VIDEO RELEASE -- Galena Biopharma Reports First Quarter 2013 Financial Results

VIDEO RELEASE -- Galena Biopharma Reports First Quarter 2013 Financial Results

  *Lead product, NeuVax™ (nelipepimut-S), reached global site enrollment
    milestone for Phase 3 PRESENT trial; and commenced enrolling a Phase 2b in
    combination with Herceptin®.
  *Completed Abstral® product acquisition in the U.S., with launch targeted
    in the 4th Quarter of 2013.
  *Operating loss from continuing operations for the quarter ended March 31,
    2013 of $6.6 million.
  *Cash & marketable securities of $27.2 million, with a subsequent debt
    financing of $10 million—and outstanding tranche of another $5 million.

LAKE OSWEGO, Ore., May 9, 2013 (GLOBE NEWSWIRE) -- Galena Biopharma
(Nasdaq:GALE), a biopharmaceutical company developing innovative, targeted
oncology treatments that address major unmet medical needs to advance cancer
care, today reported its financial results for the quarter ended March 31,
2013 and provided a business update.


A video accompanying this release is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=18614

"We envision a day when breast cancer survivors can live free from fear of
disease recurrence, and are focused on advancing NeuVax in both our Phase 3
PRESENT study and Phase 2b combination trial," said Mark J. Ahn, Ph.D.,
President and Chief Executive Officer. "Also, with the acquisition of
FDA-approved Abstral, I am more excited than ever about our prospects as we
further accelerate into a commercial company. Over the past two months, the
Abstral team has made significant progress by transferring the New Drug
Application two months ahead of schedule and reaching several regulatory,
manufacturing, and clinical milestones, as we drive towards commercial launch
in the fourth quarter of this year."

1Q, 2013 Highlights

  *Lead product, NeuVax (nelipepimut-S), is enrolling patients in two key
    trials.

    *NeuVax is the first adjuvant breast cancer vaccine to enter pivotal
      Phase 3 clinical trials.Galena is currently enrolling its randomized,
      multi-national Phase 3 trial entitled PRESENT (Prevention of Recurrence
      in Early-Stage, Node-Positive Breast Cancer with Low to Intermediate
      HER2 Expression with NeuVax™ Treatment).The study is being conducted
      under a Special Protocol Assessment (SPA) granted by the U.S. Food and
      Drug Administration (FDA), and is currently enrolling in over 125
      clinical sites worldwide.
      
    *A randomized, multicenter investigator-sponsored, 300 patient Phase 2b
      clinical trial began enrolling patients to study NeuVax in combination
      with Herceptin® (trastuzumab; Genentech/Roche).

  *Received the 2013 Global Frost & Sullivan Award for New Product Innovation
    for NeuVax. In March 2013, independent research firm, Frost & Sullivan,
    recognized Galena Biopharma with the 2013 Global Frost & Sullivan Award
    for New Product Innovation. Each year, Frost & Sullivan presents this
    award to the company that has developed an innovative element in a product
    by leveraging leading-edge technologies. The award recognizes the
    value-added features/benefits of the product and the increased ROI it
    offers customers, which, in turn, increases customer acquisition and
    overall market penetration potential.
    
  *NeuVax mechanism of action video now available at
    http://www.neuvax.com/how-neuvax-works/.The video can also be viewed on
    the www.galenabiopharma.com website.
    
  *Acquired Abstral® (fentanyl) Sublingual Tablets in U.S., a Novel,
    Best-in-Class Treatment Approved for Breakthrough Cancer Pain.In March
    2013, Galena acquired Abstral from Orexo AB (ORX.ST), an emerging
    specialty pharmaceutical company based in Sweden.Abstral was approved by
    the FDA in 2011, and is an important new treatment option for inadequately
    controlled breakthrough cancer pain (BTcP) in patients who are already
    receiving, and who are tolerant to, opioid therapy for their persistent
    baseline cancer pain.BTcP has been shown to affect as many as 40%-80% of
    cancer patients, with reported episodes of four per day and a median
    duration of 30 minutes. The innovative Abstral formulation delivers the
    analgesic power of micronized fentanyl in a sublingual tablet, which
    dissolves under the tongue within seconds. Abstral provides rapid relief
    of BTcP, predictable dosing, and is convenient and easy to use.It is the
    transmucosal immediate-release fentanyl (TIRF) market leader in Europe,
    and Galena expects to launch the drug into the $400 million U.S. market
    for TIRFs in in the fourth quarter of 2013.
    
