Galena Biopharma Announces Public Offering of Common Stock and Warrants

Galena Biopharma Announces Public Offering of Common Stock and Warrants

LAKE OSWEGO, Ore., Dec. 17, 2012 (GLOBE NEWSWIRE) -- Galena Biopharma
(Nasdaq:GALE) announced today that it intends to offer shares of its common
stock and warrants to purchase shares of its common stock in an underwritten
public offering. The offering is subject to market and other conditions, and
there can be no assurance as to whether or when the offering may be completed,
or as to the actual size or terms of the offering.

Piper Jaffray & Co. is acting as the sole book-running manager for the
offering.

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 related to the offering will be filed with
the SEC and will be available on the SEC's websiste 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 Nicolett Mall, Suite 800,
Minneapolis, MN 55402, or by telephone at (800)747-3924, or by e-mail at
prospectus@pjc.com.

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.

About Galena Biopharma

Galena Biopharma, Inc. is a biopharmaceutical company that develops
innovative, targeted oncology treatments to address major unmet medical needs
to advance cancer care.For more information please visit
www.galenabiopharma.com.

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

About NeuVax (Nelipepimut-S)

NeuVax™ (nelipepimut-S) is the immunodominant 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 (P
revention 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
www.neuvax.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 proposedpublic offering and the intended use of proceeds from
the offering and statements about plans for the development of the company's
product candidates.The offering is subject to market and other conditions,
and there can be no assurance as to whether or when the offering may be
completed or as to the actual size or terms of the offering.These
forward-looking statements also are subjectto risks, uncertainties and
assumptions relating to the development of the company's 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.

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.
 
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