Galena Biopharma Announces Pricing of Public Offering of Common Stock and Warrants

Galena Biopharma Announces Pricing of Public Offering of Common Stock and

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 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 (800)747-3924, or by e-mail at

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

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

The Galena Biopharma, Inc. logo is available at

About NeuVax (Nelipepimut-S)

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, the Food and Drug Administration granted NeuVax™ a
Special Protocol Assessment 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

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 proposed public 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. These forward-looking statements also are subject to 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
         Remy Bernarda
         IR Sense, LLC
         +1 (503) 400-6995

Galena Biopharma, Inc.
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