TUSTIN, Calif., Sept. 10 /PRNewswire-FirstCall/ -- Peregrine Pharmaceuticals, Inc. (Nasdaq: PPHM), a clinical stage biopharmaceutical company developing monoclonal antibodies for the treatment of cancer and hepatitis C virus (HCV) infection, today announced financial results for the first quarter of fiscal year 2008 ended July 31, 2007. The company reported a consolidated net loss of $4,656,000, or $0.02 per basic and diluted share, compared to a consolidated net loss of $5,457,000 or $0.03 per basic and diluted share for the same prior year period.

Total revenues for the current quarter increased 286% to $1,625,000 versus $421,000 for the comparable quarter last year. Avid Bioservices, the company's wholly-owned contract manufacturing subsidiary, contributed $1,621,000 in contract manufacturing revenue versus $398,000 recorded in the similar prior year period.

"The first quarter has set the foundation for what we expect to be a year of solid achievement," said Steven W. King, president and CEO of Peregrine. "We made continued progress in each of our three key clinical programs, including reporting positive top-line results in our first cancer study of bavituximab in combination with chemotherapy; initiating new clinical trials in our bavituximab HCV and Cotara® brain cancer programs; submitting a new bavituximab Phase II clinical trial protocol and achieving significant revenue growth at our Avid subsidiary. With these outstanding accomplishments in the quarter, plus the anticipated submission of at least three more clinical trial protocols by the end of the calendar year, we are well positioned to continue our positive momentum."

Mr. King continued, "We further strengthened the company's financial position during the quarter with the infusion of approximately $20.9 million in net proceeds in a registered direct offering with several institutional investors. These capital resources will enable us to continue to generate data from our three current clinical programs, which give us multiple opportunities for success in our key value driving programs during fiscal year 2008."

Mr. King concluded, "Another important development during the quarter was the announcement that our proposal to investigate the utility of bavituximab along with other anti-phosphotidylserine antibodies as a treatment for hemorrhagic fever virus was selected for negotiation of a 5-year contract award by the Defense Threat Reduction Agency of the U.S. Department of Defense, potentially valued at up to $44.5 million. We consider this a significant third party validation of the broad anti-viral potential of our technology and contract negotiations are proceeding."

Total costs and expenses slightly increased by 5% to $6,513,000 for the quarter ended July 31, 2007 from $6,212,000 for the same quarter last year. The increase in total expenses was primarily due to an increase in cost of contract manufacturing related to higher reported revenue during the quarter, as well as a small increase in selling, general and administrative expenses. These current quarter increases were offset by a decrease in research and development expenses of $417,000 during the current quarter ended July 31, 2007 primarily due to the timing of initiating new clinical studies.

Interest and other income decreased $110,000 during the current quarter compared to the same prior year quarter. At July 31, 2007, the company had $30,635,000 in cash and cash equivalents, compared to $16,044,000 at fiscal year end April 30, 2007.

Conference Call

The company will host a live conference call and webcast on Monday, September 10, 2007 at 11:30 a.m. EDT/8:30 a.m. PDT to discuss its first quarter results.

To listen to a live broadcast of the call over the Internet or to review the archived webcast, please visit: http://www.peregrineinc.com. The webcast will be archived on Peregrine's website for 30 days.

To listen to the call via telephone, please call the following number approximately 10 minutes prior to the scheduled time of the conference call: 1-800-860-2442 and request to join the Peregrine Pharmaceuticals conference call. A telephonic replay of the conference call will be available one hour after the conclusion of the call through September 17, 2007 by calling (877) 344-7529, passcode 382933#.

About Peregrine Pharmaceuticals

Peregrine Pharmaceuticals, Inc. is a biopharmaceutical company with a portfolio of innovative product candidates in clinical trials for the treatment of cancer and hepatitis C virus (HCV) infection. The company is pursuing three separate clinical programs in cancer and HCV infection in the U.S. and India with its lead product candidates bavituximab and Cotara®. Peregrine also has in-house manufacturing capabilities through its wholly owned subsidiary Avid Bioservices, Inc. (http://www.avidbio.com), which provides development and bio-manufacturing services for both Peregrine and outside customers. Additional information about Peregrine can be found at http://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 the company may experience delays in clinical trial patient enrollment, the risk that Avid's revenue growth may slow or decline, the risk that future protocol submissions may not be approved, and the uncertainty as to whether the company will successfully consummate a contract with the Defense Threat Reduction Agency. 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 year ended April 30, 2007. 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.
    CONDENSED CONSOLIDATED BALANCE SHEETS