  *Strengthened the management team and expanded the Board of Directors with
    experts in oncology commercialization.

    *Christopher S. Lento joined Galena as its Vice President of Sales and
      Commercial Operations to launch Abstral.Mr. Lento has 20 years of
      experience in senior level positions managing the sales, business
      development and operations at major healthcare companies including
      Genentech BioOncology, Altos Solutions, Abraxis Bioscience (acquired by
      Celgene Corporation), and US Oncology Network.
      
    *William L. Ashton joined the Company's Board of Directors in May
      2013.Mr. Ashton is a senior executive with more than twenty-eight years
      of experience in biotechnology and pharmaceutical leadership and
      management.Most recently, at Amgen, Inc., he served as Vice President
      of corporate and government affairs and Vice President of sales, and was
      directly responsible for product launches, as well as interaction with
      key government agencies including the Centers for Medicare and Medicaid
      Services.After retiring from Amgen, Mr. Ashton joined the University
      of the Sciences in Philadelphia where he currently serves as Associate
      Provost and Senior Vice President of Strategic Business Development,
      Founding Dean, Mayes College of Healthcare Business and Policy, and
      Assistant Professor of Pharmaceutical Business.

First Quarter 2013 Financial Highlights

Operating loss for the quarter ended March 31, 2013 was $6.6 million,
including $0.4 million in stock-based compensation charges, compared with an
operating loss of $4.4 million for the quarter ended March 31, 2012, which
includes $0.7 million in stock-based compensation charges.

Galena Biopharma also incurs income or expense due to non-cash charges related
to changes in the fair value estimates of the Company's warrant liabilities
and contingent purchase price liability. These charges for the quarter ended
March 31, 2013 were $5.4 million versus $19.1 million for the quarter ended
March 31, 2012.

Net loss (including both continued operations and discontinued operations) for
the quarter ended March 31, 2013 was $9.3 million, or $0.11 per basic and
diluted share, versus a net loss of $24.8 million, or $0.52 per basic and
diluted share, for the quarter ended March 31, 2012.

As of March 31, 2013, Galena had cash, cash equivalents and marketable
securities of $27.2 million, compared with $35.6 million as of December 31,
2012. Our marketable securities consist of approximately 33.5 million shares
of common stock in RXi Pharmaceuticals (OTCBB:RXII), with a market value of
approximately $9.7 million and $2.7 million at March 31, 2013 and December 31,
2012, respectively. On May 8, Galena completed a debt financing of $15
million to fund the purchase and launch of Abstral, of which $10 million was
drawn immediately.

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 (CTLs) 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 PRESENT trial
is ongoing and additional information on the study can be found at
www.neuvax.com.A randomized, multicenter investigator sponsored, 300 patient
Phase 2b clinical trial is also enrolling patients to study NeuVax in
combination with Herceptin® (trastuzumab; Genentech/Roche).

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 the approximately 50%-60% of these women who
are HER2 negative (IHC 1+/2+ or FISH < 2.2) and achieve remission with current
standard of care, but have no available HER2-targeted adjuvant treatment
options to maintain their disease-free status.

