TUSTIN, Calif., Oct 27, 2008 /PRNewswire-FirstCall via COMTEX News Network/ -- Avid Bioservices, Inc. today announced it has signed a manufacturing supply agreement with Catalyst Biosciences, Inc. to produce clinical-grade material in support of their clinical candidate, CB 813, an improved version of factor VIIa for the treatment of acute bleeding in hemophilia patients.

Under the terms of the agreement, Avid Bioservices will begin manufacturing drug supply under current good manufacturing practice (cGMP) regulations and provide cell bank preparation, process development, and preparation of the manufacturing portion of the FDA Investigational New Drug Application. Further terms of the agreement were not disclosed.

"This agreement with Catalyst Biosciences for their lead clinical candidate is the most recent example of the traction we are gaining as a trusted provider of cGMP manufacturing services, as well as our broad capabilities as a provider of valuable ancillary services," said Steven W. King, president of Avid. "We are delighted to be working with the talented Catalyst Biosciences team and their promising engineered protease technology. We view this agreement as further recognition of Avid's proven ability to produce clinical and commercial grade drug product."

"Avid's expertise in the scale-up and manufacture of clinical-grade biotechnology therapeutics and their strong customer orientation made them a good choice for Catalyst," said Nassim Usman, Ph.D., CEO of Catalyst Biosciences.

Avid Bioservices is a wholly owned subsidiary of Peregrine Pharmaceuticals Inc. (Nasdaq: PPHM).

About Avid Bioservices

Avid Bioservices provides a comprehensive range of cGMP manufacturing services for the biotechnology and biopharmaceutical industries. Avid manufactures cGMP commercial product, as well as clinical supplies for all phases of clinical trials. The company's comprehensive range of cGMP services includes cell banking, stability testing, clinical product manufacturing and purification, bulk packaging, final product filling and regulatory support. Avid also provides a variety of process development activities, including cell line optimization, analytical method development and product characterization. Avid has over 10 years of antibody manufacturing experience producing monoclonal antibodies and recombinant proteins in batch, fed-batch and perfusion modes. Avid was recently named the first pre-approved U.S. contract manufacturer of the DSM/Crucell PERC.C6(R) production system. For more information about Avid, visit www.avidbio.com.

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 three separate Phase II clinical programs in cancer and hepatitis C virus (HCV) infection with its lead product candidates bavituximab and Cotara(R). Peregrine also has in-house manufacturing capabilities through its wholly owned subsidiary Avid Bioservices, Inc., which provides development and bio-manufacturing 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 that Avid is unable to procure sufficient materials to process all runs requested by Catalyst, or that Catalyst terminates the agreement prior to its expiration because it decides to end the program or because Avid is unable to fulfill it's drug delivery obligations. 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 year ended April 30, 2008 and the quarterly report on Form 10-Q for the quarter ended July 31, 2008. 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.

     Contacts:
     Avid Bioservices                       Media
     Candice Fliedner                       GendeLLindheim BioCom Partners
     (714) 508-6188                         Barbara Lindheim
                                            (212) 918-4650

SOURCE Peregrine Pharmaceuticals, Inc.

http://www.peregrineinc.com

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