Galena Biopharma Presents Final Landmark 60-Month Results From NeuVax(TM) Phase 1/2 Trials at the 35th Annual CTRC-AACR San

Galena Biopharma Presents Final Landmark 60-Month Results From NeuVax(TM)
Phase 1/2 Trials at the 35th Annual CTRC-AACR San Antonio Breast Cancer
Symposium

  * The combined SN-33 (Node Positive) and SN-34 (Node Negative)
    Intent-to-treat (ITT) population continued to demonstrate an excellent
    safety and efficacy profile.
  * Phase 2 HER2 IHC 1+/2+ patients from SN-33 established the Phase 3 patient
    population. After establishing statistical significance at the 36-month
    Landmark Analysis, or the same endpoint as the ongoing Phase 3, the
    60-month Landmark Analysis demonstrated a 5.6% recurrence rate with NeuVax
    vs. a 25.9% recurrence rate in the control arm—a recurrence reduction of
    78.4%.
  * Phase 3 PRESENT study is underway with an FDA-approved Special Protocol
    Assessment (SPA). To date, 70 sites are approved globally, with continued
    expansion to over 100 sites planned.

LAKE OSWEGO, Ore., Dec. 7, 2012 (GLOBE NEWSWIRE) -- Galena Biopharma
(Nasdaq:GALE), a biotechnology company focused on developing innovative,
targeted oncology treatments addressing major unmet medical needs to advance
cancer care, presented data from the completed SN-33 Trial and final results
from the Phase 1/2 trials of NeuVax™ (nelipepimut-S or E75) at the 35^th
Annual CTRC-AACR San Antonio Breast Cancer Symposium. The event is being held
December 4-8, 2012 at the Henry B. Gonzalez Convention Center in San Antonio,
Texas.

"New treatment options are needed to address unmet medical needs for breast
cancer patients with HER2 low-to-intermediate expression or IHC 1+/2+
disease," stated COL George E. Peoples, MD, FACS and primary investigator for
the studies. "I'm very pleased with the overall conduct of the Phase 1/2
adjuvant trials which have demonstrated the safety and efficacy of NeuVax to
prevent recurrence, and want to thank the physicians and patients who
participated in the studies. I'm excited to see the progress in the ongoing
Phase 3 PRESENT trial."

THE COMBINED PHASE 1/2 NEUVAX CLINICAL TRIALS, SN-33 (NODE POSITIVE, NP) AND
SN-34 (NODE NEGATIVE, NN), CONTINUE TO DEMONSTRATE AN EXCELLENT SAFETY AND
EFFICACY PROFILE AT 60 MONTHS

Multiple clinical trials have shown NeuVax to be safe and effective at raising
HER2 immunity. Trials SN-33 (NP) (n=97) and SN-34 (NN) (n=90) enrolled
clinically eligible patients who were rendered disease-free after completion
of standard of care multi-modality therapy (n=187). Treatment assignment was
then based on HLA type, with HLA-A2/A3 patients vaccinated and HLA-A2/A3
negative patients followed prospectively as controls for recurrence. NeuVax
exhibited an excellent safety and tolerability profile, and demonstrated a
durable response out to 60 months:

  o Maximum toxicity for all inoculations produced primarily Grade 1 and some
    Grade 2 toxicities, with injection site reactions and fatigue most
    common. No serious adverse events (SAEs) or cardiotoxicity were reported.
  o 24-month Landmark Analysis: 94.3% of NeuVax patients were disease-free
    versus 86.8% of patients on the control arm (p=0.08).
  o 60-month Landmark Analysis: 89.7% of NeuVax patients remain disease-free
    versus 80.3% of patients on the control arm (p=0.077)—a recurrence
    reduction of 47.7% among all patients at any dose. Multiple dose response
    analyses underscore the efficacy of the vaccine with statistical
    significance being achieved among the optimally-dosed and boosted
    patients.

PHASE 2 BOOSTED PATIENTS FROM SN-33 (NP) ESTABLISHED PHASE 3 PATIENT
POPULATION

The target patient population for Galena's Phase 3 PRESENT (Prevention of
Recurrence in Early-Stage, Node-Positive Breast Cancer with
Low-to-Intermediate HER2 Expression with NeuVax™ Treatment) trial is based on
the SN-33 trial. SN-33 was conducted in node positive patients, and was well
balanced between the two arms: Vaccine HLA-A2/A3 positive (n=53) vs. Control
HLA-A2/A3 negative (n=44). During the conduct of this trial,
Herceptin® (trastuzumab; Genentech/Roche) became commercially available for
HER2 IHC Positive (3+) patients, after which the trial was amended to allow
these patients to receive Herceptin; however, this patient group was excluded
from efficacy analysis.

