SOURCE: Peregrine Pharmaceuticals
September 09, 2010 16:00 ET
Peregrine Pharmaceuticals Reports First Quarter Fiscal Year 2011 Clinical Progress and Financial Results
Advancing Phase II Oncology Programs for Bavituximab and Cotara®
TUSTIN, CA--(Marketwire - September 9, 2010) - Peregrine Pharmaceuticals, Inc. (NASDAQ: PPHM),
a clinical-stage biopharmaceutical company developing first-in-class
monoclonal antibodies for the treatment of cancer and viral infections,
today announced its clinical progress and financial results for the first
quarter ended July 31, 2010 for its fiscal year (FY) 2011 and provided an
update on the progress with its development programs.
"Our broad-spectrum Phase II bavituximab oncology program and our Phase II
Cotara® brain cancer program represent key future value drivers for
Peregrine," said Steven W. King, president and chief executive officer of
Peregrine. "Advancing these clinical programs remains our top priority and
during this past quarter we achieved multiple milestones, with positive
Phase II data in lung, advanced breast, and brain cancers. Driven by these
data, we recently launched two randomized Phase IIb non-small cell lung
cancer (NSCLC) trials for bavituximab and made significant strides toward
completing our Phase II glioblastoma multiforme trial for Cotara. Each of
these three clinical programs is a potential value inflection point for
Peregrine and represents an independent regulatory path toward potential
product approval. Our integrated biomanufacturing subsidiary Avid
Bioservices, which is expected to generate between $8 and $12 million in
third-party contract manufacturing revenue during fiscal year 2011, reduces
our operational expenses while it prepares for potential future clinical
development and commercial launch should our clinical programs be
successful."
Oncology Program Highlights
Bavituximab Phase IIb Cancer Trials
Based on promising clinical data presented this year at the American
Society of Clinical Oncology (ASCO) 2010 Annual Meeting in June, Peregrine
launched a randomized, placebo-controlled, double-blinded Phase IIb trial
in refractory NSCLC and expects to unblind top-line data by the end of
2011. In addition, Peregrine has initiated a randomized open-label Phase
IIb trial in front-line NSCLC. The second study is an open label study and
Peregrine expects to periodically report objective response rate data as
patients are enrolled and interim data analysis is completed. Enrollment in
both trials is expected to be complete by mid-year 2011.
At the ASCO 2010 Annual Meeting, Peregrine presented encouraging overall
response rate (ORR) and median progression-free survival (PFS) data from
three Phase II trials and expects to report final data once available.
-- Phase II front-line NSCLC trial showed ORR of 43% of patients (n=49)
and median PFS of 6.1 months for patients treated with bavituximab in
combination with carboplatin and paclitaxel. These results exceed the
15% ORR and 4.5 month median PFS of carboplatin and paclitaxel alone
from a separate historical trial.
-- Phase II front-line advanced breast cancer trial showed ORR of 74% of
patients (n=46) and median PFS of 6.9 months for patients treated with
bavituximab in combination with carboplatin and paclitaxel. These
results exceed the 62% ORR and 4.8 month median PFS of carboplatin and
paclitaxel alone from a separate historical trial.
-- Phase II refractory advanced breast cancer trial showed ORR of 61% of
patients (n=46) and median PFS of 7.4 months for patients treated with
bavituximab in combination with docetaxel. This exceeds the 41% ORR
of docetaxel alone from a separate historical trial.
Cotara® Phase II Brain Cancer Trial
By year-end, Peregrine expects to complete enrollment in its Phase II
safety and efficacy trial of Cotara in up to 40 patients with recurrent
glioblastoma multiforme (GBM). Previously reported interim data from two
separate Phase II studies showed median survival ranging from 38 to 41
weeks, compared to 24 weeks for historical control, in this deadliest form
of brain cancer.
Antiviral Program Highlights
Bavituximab Phase Ib HCV Infection Trial
Peregrine expects to complete enrollment by year-end in its Phase Ib safety
and efficacy trial of bavituximab monotherapy in up to 24 patients
coinfected with hepatitis C virus (HCV) and HIV. As clinical data to date
have been encouraging and preclinical data support advancing bavituximab's
development for HCV, the company is considering potential next steps for
clinical development.
Government-Sponsored Research
Peregrine's contract (HDTRA1-08-C-0003) with the Transformational Medical
Technologies (TMT) program of the U.S. Department of Defense's Defense
Threat Reduction Agency (DTRA) has provided for up to $22.3 million in
funding during the two-year base period ending June 29, 2010 and
potentially provides for a total of up to $44.4 million over a five-year
period. The two-year based period has been extended by several weeks while
Peregrine works closely with the government to determine the scope and
timing of the further evaluation of its phosphatidylserine (PS)-targeting
antibodies in advanced models of viral hemorrhagic fever (VHF) infections.
