Document and Entity Information	3 Months Ended
Document and Entity Information	Jul. 31, 2015	Sep. 04, 2015
Document And Entity Information
Entity Registrant Name	PEREGRINE PHARMACEUTICALS INC
Entity Central Index Key	0000704562
Document Type	10-Q
Document Period End Date	Jul. 31, 2015
Amendment Flag	false
Current Fiscal Year End Date	--04-30
Is Entity a Well-known Seasoned Issuer?	No
Is Entity a Voluntary Filer?	No
Is Entity's Reporting Status Current?	Yes
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		202,124,031
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2016

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (USD $)	Jul. 31, 2015	Apr. 30, 2015
CURRENT ASSETS:
Cash and cash equivalents	$ 59,016,000	$ 68,001,000
Trade and other receivables, net	1,805,000	3,813,000
Inventories	10,457,000	7,354,000
Prepaid expenses and other current assets, net	1,052,000	1,355,000
Total current assets	72,330,000	80,523,000
Property and equipment, net	18,395,000	15,124,000
Other assets	1,307,000	1,817,000
TOTAL ASSETS	92,032,000	97,464,000
CURRENT LIABILITIES:
Accounts payable	9,840,000	10,385,000
Accrued clinical trial and related fees	4,106,000	3,910,000
Accrued payroll and related costs	3,094,000	4,606,000
Deferred revenue	8,291,000	6,630,000
Customer deposits	9,599,000	11,363,000
Other current liabilities	620,000	437,000
Total current liabilities	35,550,000	37,331,000
Deferred rent, less current portion	1,036,000	1,098,000
Commitments and contingencies
STOCKHOLDERS' EQUITY:
Preferred stock - $0.001 par value; authorized 5,000,000 shares; issued and outstanding - 1,574,764 and 1,574,764, respectively	2,000	2,000
Common stock-$0.001 par value; authorized 325,000,000 shares; issued and outstanding - 200,983,948 and 193,346,627, respectively	201,000	193,000
Additional paid-in-capital	522,590,000	512,464,000
Accumulated deficit	(467,347,000)	(453,624,000)
Total stockholders' equity	55,446,000	59,035,000
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 92,032,000	$ 97,464,000

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $)	Jul. 31, 2015	Apr. 30, 2015
Statement of Financial Position [Abstract]
Preferred stock par value (in Dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, shares issued	1,574,764	1,574,764
Preferred stock, shares outstanding	1,574,764	1,574,764
Common stock par value (in Dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized	325,000,000	325,000,000
Common stock, shares issued	200,983,948	193,346,627
Common stock, shares outstanding	200,983,948	193,346,627

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (Unaudited) (USD $)	3 Months Ended
	Jul. 31, 2015	Jul. 31, 2014
REVENUES:
Contract manufacturing revenue	$ 9,379,000	$ 5,496,000
License revenue	292,000	0
Total revenues	9,671,000	5,496,000
COSTS AND EXPENSES:
Cost of contract manufacturing	4,608,000	3,583,000
Research and development	13,918,000	10,201,000
Selling, general and administrative	4,899,000	4,883,000
Total costs and expenses	23,425,000	18,667,000
LOSS FROM OPERATIONS	(13,754,000)	(13,171,000)
OTHER INCOME (EXPENSE):
Interest and other income	31,000	42,000
NET LOSS	(13,723,000)	(13,129,000)
COMPREHENSIVE LOSS	(13,723,000)	(13,129,000)
Series E preferred stock accumulated dividends	(1,378,000)	(1,028,000)
NET LOSS ATTRIBUTABLE TO COMMON STOCKHOLDERS	$ (15,101,000)	$ (14,157,000)
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING	197,317,374	179,118,255
BASIC AND DILUTED LOSS PER COMMON SHARE	$ (0.08)	$ (0.08)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (USD $)	3 Months Ended
	Jul. 31, 2015	Jul. 31, 2014
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (13,723,000)	$ (13,129,000)
Adjustments to reconcile net loss to net cash used in operating activities:
Share-based compensation	1,183,000	1,776,000
Depreciation and amortization	234,000	277,000
Changes in operating assets and liabilities:
Trade and other receivables, net	2,008,000	(59,000)
Inventories	(3,103,000)	(468,000)
Prepaid expenses and other current assets, net	303,000	536,000
Other non-current assets	15,000	(29,000)
Accounts payable	(2,851,000)	2,518,000
Accrued clinical trial and related fees	196,000	(2,546,000)
Accrued payroll and related expenses	(1,512,000)	(1,183,000)
Deferred revenue	1,661,000	(863,000)
Customer deposits	(1,764,000)	466,000
Other accrued expenses and current liabilities	183,000	108,000
Deferred rent	(62,000)	(47,000)
Net cash used in operating activities	(17,232,000)	(12,643,000)
CASH FLOWS FROM INVESTING ACTIVITIES:
Property and equipment acquisitions	(1,099,000)	(1,349,000)
Decrease in other assets	395,000	516,000
Net cash used in investing activities	(704,000)	(833,000)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of common stock, net of issuance costs of $275,000 and $14,000, respectively	9,891,000	421,000
Proceeds from issuance of Series E preferred stock, net of issuance costs of $516,000	0	9,484,000
Proceeds from exercise of stock options, net of issuance costs of nil and $3,000, respectively	93,000	112,000
Dividends paid on preferred stock	(1,033,000)	(771,000)
Principal payments on capital leases	0	(4,000)
Net cash provided by financing activities	8,951,000	9,242,000
NET DECREASE IN CASH AND CASH EQUIVALENTS	(8,985,000)	(4,234,000)
CASH AND CASH EQUIVALENTS, beginning of period	68,001,000	77,490,000
CASH AND CASH EQUIVALENTS, end of period	59,016,000	73,256,000
SCHEDULE OF NON-CASH INVESTING AND FINANCING ACTIVITIES:
Accounts payable for purchase of property and equipment	2,306,000	128,000
Lease incentives	$ 0	$ 592,000

1. ORGANIZATION AND BUSINESS DESCRIPTION

3 Months Ended

Jul. 31, 2015

Organization And Business Description

1. ORGANIZATION AND BUSINESS DESCRIPTION

Peregrine Pharmaceuticals, Inc. is a biopharmaceutical company focused on developing novel investigational products that help utilize the body’s own immune system to fight cancer, also known as immunotherapy. Our lead immunotherapy candidate, bavituximab, is in Phase III development for the treatment of previously-treated non-small cell lung cancer (the “Phase III SUNRISE trial”) along with several investigator-sponsored trials evaluating other treatment combinations and additional oncology indications. Peregrine also has in-house manufacturing capabilities through its wholly-owned biomanufacturing subsidiary Avid Bioservices, Inc. (“Avid”), a contract manufacturing organization that provides fully integrated current Good Manufacturing Practices services Peregrine and its third-party customers.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

3 Months Ended

Jul. 31, 2015

Accounting Policies [Abstract]

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

The accompanying interim unaudited condensed consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles (“U.S. GAAP”) and with the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) related to quarterly reports on Form 10-Q. Accordingly, they do not include all of the information and disclosures required by U.S. GAAP for a complete set of financial statements. These interim unaudited condensed consolidated financial statements and notes thereto should be read in conjunction with the audited consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended April 30, 2015. The condensed consolidated balance sheet at April 30, 2015, has been derived from audited financial statements at that date. The unaudited financial information for the interim periods presented herein reflects all adjustments which, in the opinion of management, are necessary for a fair presentation of the financial condition and results of operations for the periods presented, with such adjustments consisting only of normal recurring adjustments. Results of operations for interim periods covered by this quarterly report on Form 10-Q may not necessarily be indicative of results of operations for the full fiscal year.

