UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
DC 20549
FORM
8-K
CURRENT
REPORT
Pursuant
to Section 13 or 15(d) of the
Securities
Exchange Act of 1934
Date
of
Report (Date of earliest event reported):
September 10, 2007
(Exact
name of registrant as specified in its charter)
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Delaware
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0-17085
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95-3698422
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(State
of other jurisdiction
of
incorporation)
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(Commission
File Number)
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(IRS
Employer
Identification
No.)
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14282
Franklin Avenue, Tustin, California 92780
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(Address
of Principal Executive Offices)
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Registrant’s
telephone number, including area code: (714)
508-6000
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Not
Applicable
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(Former
name or former address, if changed since last
report)
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Check
the
appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following
provisions (see General Instruction A.2 below):
o
Written
communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425).
o
Soliciting
material pursuant to Rule 14A-12 under the Exchange Act (17 CFR
240.14a-12)
o
Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17
CFR.14d-2(b))
o
Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))
ITEM
2.02 RESULTS OF OPERATIONS
AND FINANCIAL CONDITION
On
September 10, 2007, Peregrine Pharmaceuticals, Inc. issued a press release
to
report the Company’s financial results for the first quarter ended July 31,
2007. A copy of the press release is attached to this current report on Form
8-K
as Exhibit 99.1. No additional information is included in this Current Report
on
Form 8-K.
The
information included in this Current Report on Form 8-K, including the exhibit
hereto, shall not be deemed “filed” for purposes of, nor shall it be deemed
incorporated by reference in, any filing under the Securities Act of 1933 or
the
Securities Exchange Act of 1934, except as expressly set forth by specific
reference in such a filing.
ITEM
9.01 FINANCIAL STATEMENTS
AND EXHIBITS
(c) Exhibits.
The following material is filed as an exhibit to this Current Report on Form
8-K:
Exhibit
Number
99.1 Press
Release issued September 10, 2007
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the Registrant
has
duly caused this report to be signed on its behalf by the undersigned hereunto
duly authorized.
| PEREGRINE PHARMACEUTICALS, INC. | ||
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| Date: September 11, 2007 | By: | /s/ Steven W. King |
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Steven W. King |
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President,
Chief Executive Officer and Director
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EXHIBIT
INDEX
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Exhibit
Number
|
Description |
| 99.1 | Press Release issued September 10, 2007 |
Exhibit
99.1
| Contacts: | |
| GendeLLindheim BioCom Partners | |
| Investors | Media |
| (800) 987-8256 | Barbara Lindheim |
| info@peregrineinc.com | (212) 918-4650 |
PEREGRINE
PHARMACEUTICALS REPORTS FIRST QUARTER
FISCAL
YEAR 2008 FINANCIAL RESULTS
TUSTIN,
Calif., September 10, 2007
--
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.
--Tables
to Follow--
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PEREGRINE
PHARMACEUTICALS, INC.
CONDENSED
CONSOLIDATED BALANCE SHEETS
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July
31,
2007
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April
30,
2007
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Unaudited
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ASSETS
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CURRENT
ASSETS:
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Cash
and cash equivalents
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$
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30,635,000
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$
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16,044,000
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Trade
and other receivables
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1,514,000
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750,000
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Inventories,
net
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2,363,000
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1,916,000
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Prepaid
expenses and other current assets
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1,172,000
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1,188,000
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Total
current assets
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35,684,000
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19,898,000
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PROPERTY:
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Leasehold
improvements
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655,000
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646,000
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Laboratory
equipment
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3,587,000
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3,533,000
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Furniture,
fixtures and office equipment
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886,000
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873,000
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5,128,000
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5,052,000
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Less
accumulated depreciation and amortization
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(3,332,000
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)
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(3,212,000
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)
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Property,
net
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1,796,000
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1,840,000
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Other
assets
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1,188,000
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1,259,000
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TOTAL
ASSETS
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$
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38,668,000
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$
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22,997,000
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-more-
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PEREGRINE
PHARMACEUTICALS, INC.
CONDENSED
CONSOLIDATED BALANCE SHEETS (continued)
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July
31,
2007
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April
30,
2007
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Unaudited
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LIABILITIES
AND STOCKHOLDERS' EQUITY
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CURRENT
LIABILITIES:
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Accounts
payable
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$
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1,366,000
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$
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1,683,000
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Accrued
clinical trial site fees
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113,000
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228,000
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Accrued
legal and accounting fees
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281,000
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392,000
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Accrued
royalties and license fees
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107,000
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337,000
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Accrued
payroll and related costs
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664,000
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874,000
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Notes
payable, current portion
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317,000
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379,000
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Capital
lease obligation, current portion
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17,000
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17,000
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Deferred
revenue
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1,820,000
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1,060,000
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Other
current liabilities
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427,000
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885,000
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Total
current liabilities
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5,112,000
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5,855,000
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Notes
payable, less current portion
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69,000
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119,000
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Capital
lease obligation, less current portion
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26,000
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30,000
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Deferred
license revenue
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-
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4,000
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Commitments
and contingencies
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STOCKHOLDERS'
EQUITY:
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Preferred
stock-$.001 par value; authorized 5,000,000 shares; non-voting;
nil
shares outstanding
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-
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-
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Common
stock-$.001 par value; authorized 250,000,000 shares; outstanding
-
226,210,617 and 196,112,201, respectively
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226,000
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196,000
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Additional
paid-in capital
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245,551,000
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224,453,000
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Accumulated
deficit
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(212,316,000
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)
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(207,660,000
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)
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Total
stockholders' equity
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33,461,000
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16,989,000
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TOTAL
LIABILITIES AND STOCKHOLDERS' EQUITY
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$
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38,668,000
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$
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22,997,000
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-more-
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PEREGRINE
PHARMACEUTICALS, INC.
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
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THREE
MONTHS ENDED
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July
31, 2007
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July
31, 2006
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Unaudited
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Unaudited
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REVENUES:
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Contract
manufacturing revenue
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$
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1,621,000
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$
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398,000
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License
revenue
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4,000
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23,000
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|||||
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Total
revenues
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1,625,000
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421,000
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COSTS
AND EXPENSES:
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Cost
of contract manufacturing
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1,181,000
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530,000
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Research
and development
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3,624,000
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4,041,000
|
|||||
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Selling,
general and administrative
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1,708,000
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1,641,000
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Total
costs and expenses
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6,513,000
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6,212,000
|
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LOSS
FROM OPERATIONS
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(4,888,000
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)
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(5,791,000
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)
|
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OTHER
INCOME (EXPENSE):
|
|||||||
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Interest
and other income
|
239,000
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349,000
|
|||||
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Interest
and other expense
|
(7,000
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)
|
(15,000
|
)
|
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NET
LOSS
|
$
|
(4,656,000
|
)
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$
|
(5,457,000
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)
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WEIGHTED
AVERAGE COMMON SHARES OUTSTANDING
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206,071,568
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184,108,083
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|||||
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BASIC
AND DILUTED LOSS PER COMMON SHARE
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$
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(0.02
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)
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$
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(0.03
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)
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###