Intellectual Property
Peregrine strengthened its proprietary position in targeting PS when two
U.S. patents were issued, providing protection for vascular imaging and
antiviral applications of a broad range of phospholipid-targeting
antibodies. These two new patents cover vascular imaging using PS and
phosphatidylethanolamine (PE)-targeting antibodies and certain other
proteins and composition and viral treatment methods of a broad range of
antibodies, including bavituximab and fully human counterparts to
bavituximab.
Financial Results
Total revenues for the first quarter of FY 2011 were $3,209,000, compared
to $6,750,000 for the same quarter of the prior fiscal year. This decrease
was primarily attributed to a reduction in government contract revenue due
to the timing and scope of research activities performed under Peregrine's
government contract. In addition, contract manufacturing revenue from
Peregrine's subsidiary Avid Bioservices decreased due to a reduction in the
level and timing of services provided to third-party customers compared to
the same period of the prior year. Avid will continue to utilize available
capacity and resources to begin preparing for the future clinical
development and potential commercialization of bavituximab, while also
seeking to grow its base of third-party clients.
Total costs and expenses in the first quarter of FY 2011 were $10,721,000,
compared to $8,940,000 in the first quarter of FY 2010. The increase was
attributable to higher research and development and selling, general
administrative expenses, primarily to support Peregrine's two Phase IIb
bavituximab NSCLC trials. For the first quarter FY 2011, research and
development expenses were $7,067,000, compared to $6,074,000 for the first
quarter of FY 2010.
Peregrine's consolidated net loss was $7,695,000, or $0.14 per share, for
the first quarter of FY 2011, compared to a net loss of $2,428,000 or $0.05
per share, for the same quarter of the prior year.
Peregrine reported $17,983,000 in cash and cash equivalents at July 31,
2010, compared to $19,681,000 at April 30, 2010, and $12,778,000 at July
31, 2009.
More detailed financial information and analysis may be found in
Peregrine's Quarterly Report on Form 10-Q, which was filed with the
Securities and Exchange Commission today.
Conference Call
Peregrine will host a conference call and webcast today, September 9, 2010,
at 4:30 p.m. EDT (1:30 p.m. PDT).
-- To listen to the live webcast or access the archived webcast available
for 30 days, please visit: www.peregrineinc.com.
-- To listen to the conference call, please call (877) 312-5443 or (253)
237-1126 and request the Peregrine Pharmaceuticals call. A replay of
the call will be available starting approximately one hour after the
conclusion of the call through September 16, 2010 by calling (800)
642-1687 or (706) 645-9291 and using passcode 96261019.
About Peregrine Pharmaceuticals
Peregrine Pharmaceuticals, Inc. is a biopharmaceutical company with a
portfolio of innovative monoclonal antibodies in clinical trials for the
treatment of cancer and serious viral infections. The company is pursuing
multiple clinical programs in cancer and hepatitis C virus infection with
its lead product candidate bavituximab and novel brain cancer agent
Cotara®. Peregrine also has in-house cGMP manufacturing capabilities
through its wholly-owned subsidiary Avid Bioservices, Inc.
(www.avidbio.com), which provides development and biomanufacturing services
for both Peregrine and outside customers. Additional information about
Peregrine can be found at www.peregrineinc.com.
Safe Harbor Statement: Statements in this press release which are not
purely historical, including statements regarding Peregrine
Pharmaceuticals' intentions, hopes, beliefs, expectations, representations,
projections, plans or predictions of the future are forward-looking
statements within the meaning of the Private Securities Litigation Reform
Act of 1995. The forward-looking statements involve risks and uncertainties
including, but not limited to, the risk the company may experience delays
in clinical trial patient enrollment, the risk that the results of the
Phase IIb clinical trials may not correlate with the results from prior
clinical and preclinical studies, the risk that the company may not have or
be able to raise sufficient financial resources to complete the Phase IIb
trials, the risk that Avid's revenue growth may slow or decline, the risk
that Avid may experience technical difficulties in processing customer
orders which could delay delivery of products to customers and receipt of
payment, the risk that one or more existing Avid customers terminates its
contract prior to completion, and the risk that the government contract
with the TMT may not be further extended or provide any additional funding.