The interim unaudited condensed consolidated financial statements include the accounts of Peregrine and Avid. All intercompany accounts and transactions have been eliminated in the interim unaudited condensed consolidated financial statements.

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts, as well as disclosures of commitments and contingencies in the financial statements and accompanying notes. Actual results could differ from those estimates.

In addition, our accompanying interim unaudited condensed consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The financial statements do not include any adjustments relating to the recoverability of the recorded assets or the classification of liabilities that may be necessary should it be determined that we are unable to continue as a going concern.

Liquidity and Financial Condition

At July 31, 2015, we had $59,016,000 in cash and cash equivalents. We have expended substantial funds on the research and development of our product candidates, and funding the operations of Avid. As a result, we have historically experienced negative cash flows from operations since our inception and we expect negative cash flows from operations to continue in the foreseeable future. Therefore, unless and until we are able to generate sufficient revenue from Avid’s contract manufacturing services or from the sale or licensing of our product candidates under development, we expect such losses to continue in the foreseeable future.

Our ability to continue to fund our clinical trials and development efforts is highly dependent on the amount of cash and cash equivalents on hand combined with our ability to raise additional capital to support our future operations through one or more methods, including but not limited to, (i) raising additional capital in the equity markets, (ii) licensing or partnering our product candidates in development, or (iii) generating additional revenue from Avid.

Historically, we have funded a significant portion of our operations through the issuance of equity. During the three months ended July 31, 2015, we raised $10,166,000 in aggregate gross proceeds from the sale of shares of our common stock (Note 6). Subsequent to July 31, 2015 and through September 9, 2015, we raised an additional $2,182,000 in aggregate gross proceeds from the sale of shares of our common stock under two separate At Market Issuance Sales Agreements (Note 12). As of September 9, 2015, $148,199,000 remained available to us under our two effective shelf registration statements, which allows us from time to time to offer and sell shares of our common stock or preferred stock, in one or more offerings, either individually or in combination.

Our ability to raise additional capital in the equity markets to fund our obligations in future periods is dependent on a number of factors, including, but not limited to, the market demand for our common stock or 10.5% Series E Convertible Preferred Stock (the “Series E Preferred Stock”). The market demand or liquidity of our common stock or Series E Preferred Stock is subject to a number of risks and uncertainties, including but not limited to, negative economic conditions, adverse market conditions, adverse clinical trial results and significant delays in one or more clinical trials. If we are unable to either (i) raise sufficient capital in the equity markets, (ii) license or partner our products in development, or (iii) generate additional revenue from Avid, or any combination thereof, we may need to delay, scale back, or eliminate some or all our research and development efforts, delay the commercial launch of bavituximab, if approved, or restructure our operations. In addition, even if we are able to raise additional capital, it may not be at a price or on terms that are favorable to us.

Cash and Cash Equivalents

We consider all highly liquid, short-term investments with an initial maturity of three months or less to be cash equivalents.

Concentrations of Credit Risk and Customer Base

Financial instruments that potentially subject us to a significant concentration of credit risk consist of cash and cash equivalents and trade receivables. We maintain our cash balances primarily with one major commercial bank and our deposits held with the bank exceed the amount of government insurance limits provided on our deposits. We are exposed to credit risk in the event of default by the major commercial bank holding our cash balances to the extent of the cash amount recorded on the accompanying interim unaudited condensed consolidated balance sheet.

Our trade receivables from amounts billed for contract manufacturing services provided by Avid have historically been derived from a small customer base. Most contracts require up-front payments and installment payments during the service period. We perform periodic evaluations of the financial condition of our customers and generally do not require collateral, but we can terminate any contract if a material default occurs. Approximately 88% and 97% of the trade receivables balance at July 31, 2015 and April 30, 2015 (Note 3), respectively, represents amounts due from two customers.

In addition, contract manufacturing revenue generated by Avid has historically been derived from a small customer base (Note 9). These customers typically do not enter into long-term contracts because their need for drug supply depends on a variety of factors, including the drug’s stage of development, their financial resources, and, with respect to commercial drugs, demand for the drug in the market. Our future results of operations could be adversely affected if revenue from any one of our primary customers is significantly reduced or eliminated.

Revenue Recognition

We currently derive revenue from two sources: (i) contract manufacturing services provided by Avid, and (ii) licensing revenue related to agreements associated with Peregrine’s technologies under development.

We recognize revenue in accordance with the authoritative guidance for revenue recognition. We recognize revenue when all of the following criteria are met: (i) persuasive evidence of an arrangement exists, (ii) delivery (or passage of title) has occurred or services have been rendered, (iii) the seller’s price to the buyer is fixed or determinable, and (iv) collectability is reasonably assured. We also comply with the authoritative guidance for revenue recognition regarding arrangements with multiple deliverables.

Contract Manufacturing Revenue

Revenue associated with contract manufacturing services provided by Avid is recognized once the service has been rendered and/or upon shipment (or passage of title) of the product to the customer. On occasion, we recognize revenue on a “bill-and-hold” basis in accordance with the authoritative guidance. Under “bill-and-hold” arrangements, revenue is recognized once the product is complete and ready for shipment, title and risk of loss has passed to the customer, management receives a written request from the customer for “bill-and-hold” treatment, the product is segregated from other inventory, and no further performance obligations exist.

In addition, we also follow the authoritative guidance when reporting revenue as gross when we act as a principal versus reporting revenue as net when we act as an agent. For transactions in which we act as a principal, have discretion to choose suppliers, bear credit and inventory risk and perform a substantive part of the services, revenue is recorded at the gross amount billed to a customer and costs associated with these reimbursements are reflected as a component of cost of sales for contract manufacturing services.

Any amounts received prior to satisfying our revenue recognition criteria are recorded as deferred revenue in the accompanying interim unaudited condensed consolidated financial statements. We also record a provision for estimated contract losses, if any, in the period in which they are determined.

License Revenue

Revenue associated with licensing agreements primarily consists of non-refundable upfront license fees, non-refundable annual license fees and milestone payments. Non-refundable upfront license fees received under license agreements, whereby continued performance or future obligations are considered inconsequential to the relevant license technology, are recognized as revenue upon delivery of the technology. If a licensing agreement has multiple elements, we analyze each element of our licensing agreements and consider a variety of factors in determining the appropriate method of revenue recognition of each element.

Multiple Element Arrangements. Prior to the adoption of Accounting Standards Update (“ASU”) No. 2009-13 on May 1, 2011, if a license agreement has multiple element arrangements, we analyze and determine whether the deliverables, which often include performance obligations, can be separated or whether they must be accounted for as a single unit of accounting in accordance with the authoritative guidance. Under multiple element arrangements, we recognize revenue for delivered elements only when the delivered element has stand-alone value and we have objective and reliable evidence of fair value for each undelivered element. If the fair value of any undelivered element included in a multiple element arrangement cannot be objectively determined, the arrangement would then be accounted for as a single unit of accounting, and revenue is recognized over the estimated period of when the performance obligation(s) are performed.

