Skip to main content
Premium Trial:

Request an Annual Quote

Galena Makes Payment to Investors to Settle Securities Litigation

Premium

Galena Biopharma this week said that it has taken steps to end a dispute with investors that threatened to block the company's planned spinout of RNAi subsidiary RXi Pharmaceuticals.

As reported by Gene Silencing News, Galena was sued by a handful of investment firms alleging that protections within securities-purchase agreements they struck with the company require the biopharmaceutical company to buy back millions in devalued warrants.

The lawsuits sought a combined $5.2 million from Galena.

In an SEC-mandated quiet period over its planned spinout of RXi, Galena made no public comment on the suits, but continued to move forward with the transaction (GSN 3/1/2012).

In a regulatory filing this week, Galena said that it gave the investment groups a total of $355,000 “as payment in full of the repurchase price” for the warrants at issue.

Galena said in the filing that it believes the payment has made “the majority of the claims … moot.”

None of the investment firms have yet withdrawn their legal complaints. Still, Galena indicated this week that the spinout effort continues.

The Scan

Genes Linked to White-Tailed Jackrabbits' Winter Coat Color Change

Climate change, the researchers noted in Science, may lead to camouflage mismatch and increase predation of white-tailed jackrabbits.

Adenine Base Editor Targets SCID Mutation in New Study

Researchers from the University of California, Los Angeles, report in Cell that adenine base editing was able to produce functional T lymphocytes in a model of severe combined immune deficiency.

Researchers Find Gene Affecting Alkaline Sensitivity in Plants

Researchers from the Chinese Academy of Science have found a locus affecting alkaline-salinity sensitivity, which could aid in efforts to improve crop productivity, as they report in Science.

International Team Proposes Checklist for Returning Genomic Research Results

Researchers in the European Journal of Human Genetics present a checklist to guide the return of genomic research results to study participants.