Galena Biopharma Inc. received a termination notice from BioVascular Inc. regarding an exclusive license agreement for blood cancer drug GALE-401.

GALE-401 is a controlled release version of anagrelide, which is used to reduce platelet counts in patients suffering from blood cancer.

According to the biopharmaceutical company's May 31 filing with the SEC, BioVascular had sent it a 30-day notice of termination on April 27 alleging that it had not used "commercially reasonable efforts" to start a phase 3 clinical trial of GALE-401 and was in "material breach" of the license agreement.

Galena said it believed it had used "commercially reasonable efforts" in respect to GALE-401. But if it was unable to maintain rights to the drug, the development of products associated with the rights would be delayed or terminated, which could have an adverse effect on its business.

The company added, however, it would not incur any early termination penalties.

In December 2013, Galena's wholly owned subsidiary, Mills Pharmaceuticals LLC, and BioVascular, entered an exclusive licensing agreement for GALE-401. The drug has completed a phase 2 clinical trial.