In addition, under certain circumstances, when there is objective and reliable evidence of the fair value of the undelivered items in an arrangement, but no such evidence for the delivered items, we utilize the residual method to allocate the consideration received under the arrangement. Under the residual method, the amount of consideration allocated to delivered items equals the total arrangement consideration less the aggregate fair value of the undelivered items, and revenue is recognized upon delivery of the undelivered items based on the relative fair value of the undelivered items.

For licensing agreements or material modifications of existing licensing agreements entered into after May 1, 2011, we follow the provisions of ASU No. 2009-13. If a licensing agreement includes multiple elements, we identify which deliverables represent separate units of accounting, and then determine how the arrangement consideration should be allocated among the separate units of accounting, which may require the use of significant judgment.

If a licensing agreement includes multiple elements, a delivered item is considered a separate unit of accounting if both of the following criteria are met:

The delivered item has value to the licensing partner on a standalone basis based on the consideration of the relevant facts and circumstances for each agreement; and

If the arrangement includes a general right of return relative to the delivered item, delivery or performance of the undelivered item is considered probable and substantially in our control.

Arrangement consideration is allocated at the inception of the agreement to all identified units of accounting based on their relative selling price. The relative selling price for each deliverable is determined using vendor specific objective evidence (“VSOE”) of selling price or third-party evidence of selling price if VSOE does not exist. If neither VSOE nor third-party evidence of selling price exists, we use our best estimate of the selling price for the deliverable. The amount of allocable arrangement consideration is limited to amounts that are fixed or determinable. The consideration received is allocated among the separate units of accounting, and the applicable revenue recognition criteria are applied to each of the separate units. Changes in the allocation of the sales price between delivered and undelivered elements can impact revenue recognition but do not change the total revenue recognized under any agreement.

Milestone Payments. Effective May 1, 2011, we adopted on a prospective basis the Milestone Method under ASU No. 2010-17 for new licensing agreements or material modifications of existing licensing agreements entered into after May 1, 2011. Under the Milestone Method, we recognize consideration that is contingent upon the achievement of a milestone in its entirety as revenue in the period in which the milestone is achieved only if the milestone is substantive in its entirety. A milestone is considered substantive when it meets all of the following criteria:

The consideration is commensurate with either the entity’s performance to achieve the milestone or the enhancement of the value of the delivered item(s) as a result of a specific outcome resulting from the entity’s performance to achieve the milestone;

The consideration relates solely to past performance; and

The consideration is reasonable relative to all of the deliverables and payment terms within the arrangement.

A milestone is defined as an event (i) that can only be achieved based in whole or in part on either the entity’s performance or on the occurrence of a specific outcome resulting from the entity’s performance, (ii) for which there is substantive uncertainty at the date the arrangement is entered into that the event will be achieved, and (iii) that would result in additional payments being due to us.

The provisions of ASU No. 2010-17 do not apply to contingent consideration for which payment is either contingent solely upon the passage of time or the result of a counterparty’s performance. We will assess the nature of, and appropriate accounting for, these payments on a case-by-case basis in accordance with the applicable authoritative guidance for revenue recognition.

Any amounts received prior to satisfying these revenue recognition criteria are recorded as deferred revenue in the accompanying interim unaudited condensed consolidated financial statements.

Fair Value Measurements

We determine fair value measurements in accordance with the authoritative guidance for fair value measurements and disclosures for all assets and liabilities within the scope of this guidance. This guidance, which among other things, defines fair value, establishes a consistent framework for measuring fair value and expands disclosure for each major asset and liability category measured at fair value on either a recurring or nonrecurring basis. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The guidance prioritizes the inputs used in measuring fair value into the following hierarchy:

Level 1 – Quoted prices in active markets for identical assets or liabilities.

Level 2 – Observable inputs other than quoted prices included in Level 1, such as assets or liabilities whose values are based on quoted market prices in markets where trading occurs infrequently or whose values are based on quoted prices of instruments with similar attributes in active markets.

Level 3 – Unobservable inputs that are supported by little or no market activity and significant to the overall fair value measurement.

As of July 31, 2015 and April 30, 2015, we do not have any Level 2 or Level 3 financial assets or liabilities and our cash and cash equivalents, which are primarily invested in money market funds with one major commercial bank, are carried at fair value based on quoted market prices for identical securities (Level 1 input).

Customer Deposits

Customer deposits primarily represent advance billings and/or payments received from Avid’s third-party customers prior to the initiation of contract manufacturing services.

Research and Development Expenses

Research and development expenses primarily include (i) payroll and related costs, including share-based compensation associated with research and development personnel, (ii) costs related to clinical trials and preclinical testing of our technologies under development, (iii) costs to develop and manufacture the product candidates, including raw materials and supplies, product testing, depreciation, and facility related expenses, (iv) expenses for research services provided by universities and contract laboratories, including sponsored research funding, and (v) other research and development expenses. Research and development expenses are charged to expense as incurred when these expenditures relate to our research and development efforts and have no alternative future uses.

Clinical trial costs are a significant component of our research and development expenses. We have a history of contracting with third parties that perform various clinical trial activities on our behalf in the ongoing development of our product candidates. The financial terms of these contracts are subject to negotiations and may vary from contract to contract and may result in uneven payment flow. Expenses related to clinical trials are accrued based on our estimates and/or representations from third parties (including clinical research organizations) regarding services performed. If the contracted amounts are modified (for instance, as a result of changes in the clinical trial protocol or scope of work to be performed), we modify our accruals accordingly on a prospective basis. Revisions in the scope of a contract are charged to expense in the period in which the facts that give rise to the revision become reasonably certain. There were no material adjustments for a change in estimate to research and development expenses in the accompanying interim unaudited condensed consolidated financial statements for the three months ended July 31, 2015 and 2014.

Under certain research and development agreements, we are obligated to make certain advance payments, including nonrefundable amounts, for goods or services that will be used or rendered for future research and development activities and are deferred and capitalized as prepaid research and development expenses. These advance payments are recognized as an expense in the period the related goods are delivered or the related services are performed. We assess our prepaid research and development expenses for impairment when events or changes in circumstances indicate that the carrying amount of the prepaid expense may not be recoverable or provide future economic benefit.

In addition, under certain in-licensing agreements associated with the research and development of our product candidates, we are obligated to pay certain milestone payments based on potential clinical development and regulatory milestones. These milestone payments have no alternative future uses (in other research and development projects or otherwise) and therefore have no separate economic values and are expensed as research and development costs at the time the costs are incurred. We have no in-licensed product candidates that have alternative future uses in research and development projects or otherwise.

Share-based Compensation

We account for stock options and other share-based awards granted under our equity compensation plans in accordance with the authoritative guidance for share-based compensation. The estimated fair value of share-based payments to employees in exchange for services is measured at the grant date, using a fair value based method, such as a Black-Scholes option valuation model, and is recognized as expense on a straight-line basis over the requisite service periods. The fair value of modifications to share-based awards, if any, is generally estimated using a Black-Scholes option valuation model, unless a lattice model is required. Share-based compensation expense recognized during the period is based on the value of the portion of the share-based payment that is ultimately expected to vest during the period. In addition, as of July 31, 2015, there were no outstanding share-based awards with market or performance conditions.