About Abstral® (fentanyl) Sublingual Tablets

Abstral® (fentanyl) Sublingual Tablets are an important new treatment option
for inadequately controlled breakthrough cancer pain (BTcP) which impact
40%-80% of cancer patients. Abstral is approved by the FDA, and is a
sublingual (under the tongue) fentanyl tablet indicated only for the
management of breakthrough pain in patients with cancer, 18 years of age and
older, who are already receiving, and who are tolerant to, opioid therapy for
their persistent baseline cancer pain. The innovative Abstral formulation
delivers the analgesic power and increased bioavailability of micronized
fentanyl in a more convenient sublingual tablet which rapidly dissolves under
the tongue in seconds, provides rapid relief of breakthrough pain in minutes,
and matches the duration of the entire pain episode.

About Galena Biopharma

Galena Biopharma, Inc. (Nasdaq:GALE) is a Portland, Oregon-based
biopharmaceutical company developing innovative, targeted oncology treatments
that address major unmet medical needs to advance cancer care.For more
information please visit us at 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.Such statements include,
but are not limited to, statements about the progress of patient enrollment in
our clinical trials, as well as statements about expectations, plans and
prospects for the commercialization of Abstral and development of Galena's
product candidates.These forward-looking statements are subject to a number
of risks, uncertainties and assumptions, including those identified under
"Risk Factors" in Galena's Annual Report on Form 10-K for the year ended
December 31, 2012 and Quarterly Report on Form 10-Q for the three months ended
March 21, 2013 filed 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 press release.

Galena Biopharma
(A Development Stage Company)
CONDENSED CONSOLIDATED STATEMENTS OF EXPENSES (unaudited)
(Amounts in thousands, except share and per share data)
                                                          
                                        Three Months Ended Three Months Ended
                                         March 31, 2013     March 31, 2012
Expenses:                                                  
                                                          
Research and development                $5,081           $2,664
                                                          
General and administrative               1,530             1,746
                                                          
Operating loss                           (6,611)           (4,410)
                                                          
Other income (expense), net             (5,444)           (19,130)
                                                          
Pretax loss from continuing operations   (12,055)          (23,540)
                                                          
Income tax benefit                       (2,762)           --
                                                          
Net loss from continuing operations      (9,293)           (23,540)
                                                          
Discontinued operations                  --               (1,221)
                                                          
Net loss                                 $(9,293)         $(24,761)
                                                          
Earnings per common share - basic and                      
diluted
Continuing operations                    $(0.11)          $(0.49)
Discontinued operations                  $--              $(0.03)
Net loss                                 $(0.11)          $(0.52)
                                                          
Weighted average shares outstanding –   83,002,323         47,967,499
basic and diluted
                                                          
                                                          
Galena Biopharma
(A Development Stage Company)
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands)
                                                          
                                        March 31,2013     December 31, 2012
                                         (unaudited)
ASSETS                                                     
Current assets:                                            
Cash and cash equivalents                $17,481          $32,807
Restricted cash                          102                101
Marketable securities                    9,709             2,678
Prepaid expenses                         210                535
                                                          
Total current assets                     27,502             36,121
                                                          
Equipment and furnishings, net           27                 29
In-process research and development      12,864             12,864
Abstral rights                           15,086             --
Goodwill                                 5,898              5,898
Deposits                                 74                 74
                                                          
Total assets                             $61,451          $54,986
                                                          
LIABILITIES AND STOCKHOLDERS' EQUITY                       
Current liabilities:                                       
Accounts payable and accrued expenses    $9,601           $4,014
Current maturities of capital lease      6                  6
obligations
Fair value of warrants potentially       15,843             10,964
settleable in cash
Current contingent purchase price        929                935
consideration, current
                                                          
Total current liabilities                26,379             15,919
Capital lease obligations, net of        51                 51
current maturities
Deferred tax liability, non-current      5,053              5,053
Contingent purchase price consideration, 6,656              6,207
long term
                                                          
Total liabilities                        38,139             27,230
Stockholders' equity                     23,312             27,756
                                                          
Total liabilities and stockholders'      $61,451          $54,986
equity

CONTACT: Remy Bernarda
         Senior Director, Communications
         +1 (503) 400-6995
         rbernarda@galenabiopharma.com

Galena Biopharma, Inc.