Galena included publishing promotional articles written under false names on the investor web site Seeking Alpha.
If you thought Galena would lay low while SEC investigators dig into its business practices, you'd be mistaken. Galena is now paying a different marketing firm to create promotions for its experimental breast cancer vaccine Neuvax. These Neuvax ads are dressed up to look like legitimate news articles, except for the small disclaimer labeling them as "sponsored content paid for by a third party..."
Here's a partial snapshot the Galena ad, published in the Chicago Tribune:
The faux article goes on to discuss Attenburg's participation in the Neuvax phase II study and ends with a pitch for Galena's ongoing Neuvax phase III study.
Is the ad misleading? Is Galena promoting an unproved drug in violation of FDA regulations? Weigh in below.