Periodically, we grant stock options and other share-based awards to non-employee consultants, which we account for in accordance with the authoritative guidance for share-based compensation. The cost of non-employee services received in exchange for share-based awards are measured based on either the fair value of the consideration received or the fair value of the share-based award issued, whichever is more reliably measurable. In addition, guidance requires share-based compensation related to unvested options and awards issued to non-employees to be recalculated at the end of each reporting period based upon the fair market value on that date until the share-based award has vested, and any cumulative catch-up adjustment to share-based compensation resulting from the re-measurement is recognized in the current period (Note 7).

Basic and Dilutive Net Loss Per Common Share

Basic net loss per common share is computed by dividing our net loss attributable to common stockholders by the weighted average number of shares of common stock outstanding during the period excluding the dilutive effects of stock options, shares of common stock expected to be issued under our employee stock purchase plan, warrants, and Series E Preferred Stock outstanding during the period. Diluted net loss per common share is computed by dividing our net loss attributable to common stockholders by the sum of the weighted average number of shares of common stock outstanding during the period plus the potential dilutive effects of stock options, shares of common stock expected to be issued under our employee stock purchase plan, warrants, and Series E Preferred Stock outstanding during the period. Net loss attributable to common stockholders represents our net loss plus Series E Preferred Stock accumulated dividends. Series E Preferred Stock accumulated dividends include dividends declared for the period (regardless of whether or not the dividends have been paid) and dividends accumulated for the period (regardless of whether or not the dividends have been declared).

The potential dilutive effect of stock options, shares of common stock expected to be issued under our employee stock purchase plan, and warrants outstanding during the period was calculated in accordance with the treasury stock method, but are excluded if their effect is anti-dilutive. The potential dilutive effect of Series E Preferred Stock outstanding during the period was calculated using the if-converted method assuming the conversion of Series E Preferred Stock as of the earliest period reported or at the date of issuance, if later, but are excluded if their effect is anti-dilutive. However, because the impact of stock options, shares of common stock expected to be issued under our employee stock purchase plan, warrants, and Series E Preferred Stock are anti-dilutive during periods of net loss, there was no difference between basic and diluted loss per common share amounts for the three months ended July 31, 2015 and 2014.

The calculation of weighted average diluted shares outstanding excludes the dilutive effect of outstanding stock options and shares of common stock expected to be issued under our employee stock purchase plan, to purchase up to an aggregate of 2,834,924 and 5,026,166 shares of common stock for the three months ended July 31, 2015 and 2014, respectively, since their impact are anti-dilutive during periods of net loss.

The calculation of weighted average diluted shares outstanding also excludes weighted average outstanding stock options and warrants to purchase up to an aggregate of 15,893,000 and 4,885,058 shares of common stock for the three months ended July 31, 2015 and 2014, respectively, as their exercise prices were greater than the average market price of our common stock during the respective periods, resulting in an anti-dilutive effect. In addition, weighted average shares of 13,237,860 and 8,159,545, assuming the issuance of common stock upon conversion of outstanding Series E Preferred Stock for the three months ended July 31, 2015 and 2014, respectively, were also excluded from the calculation of weighted average diluted shares outstanding as the conversion price was greater than the average market price during the respective periods, resulting in an anti-dilutive effect.

Pending Adoption of Recent Accounting Pronouncements

In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606): Revenue from Contracts with Customers, which guidance in this update will supersede the revenue recognition requirements in Topic 605, Revenue Recognition, and most industry-specific guidance when it becomes effective. ASU No. 2014-09 affects any entity that enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets unless those contracts are within the scope of other standards. The core principal of ASU No. 2014-09 is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. In doing so, companies will need to use more judgment and make more estimates than under current guidance. These may include identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. ASU No. 2014-09 is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period, and entities can transition to the standard either retrospectively or as a cumulative-effect adjustment as of the date of adoption. In August 2015, the FASB issued ASU No. 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date, which defers the effective date of ASU No. 2014-09 by one year, but permits entities to adopt one year earlier if they choose (i.e., the original effective date). As such, ASU No. 2014-09 will be effective for annual reporting periods ending after December 15, 2017, which will be our fiscal year 2019 beginning May 1, 2018. We are currently in the process of evaluating the impact of adoption of ASU No. 2014-09 on our consolidated financial statements and related disclosures, including what transition method will be elected.

In August 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements – Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. ASU No. 2014-15 is intended to define management’s responsibility to evaluate whether there is substantial doubt about an organization’s ability to continue as a going concern and to provide related footnote disclosures. Substantial doubt about an entity’s ability to continue as a going concern exists when relevant conditions and events, considered in the aggregate, indicate that it is probable that the entity will be unable to meet its obligations as they become due within one year after the date that the financial statements are issued (or available to be issued). ASU No. 2014-15 provides guidance to an organization’s management, with principles and definitions that are intended to reduce diversity in the timing and content of disclosures that are commonly provided by organizations in the financial statement footnotes. ASU No. 2014-15 is effective for annual reporting periods ending after December 15, 2016, which will be our fiscal year ending April 30, 2017, and to annual and interim periods thereafter. Early adoption is permitted. We have not yet determined the effect that the adoption of this guidance will have on the disclosures included in our consolidated financial statements.

In November 2014, the FASB issued ASU No. 2014-16, Derivatives and Hedging (Topic 815): Determining Whether the Host Contract in a Hybrid Financial Instrument Issued in the Form of a Share is More Akin to Debt or to Equity. ASU No. 2014-16 clarifies how current guidance should be interpreted in evaluating the economic characteristics and risks of a host contract in a hybrid financial instrument that is issued in the form of a share. In addition, ASU No. 2014-16 clarifies that in evaluating the nature of a host contract, an entity should assess the substance of the relevant terms and features (that is, the relative strength of the debt-like or equity-like terms and features given the facts and circumstances) when considering how to weight those terms and features. The effects of initially adopting ASU No. 2014-16 should be applied on a modified retrospective basis to existing hybrid financial instruments issued in a form of a share as of the beginning of the fiscal year for which the amendments are effective. Retrospective application is permitted to all relevant prior periods. ASU No. 2014-16 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015, which will be our fiscal year 2017 beginning May 1, 2016. Early adoption is permitted. We are currently in the process of evaluating the impact of adoption of ASU No. 2014-16 on our consolidated financial statements and related disclosures.

In June 2015, the FASB issued ASU No. 2015-10, Technical Corrections and Updates. ASU No. 2015-10 is intended to correct differences between original guidance and the Codification, clarify the guidance, correct references and make minor improvements affecting a variety of topics. ASU No. 2015-10 covers a wide range of topics in the Codification and is generally categorized as follows: Amendments Related to Differences between Original Guidance and the Codification; Guidance Clarification and Reference Corrections; Simplification; and, Minor Improvements. The amendments are effective for fiscal years and interim periods within those fiscal years, beginning after December 15, 2015, which will be our fiscal year 2017 beginning May 1, 2016. Early adoption is permitted. We are currently in the process of evaluating the impact of adoption of ASU No. 2015-10 on our consolidated financial statements and related disclosures.

