Peregrine Pharmaceuticals, Inc.
) reported a net loss of 6 cents per share in the fourth quarter of
fiscal 2014 (ended Apr 30, 2014), narrower than the Zacks Consensus
Estimate of a loss of 8 cents. The fourth quarter loss was in line
with the year-ago loss.
Revenues increased 52.2% to $6.5 million, much above the Zacks
Consensus Estimate of $4 million.
Peregrine Pharma's net loss for fiscal 2014 of 22 cents per share
was in line with the Zacks Consensus Estimate but narrower than the
year-ago loss of 25 cents per share. Revenues for the fiscal year
increased 3.3% to $22.4 million, beating the Zacks Consensus
Estimate of $21 million.
Quarter in Detail
Avid Bioservices, a Peregrine Pharma subsidiary, posted contract
manufacturing revenues of $6.5 million during the quarter, up 55.0%
year over year. For fiscal 2014, Peregrine Pharma reported contract
manufacturing revenues of $22.3 million, above its guided range of
$18−$22 million. For fiscal 2015, the company expects contract
manufacturing revenues in the $19−$23 million range.
Peregrine Pharma's total costs and expenses increased 33.7% during
the fourth quarter of fiscal 2014 to $17 million, primarily due to
higher research and development (R&D) expenses. R&D
expenses increased 51% to $6.5 million. Selling, general and
administrative (SG&A) expenses were up 19.0% to $3.8 million.
Peregrine Pharma's lead pipeline candidate, bavituximab, is being
developed for multiple oncology indications including the treatment
of second-line non-small cell lung cancer (NSCLC). Bavituximab has
received Fast Track designation from the FDA for the NSCLC
The company is conducting a pivotal phase III study, SUNRISE
(Stimulating ImmUne RespoNse thRough BavItuximab in a PhaSE III
Lung Cancer Study), on bavituximab for second-line NSCLC. The study
will enroll approximately 600 patients by the end of 2015. The
randomized, double-blind, placebo-controlled, phase III trial will
compare bavituximab in combination with
) Taxotere (docetaxel) to Taxotere and placebo.
Apart from NSCLC, bavituximab is being developed for other oncology
indications including HER2-negative metastatic breast cancer (phase
I - final data expected in fiscal 2015), advanced hepatocellular
carcinoma (phase I/II), treatment naïve stage IV NSCLC (phase Ib -
additional data expected in fiscal 2015), advanced melanoma (phase
Ib) and stage II/III rectal adenocarcinoma (phase I).
We are pleased with the higher-than-expected revenues and
narrower-than-expected loss in the reported quarter. We expect
investor focus to remain on updates pertaining to bavituximab. The
successful development and commercialization of bavituximab would
be a major positive for Peregrine Pharma, which currently has no
Peregrine Pharma carries a Zacks Rank #3 (Hold). Some better-ranked
stocks in the health sector include
BioMarin Pharmaceutical Inc.
Biogen Idec Inc.
), each carrying a Zacks Rank #1 (Strong Buy).
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