Activity In Peregrine May Indicate A Raise Is Coming

Peregrine Pharmaceuticals (NASDAQ:PPHM) broke out of its 52-week range Monday on chatter over a possible drug company partnership for lead cancer compound, bavituximab. Shares were up 25% to $2.86 at Monday’s close, a $0.40 increase from the previous $2.46 high. Bavituximab completed Phase II trials for second-line use against Non Small Cell Lung Cancer (NSCLC) and the compound is also undergoing earlier trials for a variety of other oncology indications. Cotara, the company’s other oncology drug, is in Phase II trials for treatment of glioblastoma multiforme, and notably, shares of PPHM have taken investors on a volatile ride over the years when clinical results have been reported. In May, the company reported a 1.5 month increase in Progression-Free Survival over placebo with Bavituximab (for NSCLC) and the company plans to release more data in the second half of this year. Despite these data, investors did not rally PPHM, even though in June, the largest cancer meeting of the year, ASCO, was held after the positive data was released. It is curious that no smart money has become involved in the stock and that there is limited investment bank sponsorship despite the “positive” news. In fact, through the early part of the summer, PPHM was so out of favor that the NASDAQ warned the company of being delisted. (more…)