Galena Biopharma Inc (NASDAQ:GALE) has not been named, as the target of a criminal investigation, being conducted by the federal authorities. As per the details of the report, two doctors in Alabama have been arrested, for prescribing painkillers, for kickbacks from a pharmaceutical company.

The news, about GALE being the target of the investigation, first surfaced when the company identified Abstral, as the drug being prescribed by the two doctors. The disclosure on the matter was made in the company’s 10-K recently filed with the SEC. However, Galena Biopharma soon clarified that the word “not” had been omitted erroneously, leading the public to perceive GALE as the targeted company. It should be kept in mind that the FDA and US Attorney’s Office is investigating the marketing techniques used by GALE, for Abstral.

Galena had divested its painkiller business, in November, after marketing the tablet since 2013. The company had also disclosed that the two arrested doctors were the highest subscribers of the pill. A total of 19 criminal counts have been placed on the two doctors, who have denied all charges. The trial is set to begin, during the later part of this year. Moreover, the doctors have also been the highest prescribers of Subsys, from Insys Therapeutics.

GALE had recently held its 4Q2015 earnings call and updated its investors about the happenings of the company. Galena Biopharma identified that it had completed two important milestones, concerning the phase-3 clinical trial of HER2 for the prevention of recursive breast cancer. The company identified that it was conducting the trial at over 140-sites, around the world and had enrolled a total of 758 patients. Similarly, the company’s drug for gynecological cancer had also provided promising data, from its phase-2a trial. Finally, GALE also reported progress with GALE-401, a drug for the reduction of platelets in patients of neoplasms.

Galena Biopharma Inc (NASDAQ:GALE) had a trade volume of 3.95 million, during the March 11 session and lost 2.78% of its share value, to reach a close at $0.862.