AVEO Pharmaceuticals, Inc. (AVEO), InterMune Inc (ITMN), and Galena Biopharma Inc (GALE): 2 Biotechs To Avoid, 1 To Buy

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Galena Biopharma Inc (NASDAQ:GALE) is currently operating in a healthcare sector, which is facing some serious candidate shortage. This has increased the demand for small biopharmaceutical companies with promising drug candidates. In the last six months, the interest of institutional investors has significantly increased in Galena Biopharma Inc (NASDAQ:GALE) due to its acquisition prospects and cheap valuations.

Institutions have increased their holdings in Galena Biopharma Inc (NASDAQ:GALE) by 18% and have added almost 1.5 million shares. The sell-side also has a pretty favorable view of the company and is currently giving a unanimous “buy” rating for the stock. The mean target price is currently $4.90, which is an approximately 100% upside to current price levels.

Conclusion

Investors should avoid AVEO Pharmaceuticals, Inc. (NASDAQ:AVEO) and InterMune Inc (NASDAQ:ITMN) for the time being because these companies are witnessing some heaving dumping by institutions, which will continue to beat down the price. Galena remains a top pick in the biotechnology industry due to its cheap valuations and high probability of an acquisition by major players like TEVA and AstraZeneca.

The article 2 Biotechs To Avoid, 1 To Buy originally appeared on Fool.com and is written by Mohsin Saeed.

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