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Galena Biopharma Announces Closing of Over-Allotment Option, Increasing Total Gross Proceeds to $43.7 Million

PORTLAND, Ore., April 10, 2015 (GLOBE NEWSWIRE) -- Galena Biopharma, Inc. (Nasdaq:GALE), a biopharmaceutical company developing and commercializing innovative, targeted oncology therapeutics that address major medical needs across the full spectrum of cancer care, today announced the closing of the exercise of the underwriters' option to purchase an additional 3,653,846 shares of common stock of Galena at a price of $1.457 per share as part of the firm commitment underwritten offering that closed initially on March 18, 2015.

The additional net proceeds to Galena from the exercise of the option with respect to the shares are approximately $5.4 million, bringing the total net proceeds to Galena from the offering to approximately $40.8 million, after deducting underwriting discounts and commissions and estimated offering expenses payable by Galena.

Raymond James & Associates, Inc. acted as the sole book-running manager for the offering. Roth Capital Partners acted as lead manager, and Maxim Group LLC, Noble Life Science Partners, and MLV & Co. LLC acted as co-managers.

Galena intends to use the net proceeds from the offering to fund its operations, including the ongoing commercialization of Abstral® (fentanyl) Sublingual Tablets and Zuplenz® (ondansetron) Oral Soluble Film, its ongoing Phase 3 PRESENT study and other clinical trials of its product candidates, and for other working capital and general corporate purposes.

The securities described above were issued by the company pursuant to a shelf registration statement on Form S-3 previously filed with and declared effective by the Securities and Exchange Commission (SEC). A prospectus supplement and accompanying prospectus related to the offering was filed with the SEC on March 13, 2015. Electronic copies of the prospectus supplement and accompanying prospectus may be obtained from Raymond James, Attention: Equity Syndicate, 880 Carillon Parkway, St. Petersburg, Florida, or by telephone at (800) 248-8863, or e-mail at prospectus@raymondjames.com, or by accessing the SEC's website at www.sec.gov.

About Galena Biopharma

Galena Biopharma, Inc. (Nasdaq:GALE) is a biopharmaceutical company developing and commercializing innovative, targeted oncology therapeutics that address major medical needs across the full spectrum of cancer care. Galena's development portfolio ranges from mid- to late-stage clinical assets, including a robust immunotherapy program led by NeuVax™ (nelipepimut-S) currently in an international, Phase 3 clinical trial. The Company's commercial drugs include Abstral® (fentanyl) Sublingual Tablets and Zuplenz® (ondansetron) Oral Soluble Film. Collectively, Galena's clinical and commercial strategy focuses on identifying and advancing therapeutic opportunities to improve cancer care, from direct treatment of the disease to the reduction of its debilitating side-effects. For more information, visit www.galenabiopharma.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding the intended use of the net proceeds from the offering and statements about the progress of the commercialization of Abstral® and Zuplenz® and development of the company's product candidates. These forward-looking statements also are subject to risks, uncertainties and assumptions relating to the commercialization and development of the company's products and product candidates, including those detailed from time to time in the company's filings with the SEC, and represent the company's views only as of the date they are made and should not be relied upon as representing the company's views as of any subsequent date. The company's actual results may differ materially from those contemplated by these forward-looking statements. The company 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.

Abstral and NeuVax are trademarks of Galena Biopharma, Inc. All other trademarks are the property of their respective owners.

CONTACT: Remy Bernarda SVP, Investor Relations & Corporate Communications (503) 405-8258 rbernarda@galenabiopharma.com

Source:Galena Biopharma