In July 2015, the FASB issued ASU No. 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory. ASU 2015-11 requires that for entities that measure inventory using the first-in, first-out method, inventory should be measured at the lower of cost and net realizable value. ASU 2015-11 defines net realizable value as the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. ASU 2015-11 is effective for fiscal years beginning after December 15, 2016, which will be our fiscal year 2018 beginning May 1, 2017, and interim periods within those fiscal years. The amendments should be applied prospectively with earlier application permitted as of the beginning of an interim or annual reporting period. We are currently in the process of evaluating the impact of adoption of ASU No. 2015-11 on our consolidated financial statements and related disclosures.

- Definition

The entire disclosure for all significant accounting policies of the reporting entity.

+ References+ Details

3. TRADE AND OTHER RECEIVABLES

3 Months Ended

Jul. 31, 2015

Receivables [Abstract]

3. TRADE AND OTHER RECEIVABLES

Trade and other receivables, net, consists of the following:

	July 31, 2015		April 30, 2015
Trade receivables⁽¹⁾	$	1,417,000	$	3,423,000
Other receivables, net		388,000		390,000
Trade and other receivables, net	$	1,805,000	$	3,813,000

______________

(1)

Represents amounts billed for contract manufacturing services provided by Avid.

We continually monitor our allowance for doubtful accounts for all receivables. We apply judgment in assessing the ultimate realization of our receivables and we estimate an allowance for doubtful accounts based on various factors, such as, the aging of accounts receivable balances, historical experience, and the financial condition of our customers. Based on our analysis of our receivables as of July 31, 2015 and April 30, 2015, we determined an allowance for doubtful accounts of $5,000 and $5,000, respectively, was necessary with respect to our other receivables, and no allowance was necessary with respect to our trade receivables.

- Definition

The entire disclosure for claims held for amounts due a entity, excluding financing receivables. Examples include, but are not limited to, trade accounts receivables, notes receivables, loans receivables. Includes disclosure for allowance for credit losses.

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4. PROPERTY AND EQUIPMENT

3 Months Ended

Jul. 31, 2015

Property, Plant and Equipment [Abstract]

4. PROPERTY AND EQUIPMENT

Property and equipment is recorded at cost, less accumulated depreciation and amortization. Depreciation and amortization are computed using the straight-line method over the estimated useful lives of the related asset, generally ranging from three to ten years. Amortization of leasehold improvements is calculated using the straight-line method over the shorter of the estimated useful life of the asset or the remaining lease term. Construction-in-progress, which represents direct costs related to the construction of a manufacturing facility, is not depreciated until the asset is completed and placed into service. No interest was incurred or capitalized as construction-in-progress as of July 31, 2015.

Property and equipment, net, consists of the following:

	July 31, 2015			April 30, 2015
Leasehold improvements	$	1,564,000		$	1,538,000
Laboratory equipment		6,112,000			5,965,000
Furniture, fixtures, office equipment and software		4,023,000			3,991,000
Construction-in-progress		15,119,000			11,819,000
		26,818,000			23,313,000
Less accumulated depreciation and amortization		(8,423,000	)		(8,189,000	)
Property and equipment, net	$	18,395,000		$	15,124,000

Depreciation and amortization expense for three months ended July 31, 2015 and 2014 was $234,000 and $277,000, respectively.

- Definition

The entire disclosure for long-lived, physical assets used in the normal conduct of business and not intended for resale. Includes, but is not limited to, accounting policies and methodology, roll forwards, depreciation, depletion and amortization expense, including composite depreciation, accumulated depreciation, depletion and amortization expense, useful lives and method used, income statement disclosures, assets held for sale and public utility disclosures.

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5. INVENTORIES

3 Months Ended

Jul. 31, 2015

Inventory Disclosure [Abstract]

5. INVENTORIES

Inventories are stated at the lower of cost or market and primarily include raw materials, direct labor and overhead costs (work-in-process) associated with our wholly-owned subsidiary, Avid. Cost is determined by the first-in, first-out method. Inventories consist of the following:

	July 31, 2015		April 30, 2015
Raw materials	$	6,176,000	$	3,821,000
Work-in-process		4,281,000		3,533,000
Total inventories	$	10,457,000	$	7,354,000

- Definition

The entire disclosure for inventory. This may include, but is not limited to, the basis of stating inventory, the method of determining inventory cost, the major classes of inventory, and the nature of the cost elements included in inventory. If inventory is stated above cost, accrued net losses on firm purchase commitments for inventory and losses resulting from valuing inventory at the lower-of-cost-or-market may also be included. For LIFO inventory, may disclose the amount and basis for determining the excess of replacement or current cost over stated LIFO value and the effects of a LIFO quantities liquidation that impacts net income.

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6. STOCKHOLDERS' EQUITY

3 Months Ended

Jul. 31, 2015

Equity [Abstract]

6. STOCKHOLDERS' EQUITY

Common Stock

Our ability to continue our clinical trials and development efforts is highly dependent on the amount of cash and cash equivalents on hand combined with our ability to raise additional capital to support our future operations through one or more methods, including but not limited to, issuing additional equity.

During the three months ended July 31, 2015, we issued common stock under the following At Market Issuance Sales Agreement:

On June 13, 2014, we entered into an At Market Issuance Sales Agreement (“June 2014 AMI Agreement”), with MLV & Co. LLC (“MLV”), as amended on April 13, 2015, pursuant to which we may sell shares of our common stock through MLV, as agent, for aggregate gross proceeds of up to $25,000,000, in registered transactions from our shelf registration statement on Form S-3 (File No. 333-201245), which was declared effective by the SEC on January 15, 2015. During the three months ended July 31, 2015, we sold 7,538,230 shares of common stock at market prices under the June 2014 AMI Agreement, as amended, for aggregate gross proceeds of $10,166,000 before deducting commissions and other issuance costs of $275,000. As of July 31, 2015, aggregate gross proceeds of up to $1,290,000 remained available under the June 2014 AMI Agreement, as amended.

Series E Preferred Stock

June 2014 Series E AMI Agreement

On June 13, 2014, we entered into an At Market Issuance Sales Agreement (“Series E AMI Agreement”) with MLV, pursuant to which we may issue and sell shares of our Series E Preferred Stock through MLV, as agent, for aggregate gross proceeds of up to $30,000,000, in registered transactions from our shelf registration statement on Form S-3 (File No. 333-193113), which was declared effective by the SEC on January 16, 2014. No shares of Series E Preferred Stock were issued or sold during the three months ended July 31, 2015 under the Series E AMI Agreement. As of July 31, 2015, aggregate gross proceeds of up to $10,795,000 remained available under the Series E AMI Agreement.

