Peregrine Pharmaceuticals Reports Narrower Q3 Loss (PPHM)

Peregrine Pharmaceuticals (NASDAQ: PPHM) reported late on Tuesday fiscal third quarter results which showed losses were less-than-expected as its revenue jumped more than twofold while lower research and development related costs bolstered the bottom line. The Company is now pinning hopes on its lung cancer treatment drug bavituximab whose development came to a halt after questions were raised regarding its efficacy.

Shares rallied in afterhours trading.

For the fiscal third quarter ended January 31, Peregrine reported a loss of $4.9 million, or 4 cents a share, compared to a loss of $11.1 million, or 13 cents a share, in the year-earlier quarter.

Revenue for the period came at $7 million up from $3.3 million in the same period of last year.

Analysts’ polled by FactSet Research were expecting a loss of 7 cents a share on revenue of $4.1 million.

The drug developer said that its research and development related expenses shrank by nearly 40%. Currently, the Company does have any approved products while its most advanced lung cancer treatment, bavituximab is likely to go through the final stage of clinical trial by the end of this year. The Company is now planning to meet with the Food and Drug Administration.

What went wrong with potential cancer treatment blockbuster, bavituximab?

Back in September, Peregrine claimed that patients who were treated with bavituximab were twice more likely to live longer than those patients who only received chemotherapy treatment, sending shares to three year high, at that moment.

Nonetheless, last month, the Company retracted its claims saying that patents would live only 60% longer if treated with bavituximab . Peregrine said that the fault lied with another company, which was contracted to code and distribute this drug.

Just last week analysts at Piper Jaffray initiated coverage on the stock, setting an “overweight” rating with a price target of $2.50.

The 52 week trading range is $0.39 -$5.50. The stock’s 50-day moving average at present is $1.76 and has beta of 90. The company’s market cap is $209.41 million as of Tuesday.