The 60-month Landmark Analysis of the SN-33 trial shows that breast cancer
recurrence was greatly reduced for patients treated with NeuVax and that these
results are both clinically relevant and durable over time. SN-33
Intent-to-treat (ITT) population (n=97); NeuVax (n=53) vs. Control (n=44):

  o 24-month Landmark Analysis: 90.6% of NeuVax patients were disease-free
    versus 79.5% of patients on the control arm.
  o 60-month Analysis: 84.7% of NeuVax patients remain disease-free versus
    77.1% of patients on the control arm.

SN-33 HER2 Negative (IHC 1+/2+) patients who received boosters (n=45)
established the Phase 3 PRESENT study that is underway with a FDA-approved
Special Protocol Assessment (SPA). NeuVax (n=18) vs. Control (n=27):

  o 24-month Landmark Analysis: 0% recurrences for patients treated with
    NeuVax: statistically significant DFS for NeuVax at 100% vs. 77.8% Control
    (p=0.0358).
  o 36-month Landmark Analysis: 0% recurrences for patients treated with
    NeuVax for a statistically significant DFS for NeuVax at 100% vs. 77.8%
    Control (p=0.035). Of note, no patients receiving booster inoculations had
    a recurrence through 36 months, which is the Phase 3 PRESENT study
    endpoint.
  o 60-month Landmark Analysis: 5.6% recurrence rate with NeuVax versus 25.9%
    recurrence rate in the control arm. DFS for NeuVax at 94.4% vs. 74.1%
    Control—a recurrence reduction of 78.4% in the target patient population.

"At 60 months, the gold standard in cancer trials, NeuVax has maintained
durable, improved disease-free survival," said Mark J. Ahn, Ph.D., President
and Chief Executive Officer. "Importantly, 94.4% of the Phase 3 target patient
population of HER2 low-to-intermediate IHC 1+/2+ patients remained
disease-free. Based on these results, we continue to believe NeuVax may be a
potential treatment option to prevent breast cancer recurrence for those women
who currently have no HER2-directed treatment options."

About NeuVax™ (nelipepimut-S or E75)

NeuVax™ (nelipepimut-S) is the immmunodominant nonapeptide derived from the
extracellular domain of the HER2 protein, a well-established target for
therapeutic intervention in breast carcinoma. The nelipepimut sequence
stimulates specific CD8+ cytotoxic T lymphocytes (CTL) following binding to
HLA-A2/A3 molecules on antigen presenting cells (APC). These activated
specific CTLs recognize, neutralize and destroy through cell lysis HER2
expressing cancer cells, including occult cancer cells and micrometastatic
foci. The nelipepimut immune response can also generate CTLs to other
immunogenic peptides through inter- and intra-antigenic epitope
spreading. Based on a successful Phase 2 trial, which achieved its primary
endpoint of disease-free survival (DFS), the Food and Drug Administration
(FDA) granted NeuVax a Special Protocol Assessment (SPA) for its Phase 3
PRESENT (Prevention of Recurrence in Early-Stage, Node-Positive Breast Cancer
with Low to Intermediate HER2 Expression with NeuVax Treatment) study. The
Phase 3 trial is ongoing and additional information on the study can be found
at the recently updated website www.neuvax.com.

According to the National Cancer Institute, over 230,000 women in the U.S. are
diagnosed with breast cancer annually. Of these women, only about 25% are HER2
positive (IHC 3+). NeuVax targets approximately 50-60% of HER2-negative
patients (IHC 1+/2+ or FISH <2.2) who achieve remission with current standard
of care, but have no available HER2-targeted adjuvant treatment options to
maintain their disease-free status.

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 clinical benefits,
expectations, plans and prospects of the development of NeuVax and Galena's
other new product candidates. These forward-looking statements are subject to
a number of risks, uncertainties and assumptions, including the risks that the
anticipated benefits of the announced transactions are not achieved and that
the proposed spin-off is delayed or is never completed, as well as the risks,
uncertainties and assumptions relating to the development of Galena's new
product candidates, including those identified under "Risk Factors" in
Galena's most recently filed Annual Report on Form 10-K and Quarterly Report
on Form 10-Q and in other filings Galena periodically makes 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 presentation.

CONTACT: Madeline Hatton
         Toll free: +1 (855) 855-GALE (4253), ext. 109
         info@galenabiopharma.com
        
         or
        
         Remy Bernarda
         IR Sense, LLC
         +1 (503) 400-6995
         remy@irsense.com

Galena Biopharma, Inc.