LAKE OSWEGO, Ore., April 26, 2012 (GLOBE NEWSWIRE) -- Galena Biopharma, Inc. (GALE - News), a biotechnology company focused on developing innovative, targeted oncology treatments, announced today that it has initiated the final steps to complete the previously announced spin-off of RXi Pharmaceuticals Corporation, Galena's wholly-owned subsidiary. To effectuate the spin-off, Galena is paying a dividend of one share of RXi Pharmaceuticals common stock for each outstanding share of Galena common stock. The dividend is being paid at the close of business on April 26, 2012 to Galena stockholders who owned shares of Galena common stock as of close of business on April 23, 2012, the record date for the dividend. Galena expects that its common stock will trade on an ex-dividend basis beginning on April 27, 2012.
RXi Pharmaceuticals will operate as an independent, publicly-traded company focused on discovering, developing and commercializing innovative therapies based on its proprietary, next-generation RNAi platform. RXi Pharmaceuticals common stock is expected to commence trading under the symbol "RXII" on the OTC Bulletin Board in the next one-to-two weeks.
"This transaction marks the final stage of our transformation from a pre-clinical platform into a late clinical stage, targeted cancer therapeutics company we started a year ago. Galena will continue focusing on our development-stage, targeted oncology pipeline, led by NeuVax(TM), which recently commenced a pivotal, Phase 3 clinical trial for low-to-intermediate HER2 breast cancer patients," said Mark J. Ahn, Ph.D., President and Chief Executive Officer of Galena. "Both companies now have greater flexibility to focus on and pursue their respective growth strategies, while potentially providing shareholders with greater value over the longer term. RXi will focus on developing novel RNAi-based drug candidates, with an initial focus on RXI-109, its lead product candidate designed to silence CTGF (connective tissue growth factor) for anti-scarring indications."
The intended spin-off transaction was previously announced in September 2011, and the dividend payment is being made pursuant to the registration statement that RXi Pharmaceuticals filed with the Securities and Exchange Commission, which was declared effective on February 14, 2012.
About Galena Biopharma
Galena Biopharma, Inc. (GALE - News) 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.
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About RXi Pharmaceuticals
RXi Pharmaceuticals is a biotechnology company focused on discovering, developing and commercializing innovative therapies based on its proprietary, next-generation RNAi platform. Therapeutics that use RNA interference, or "RNAi," have great promise because of their ability to "silence," or down-regulate, the expression of a specific gene that may be overexpressed in a disease condition. Building on the pioneering work of scientific founder and Nobel Laureate Dr. Craig Mello, RXi's first RNAi product candidate, RXI-109, which targets CTGF (connective tissue growth factor), is scheduled to commence human clinical trials in anti-scarring in 2012.
Galena Biopharma Contacts:Madeline HattonToll-free: +1 (855) 855-GALE (4253), ext. firstname.lastname@example.orgRemy BernardaIR Sense, LLC+1 (503) email@example.comRXi Pharmaceuticals Contact:Tamara McGrillenRXi Pharmaceuticals Corporation+1 (508) firstname.lastname@example.org