Rights and Preferences

On February 12, 2014, we filed with the Secretary of State of the State of Delaware a Certificate of Designations of Rights and Preferences (the “Certificate of Designations”) to designate the Series E Preferred Stock. The Certificate of Designations designated 2,000,000 shares of Series E Preferred Stock out of our 5,000,000 shares of authorized but unissued shares of preferred stock. Certain terms of the Series E Preferred Stock include:

(i) The holders are entitled to receive a 10.50% per annum cumulative quarterly dividend, payable in cash, on or about the 1^st day of each of January, April, July, and October;

(ii) The dividend may increase to a penalty rate of 12.50% if: (a) we fail to pay dividends for any four consecutive or nonconsecutive quarterly dividend periods, or (b) once the Series E Preferred Stock becomes initially eligible for listing on a national securities exchange, we fail, for 180 or more consecutive days, to maintain such listing;

(iii) Following a change of control (as defined in the Certificate of Designations)of our company by a person or entity, we (or the acquiring entity) may, at our option, redeem the Series E Preferred Stock, in whole but not in part, within 120 days after the date on which the change of control has occurred for cash, at the redemption price;

(iv) We may not redeem the Series E Preferred Stock prior to February 11, 2017 (except following a change of control) and, on and after February 11, 2017, we may redeem the Series E Preferred Stock for cash at our option, from time to time, in whole or in part, at the redemption price;

(v) The redemption price is $25.00 per share, plus any accrued and unpaid dividends (whether or not earned or declared) to, but excluding, the redemption date;

(vi) The liquidation preference is $25.00 per share, plus any accrued and unpaid dividends (whether or not earned or declared);

(vii) The Series E Preferred Stock has no stated maturity date or mandatory redemption and is senior to all of our other securities;

(viii) There is a general conversion right with respect to the Series E Preferred Stock with an initial conversion price of $3.00, a special conversion right upon a change of control, and a market trigger conversion at our option in the event of Market Trigger (as defined in the Certificate of Designations); and

(ix) The holders of the Series E Preferred Stock have no voting rights, except as defined in the Certificate of Designations.

Series E Preferred Stock Dividend

On June 5, 2015, our Board of Directors declared a quarterly cash dividend of $0.65625 per share on our Series E Preferred Stock. The dividend payment is equivalent to an annualized 10.50% per share, based on the $25.00 per share stated liquidation preference, accruing from April 1, 2015 through June 30, 2015. The cash dividend of $1,033,000 was paid on July 1, 2015 to holders of the Series E Preferred Stock of record on June 19, 2015.

Shares of Common Stock Authorized and Reserved for Future Issuance

We are authorized to issue up to 325,000,000 shares of our common stock. As of July 31, 2015, 200,983,948 shares of our common stock were issued and outstanding. In addition, our common stock outstanding as of July 31, 2015 excluded the following shares of common stock reserved for future issuance:

24,721,484 shares of common stock reserved for issuance under outstanding option grants and available for issuance under our stock incentive plans;

2,443,056 shares of common stock reserved for and available for issuance under our Employee Stock Purchase Plan;

273,280 shares of common stock issuable upon exercise of outstanding warrants; and

45,668,156 shares of common stock issuable upon conversion of our outstanding Series E Preferred Stock ⁽¹⁾.

_____________

⁽¹⁾

The Series E Preferred Stock is convertible into a number of shares of common stock determined by dividing the liquidation preference of $25.00 per share by the conversion price, currently $3.00 per share. If all outstanding Series E Preferred Stock were converted at the $3.00 per share conversion price, the holders of Series E Preferred Stock would receive an aggregate of 13,123,033 shares of our common stock. However, we have reserved the maximum number of shares of our common stock that could be issued upon a change of control event assuming our shares of common stock are acquired for consideration of $0.855 per share or less. In this scenario, each outstanding share of Series E Preferred Stock could be converted into 29 shares of common stock, representing the Share Cap.

- Definition

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

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+ Details

7. EQUITY COMPENSATION PLANS

3 Months Ended

Jul. 31, 2015

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

7. EQUITY COMPENSATION PLANS

Stock Incentive Plans

As of July 31, 2015, we had an aggregate of 24,721,484 shares of common stock reserved for issuance under our stock incentive plans, of which, 23,867,253 shares were subject to outstanding options and 854,231 shares were available for future grants of share-based awards.

The following summarizes our stock option transaction activity for the three months ended July 31, 2015:

Stock Options	Shares			Weighted Average Exercisable Price
Outstanding, May 1, 2015		20,708,672			$ 1.54
Granted		3,523,911			$ 1.31
Exercised		(99,091	)		$ 0.94
Canceled or expired		(266,239	)		$ 1.70
Outstanding, July 31, 2015		23,867,253			$ 1.51

Employee Stock Purchase Plan

We have reserved a total of 5,000,000 shares of common stock to be purchased under our 2010 Employee Stock Purchase Plan (the “ESPP”), of which 2,443,056 shares remained available to purchase at July 31, 2015. The ESPP allows eligible employees on a voluntary basis to purchase shares of our common stock directly from us. Under the ESPP, we sell shares to participants at a price equal to the lesser of 85% of the fair market value of our common stock at the (i) beginning of a six-month offering period, or (ii) end of the six-month offering period. The ESPP provides for two six-month offering periods each year; the first offering period begins on the first trading day on or after each November 1; the second offering period begins on the first trading day on or after each May 1. No shares were purchased under the ESPP during the three months ended July 31, 2015 as the current six-month offering period ends on October 31, 2015.

Share-Based Compensation

Total share-based compensation expense is included in the accompanying interim unaudited condensed consolidated statements of operations as follows:

	Three Months Ended July 31,
	2015		2014
Cost of contract manufacturing	$	13,000	$	24,000
Research and development		471,000		743,000
Selling, general and administrative		699,000		1,009,000
Total share-based compensation expense	$	1,183,000	$	1,776,000

Share-based compensation from:
Stock options	$	1,124,000	$	1,697,000
Employee stock purchase plan		59,000		79,000
	$	1,183,000	$	1,776,000

As of July 31, 2015, the total estimated unrecognized compensation cost related to non-vested employee stock options was $5,946,000. This cost is expected to be recognized over a weighted average vesting period of 1.63 years based on current assumptions. In addition, as of July 31, 2015, the total estimated unrecognized compensation cost related to non-vested stock options granted to non-employees was $130,000 based on a July 31, 2015 measurement date. This cost is expected to be recognized over a weighted average vesting period of 0.95 years.

- Definition

The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.

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9. SEGMENT REPORTING

3 Months Ended

Jul. 31, 2015

Segment Reporting [Abstract]

9. SEGMENT REPORTING

Our business is organized into two reportable operating segments and both operate in the U.S. Peregrine is engaged in the research and development of monoclonal antibodies for the treatment and diagnosis of cancer. Avid is engaged in providing contract manufacturing services for Peregrine and third-party customers on a fee-for-service basis.

The accounting policies of the operating segments are the same as those described in Note 2. We evaluate the performance of our contract manufacturing services segment based on gross profit or loss from third-party customers. However, our products in the research and development segment are not evaluated based on gross profit or loss, but rather based on scientific progress of the technologies. As such, gross profit or loss is only provided for our contract manufacturing services segment in the below table. All revenues shown below are derived from transactions with third-party customers.

Segment information is summarized as follows:

	Three Months Ended July 31,
	2015			2014

Contract manufacturing services revenue	$	9,379,000		$	5,496,000
Cost of contract manufacturing services		4,608,000			3,583,000
Gross profit		4,771,000			1,913,000

Revenue from products in research and development		292,000			–
Research and development expense		(13,918,000	)		(10,201,000	)
Selling, general and administrative expense		(4,899,000	)		(4,883,000	)
Interest and other income		31,000			42,000
Net loss	$	(13,723,000	)	$	(13,129,000	)

Revenue generated from our contract manufacturing services segment was derived from a limited number of customers. The percentages below represent revenue derived from each customer as a percentage of total contract manufacturing services revenue:

	Three Months Ended July 31,
	2015		2014

Halozyme Therapeutics, Inc.		84%		100%
Customer A		15%		–
Other customers		1%		–
Total		100%		100%

In addition, during the three months ended July 31, 2015 and 2014, contract manufacturing services revenue was derived solely from U.S. based customers.

