Peregrine cuts 2Q loss nearly in half on revenue

AP News
Posted: Dec 10, 2009 4:23 PM

Peregrine Pharmaceuticals Inc. said Thursday it cut its 2010 fiscal second-quarter loss nearly in half as revenue from manufacturing services and government payments for the antivirus drug candidate bavituximab increased sharply.

The company lost $2.8 million, or 6 cents per share, compared with $4.5 million, or 10 cents per share, a year ago. Revenue surged to $6.9 million from $1.9 million.

The company said manufacturing revenue from third-party customers surged to $5.3 million from $983,000. Meanwhile, revenue from government contracts jumped 58 percent to $1.5 million.

The Defense Threat Reduction Agency awarded Peregrine a contract in 2008 to develop and test bavituximab and another antibody as a treatment for viral hemorrhagic fever. The deal has a two-year base period and could last for up to five years.

Peregrine is also testing bavituximab against cancer. The drug is designed to stick to a a piece of a cell structure that is normally only found inside cells, but is exposed on the surface if the cells are infected with certain viruses or become cancerous.

Shares of Peregrine fell 10 cents, or 3.6 percent, to close at $2.68.