It is important to note that the Company's actual results could differ
materially from those in any such forward-looking statements. Factors that
could cause actual results to differ materially include, but are not
limited to, uncertainties associated with completing preclinical and
clinical trials for our technologies; the early stage of product
development; the significant costs to develop our products as all of our
products are currently in development, preclinical studies or clinical
trials; obtaining additional financing to support our operations and the
development of our products; obtaining regulatory approval for our
technologies; anticipated timing of regulatory filings and the potential
success in gaining regulatory approval and complying with governmental
regulations applicable to our business. Our business could be affected by a
number of other factors, including the risk factors listed from time to
time in the company's SEC reports including, but not limited to, the annual
report on Form 10-K for the fiscal year ended April 30, 2010 and quarterly
report on Form 10-Q for the quarter ended July 31, 2010. The company
cautions investors not to place undue reliance on the forward-looking
statements contained in this press release. Peregrine Pharmaceuticals, Inc.
disclaims any obligation, and does not undertake to update or revise any
forward-looking statements in this press release.
PEREGRINE PHARMACEUTICALS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
THREE MONTHS ENDED
--------------------------
July 31, July 31,
2010 2009
------------ ------------
Unaudited Unaudited
REVENUES:
Contract manufacturing revenue $ 983,000 $ 2,070,000
Government contract revenue 2,111,000 4,671,000
License revenue 115,000 9,000
------------ ------------
Total revenues 3,209,000 6,750,000
COSTS AND EXPENSES:
Cost of contract manufacturing 1,156,000 1,073,000
Research and development 7,067,000 6,074,000
Selling, general and administrative 2,498,000 1,793,000
------------ ------------
Total costs and expenses 10,721,000 8,940,000
------------ ------------
LOSS FROM OPERATIONS (7,512,000) (2,190,000)
------------ ------------
OTHER INCOME (EXPENSE):
Interest and other income 18,000 40,000
Interest and other expense (201,000) (278,000)
------------ ------------
NET LOSS $ (7,695,000) $ (2,428,000)
============ ============
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING 54,357,574 46,808,791
============ ============
BASIC AND DILUTED LOSS PER COMMON SHARE $ (0.14) $ (0.05)
============ ============
PEREGRINE PHARMACEUTICALS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
JULY 31, APRIL 30,
2010 2010
------------ ------------
Unaudited
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 17,983,000 $ 19,681,000
Trade and other receivables, net 1,292,000 1,481,000
Government contract receivables 590,000 367,000
Inventories, net 4,692,000 3,123,000
Debt issuance costs, current portion 94,000 122,000
Prepaid expenses and other current assets, net 1,703,000 2,004,000
------------ ------------
Total current assets 26,354,000 26,778,000
PROPERTY:
Leasehold improvements 713,000 697,000
Laboratory equipment 4,278,000 4,221,000
Furniture, fixtures, office equipment and
software 1,364,000 917,000
------------ ------------
6,355,000 5,835,000
Less accumulated depreciation and amortization (4,504,000) (4,366,000)
------------ ------------
Property, net 1,851,000 1,469,000
OTHER ASSETS:
Debt issuance costs, less current portion 8,000 21,000
Other assets 1,088,000 1,067,000
------------ ------------
Total other assets 1,096,000 1,088,000
TOTAL ASSETS $ 29,301,000 $ 29,335,000
============ ============
PEREGRINE PHARMACEUTICALS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS (continued)
JULY 31, APRIL 30,
2010 2010
------------- -------------
Unaudited
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ 2,681,000 $ 2,259,000
Accrued clinical trial site fees 1,762,000 2,666,000
Accrued payroll and related costs 1,773,000 1,623,000
Notes payable, current portion and net of
discount 1,946,000 1,893,000
Deferred revenue 3,719,000 2,406,000
Deferred government contract revenue 47,000 78,000
Customer deposits 2,191,000 2,618,000
Other current liabilities 1,039,000 860,000
------------- -------------
Total current liabilities 15,158,000 14,403,000
Notes payable, less current portion and net
of discount 712,000 1,315,000
Deferred revenue 125,000 -
Other long-term liabilities 469,000 210,000
Commitments and contingencies
STOCKHOLDERS' EQUITY:
Preferred stock-$0.001 par value; authorized
5,000,000 shares; non-voting; nil shares
outstanding - -
Common stock-$0.001 par value; authorized
325,000,000 shares; outstanding -
55,784,955 and 53,094,896, respectively 56,000 53,000
Additional paid-in capital 282,330,000 275,208,000
Accumulated deficit (269,549,000) (261,854,000)
------------- -------------
Total stockholders' equity 12,837,000 13,407,000
------------- -------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 29,301,000 $ 29,335,000
============= =============