Revenue generated from our products in our research and development segment during the three months ended July 31, 2015 was directly related to license revenue recognized under certain agreements with an unrelated entity (Note 11).

Our long-lived assets are located in the U.S. and consist of leasehold improvements, laboratory equipment, furniture and fixtures, office equipment and software, construction-in-progress and are net of accumulated depreciation. Long-lived assets by segment consist of the following:

	July 31, 2015		April 30, 2015
Long-lived Assets, net:
Contract manufacturing services	$	16,140,000	$	12,800,000
Products in research and development		2,255,000		2,324,000
Total	$	18,395,000	$	15,124,000

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

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-URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e9054-108599

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-Publisher FASB

-Name Accounting Standards Codification

-Topic 280

-SubTopic 10

-Section 50

-Paragraph 31

-URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8924-108599

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-Publisher FASB

-Name Accounting Standards Codification

-Topic 280

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-Section 50

-Paragraph 40

-URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e9031-108599

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-Publisher FASB

-Name Accounting Standards Codification

-Topic 280

-SubTopic 10

-Section 50

-Paragraph 41

-URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e9038-108599

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-Publisher FASB

-Name Accounting Standards Codification

-Topic 280

-SubTopic 10

-Section 50

-Paragraph 33

-URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8971-108599

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-Publisher FASB

-Name Accounting Standards Codification

-Topic 280

-SubTopic 10

-Section 50

-Paragraph 12

-URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8595-108599

+ Details

10. COMMITMENTS AND CONTINGENCIES

3 Months Ended

Jul. 31, 2015

Commitments and Contingencies Disclosure [Abstract]

10. COMMITMENTS AND CONTINGENCIES

In the ordinary course of business, we are at times subject to various legal proceedings and disputes. We make provisions for liabilities when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. Such provisions are reviewed at least quarterly and adjusted to reflect the impact of any settlement negotiations, judicial and administrative rulings, advice of legal counsel, and other information and events pertaining to a particular case. Litigation is inherently unpredictable. Unless otherwise disclosed, we are unable to estimate the possible loss or range of loss for the legal proceedings described below. While it is not possible to accurately predict or determine the eventual outcome of these items, an adverse determination in one or more of these items currently pending could have a material adverse effect on our consolidated results of operations, financial position or cash flows.

Securities Related Class Action Lawsuit

On September 28, 2012, three complaints were filed in the U.S. District Court for the Central District of California against us and certain of our executive officers and one consultant (collectively, the “Defendants”) on behalf of certain purchasers of our common stock. The complaints have been brought as purported stockholder class actions, and, in general, include allegations that Defendants violated (i) Section 10(b) of the Exchange Act, and Rule 10b-5 promulgated thereunder and (ii) Section 20(a) of the Exchange Act, by making materially false and misleading statements regarding the interim results of our bavituximab Phase II second-line NSCLC trial, thereby artificially inflating the price of our common stock. The plaintiffs are seeking unspecified monetary damages and other relief. On February 5, 2013, the court consolidated the related actions with the low-numbered case (captioned Anderson v. Peregrine Pharmaceuticals, Inc., et al., Case No. 12-cv-1647-PSG (FMOx)). After the court issued two separate orders granting the Defendants’ two separate motions to dismiss, on May 1, 2014, the court issued a third order granting Defendants’ motion to dismiss the plaintiff’s amended complaint with prejudice. On May 29, 2014, the plaintiff filed a notice of appeal with respect to the court’s order granting Defendants’ motion to dismiss. Lead plaintiff’s opening brief with respect to the appeal was filed on December 15, 2014 and the Defendants’ answering brief was filed on January 30, 2015. Lead plaintiff filed a reply brief on February 27, 2015. We believe that the class action lawsuit is without merit and intend to vigorously defend the action.

Derivative Litigation

On May 9, 2013, an alleged shareholder filed, purportedly on behalf of us, a derivative lawsuit, captioned Roy v. Steven W. King, et al., Case No. 13-cv-0741-PSG (RNBx), in the U.S. District Court for the Central District of California against certain of our executive officers and directors. The complaint asserts claims for breach of fiduciary duty, abuse of control, gross mismanagement, waste of corporate assets and unjust enrichment arising from substantially similar factual allegations as those asserted in the consolidated securities class action lawsuit, described above (the “Securities Class Action”). The plaintiff is seeking, for our benefit, unspecified monetary damages and other relief. This case was subsequently transferred to the same court and judge handling the Securities Class Action lawsuit. On May 31, 2013, the judge issued an order administratively closing the case and inviting the parties to move to re-open after the final resolution of defendants’ motions to dismiss in the Securities Class Action.

On October 10, 2013, a derivative/class action complaint, captioned Michaeli v. Steven W. King, et al., C.A. No. 8994-VCL, was filed in the Court of Chancery of the State of Delaware against certain of our executive officers and directors. The complaint alleges that our directors and executives breached their respective fiduciary duties in connection with certain purportedly improper compensation decisions made by our Board of Directors during the past three fiscal years, including: (i) the grant of a stock option to Mr. King on May 4, 2012; (ii) the non-routine broad-based stock option grant to our directors, executives, all other employees and certain consultants on December 27, 2012; and (iii) the payment, during the past three fiscal years, of compensation to our non-employee directors. In addition, the complaint alleges that our directors breached their fiduciary duty of candor by filing and seeking stockholder action on the basis of an allegedly materially false and misleading proxy statement for our 2013 annual meeting of stockholders. The plaintiffs are seeking recession of a portion of the stock option grant to Mr. King on May 4, 2012 and the stock options granted to the defendants on December 27, 2012, as well as disgorgement of any excessive compensation paid to our non-employee directors during the three fiscal years prior to the filing of the complaint and other monetary relief for our benefit. The defendants filed their answer to the complaint on February 5, 2014. We believe that the derivative/class action complaint are without merit and intend to vigorously defend the action.