                                                    July 31,        April 30,
                                                      2007            2007
                                                   Unaudited
    ASSETS



    CURRENT ASSETS:
    Cash and cash equivalents                    $30,635,000    $16,044,000
    Trade and other receivables                    1,514,000        750,000
    Inventories, net                               2,363,000      1,916,000
    Prepaid expenses and other current assets      1,172,000      1,188,000



            Total current assets                  35,684,000     19,898,000



    PROPERTY:
    Leasehold improvements                           655,000        646,000
    Laboratory equipment                           3,587,000      3,533,000
    Furniture, fixtures and office equipment         886,000        873,000



                                                   5,128,000      5,052,000
    Less accumulated depreciation and
     amortization                                 (3,332,000)    (3,212,000)



            Property, net                          1,796,000      1,840,000



    Other assets                                   1,188,000      1,259,000



    TOTAL ASSETS                                 $38,668,000    $22,997,000







                                                   July 31,        April 30,
                                                     2007            2007
                                                   Unaudited
    LIABILITIES AND STOCKHOLDERS' EQUITY



    CURRENT LIABILITIES:
    Accounts payable                              $1,366,000     $1,683,000
    Accrued clinical trial site fees                 113,000        228,000
    Accrued legal and accounting fees                281,000        392,000
    Accrued royalties and license fees               107,000        337,000
    Accrued payroll and related costs                664,000        874,000
    Notes payable, current portion                   317,000        379,000
    Capital lease obligation, current portion         17,000         17,000
    Deferred revenue                               1,820,000      1,060,000
    Other current liabilities                        427,000        885,000



            Total current liabilities              5,112,000      5,855,000





    Notes payable, less current portion               69,000        119,000
    Capital lease obligation, less current portion    26,000         30,000
    Deferred license revenue                             -            4,000
    Commitments and contingencies



    STOCKHOLDERS' EQUITY:
    Preferred stock-$.001 par value; authorized
     5,000,000 shares; non-voting; nil shares
     outstanding                                         -              -
    Common stock-$.001 par value; authorized
     250,000,000 shares; outstanding
     -- 226,210,617 and 196,112,201, respectively    226,000        196,000
    Additional paid-in capital                   245,551,000    224,453,000
    Accumulated deficit                         (212,316,000)  (207,660,000)



           Total stockholders' equity             33,461,000     16,989,000



    TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY   $38,668,000    $22,997,000







                                                      THREE MONTHS ENDED
                                                July 31, 2007   July 31, 2006
                                                   Unaudited      Unaudited



    REVENUES:
    Contract manufacturing revenue                $1,621,000      $ 398,000
    License revenue                                    4,000         23,000
    Total revenues                                 1,625,000        421,000



    COSTS AND EXPENSES:
    Cost of contract manufacturing                 1,181,000        530,000
    Research and development                       3,624,000      4,041,000
    Selling, general and administrative            1,708,000      1,641,000
    Total costs and expenses                       6,513,000      6,212,000



    LOSS FROM OPERATIONS                          (4,888,000)    (5,791,000)



    OTHER INCOME (EXPENSE):
    Interest and other income                        239,000        349,000
    Interest and other expense                        (7,000)       (15,000)



    NET LOSS                                     $(4,656,000)   $(5,457,000)



    WEIGHTED AVERAGE COMMON SHARES OUTSTANDING   206,071,568    184,108,083



    BASIC AND DILUTED LOSS PER COMMON SHARE           $(0.02)        $(0.03)





    Contacts:
    GendeLLindheim BioCom Partners
    Investors                                          Media
    (800) 987-8256                                     Barbara Lindheim
    info@peregrineinc.com                              (212) 918-4650

SOURCE Peregrine Pharmaceuticals, Inc.

CONTACT:
investors,
GendeLLindheim BioCom Partners,
800-987-8256,
info@peregrineinc.com;
or
media,
Barbara Lindheim,
+1-212-918-4650,
for Peregrine Pharmaceuticals, Inc.

Web site: http://www.peregrineinc.com