Other Legal Matters

On September 24, 2012, we filed a lawsuit, captioned Peregrine Pharmaceuticals, Inc. v. Clinical Supplies Management, Inc., Case No. 8:12-cv-01608 JST(AN) (C.D. Cal), against Clinical Supplies Management, Inc. (“CSM”), in the U.S. District Court for the Central District of California. In 2010, we had contracted with CSM as our third-party vendor responsible for distribution of the blinded investigational product used in our bavituximab Phase IIb second-line NSCLC trial. As part of the routine collection of data in advance of an end-of-Phase II meeting with regulatory authorities, we discovered major discrepancies between some patient sample test results and patient treatment code assignments. Consequently, we filed this lawsuit against CSM alleging, among other causes of action, breach of contract, negligence, negligence per se, constructive fraud and negligent misrepresentation arising from CSM’s performance of its contracted services. We are seeking monetary damages. On June 5, 2014, CSM filed with the court a Notice of Motion and Motion for Partial Summary Judgment seeking partial summary judgment on our claims for damages on the grounds that the limitation of liability clauses contained in our master services agreement with CSM are valid and enforceable. Our opposition to CSM’s motion was filed with the court on June 23, 2014, and the hearing on the motion was held on July 28, 2014. On July 30, 2014, the court issued its order holding that the limitation of liability clause did not apply to our claims for active negligence, negligent misrepresentation and constructive fraud, but did apply to our causes of action for breach of contract, passive negligence and negligence per se. On March 27, 2015, CSM filed with the court a Notice of Motion and Motion for Partial Summary Judgment seeking partial summary judgment on our claims for damages on the grounds that the causes of action for negligence, negligence per se, negligent misrepresentation, and constructive fraud are barred by the economic loss doctrine, as well as that the causes of action for negligent misrepresentation and constructive fraud cannot be established as a matter of law. Our opposition to CSM’s motion was filed with the court on April 13, 2015 and CSM’s reply to our motion was filed on April 20, 2015. On June 22, 2015, the court issued its order granting CSM’s Motion for Partial Summary Judgment. On September 8, 2015, we and CSM entered into a confidential settlement and release agreement to resolve all claims related to the complaint we filed on September 24, 2012 against CSM. Pursuant to the terms of the Settlement Agreement, (i) all claims asserted in the litigation by us will be dismissed with prejudice, (ii) each of the parties to the litigation will receive a full release of all claims, of any nature whatsoever, whether known or unknown, and (iii) CSM will pay to us the sum of $600,000 within thirty (30) days. We will record the settlement amount when payment is received.

- Definition

The entire disclosure for commitments and contingencies.

+ References+ Details

11. LICENSING AGREEMENTS

3 Months Ended

Jul. 31, 2015

Notes to Financial Statements

11. LICENSING AGREEMENTS

During May 2010, we entered into an assignment agreement and a license agreement (collectively, the “Agreements”) with an unrelated entity to develop our Tumor Necrosis Therapy technologies in certain Asia-Pacific Economic Cooperation countries. We determined, pursuant to the authoritative guidance for revenue recognition for multiple element arrangements applied as of the transaction date, to utilize the residual method to allocate the consideration received under the arrangement. Under the residual method, the amount of consideration allocated to all other elements in the arrangement (delivered and undelivered) equals the total arrangement consideration less the aggregate fair value of the undelivered elements with stand-alone fair value (i.e., manufacturing commitment services). During May 2015, all obligations and commitments associated with the undelivered elements (i.e., manufacturing commitment services) expired in accordance with the terms of the Agreements and therefore, we recognized revenue of $292,000, which amount is included in license revenue in the accompanying interim unaudited condensed consolidated financial statements for the three months ended July 31, 2015.

12. SUBSEQUENT EVENTS

3 Months Ended

Jul. 31, 2015

Subsequent Events [Abstract]

12. SUBSEQUENT EVENTS

Sale of Common Stock

June 2014 AMI Agreement - Subsequent to July 31, 2015 and through September 9, 2015, we sold 1,091,508 shares of common stock at market prices under the June 2014 AMI Agreement (Note 6) for aggregate gross proceeds of $1,290,000. As of September 9, 2015, we had raised the full amount of gross proceeds available to us under the June 2014 AMI Agreement.

August 2015 AMI Agreement - On August 7, 2015, we entered into an At Market Issuance Sales Agreement (“August 2015 AMI Agreement”), with MLV, pursuant to which we may sell shares of our common stock through MLV, as agent, for aggregate gross proceeds of up to $30,000,000. The shares of our common stock issuable under the August 2015 AMI Agreement are registered for sale to the public pursuant to a prospectus supplement filed on August 7, 2015 with the SEC in connection with a takedown from our shelf registration statement on Form S-3 (File No. 333-201245). We will pay MLV a commission equal to 2.5% of the gross proceeds from the sale of our common stock pursuant to the August 2015 AMI Agreement. As of September 9, 2015, we sold 752,760 shares of common stock at market prices under the August 2015 AMI Agreement for aggregate gross proceeds of $892,000.

Equity Distribution Agreement - On August 7, 2015, we entered into an Equity Distribution Agreement, with Noble International Investments, Inc., doing business as Noble Life Science Partners, a division of Noble Financial Capital Markets (“Noble”), pursuant to which we may sell shares of our common stock through Noble, as agent, for aggregate gross proceeds of up to $20,000,000. The shares of our common stock issuable under the Equity Distribution Agreement are registered for sale to the public pursuant to a prospectus supplement filed on August 7, 2015 with the SEC in connection with a takedown from our shelf registration statement on Form S-3 (File No. 333-201245). We will pay Noble a commission equal to 2.5% of the gross proceeds from the sale of our common stock pursuant to the Equity Distribution Agreement. As of September 9, 2015, we had not sold any shares of common stock under the Equity Distribution Agreement.

Series E Preferred Stock Dividend

On September 8, 2015, our Board of Directors declared a quarterly cash dividend of $0.65625 per share on our Series E Preferred Stock. The dividend payment is equivalent to an annualized 10.50% per share, based on the $25.00 per share stated liquidation preference, accruing from July 1, 2015 through September 30, 2015. The cash dividend is payable on October 1, 2015 to holders of the Series E Preferred Stock of record on September 18, 2015.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

3 Months Ended

Jul. 31, 2015

Accounting Policies [Abstract]

Basis of Presentation

Basis of Presentation

Liquidity and Financial Condition

Liquidity and Financial Condition

Cash and Cash Equivalents

Cash and Cash Equivalents

We consider all highly liquid, short-term investments with an initial maturity of three months or less to be cash equivalents.

Concentrations of Credit Risk and Customer Base

Concentrations of Credit Risk and Customer Base

Revenue Recognition

Contract Manufacturing Revenue

License Revenue

If a licensing agreement includes multiple elements, a delivered item is considered a separate unit of accounting if both of the following criteria are met:

The delivered item has value to the licensing partner on a standalone basis based on the consideration of the relevant facts and circumstances for each agreement; and

If the arrangement includes a general right of return relative to the delivered item, delivery or performance of the undelivered item is considered probable and substantially in our control.

The consideration relates solely to past performance; and

The consideration is reasonable relative to all of the deliverables and payment terms within the arrangement.

Any amounts received prior to satisfying these revenue recognition criteria are recorded as deferred revenue in the accompanying interim unaudited condensed consolidated financial statements.

Fair Value Measurements

Fair Value Measurements

Level 1 – Quoted prices in active markets for identical assets or liabilities.

Level 3 – Unobservable inputs that are supported by little or no market activity and significant to the overall fair value measurement.

Customer Deposits

Customer Deposits

Customer deposits primarily represent advance billings and/or payments received from Avid’s third-party customers prior to the initiation of contract manufacturing services.

Research and Development Expenses

Share-based Compensation

Share-based Compensation

Basic and Dilutive Net Loss Per Common Share

Pending Adoption of Recent Accounting Pronouncements

Pending Adoption of Recent Accounting Pronouncements

3. TRADE AND OTHER RECEIVABLES (Tables)

3 Months Ended

Jul. 31, 2015

Receivables [Abstract]

Trade and other receivables

	July 31, 2015		April 30, 2015
Trade receivables⁽¹⁾	$	1,417,000	$	3,423,000
Other receivables, net		388,000		390,000
Trade and other receivables, net	$	1,805,000	$	3,813,000

______________

(1)

Represents amounts billed for contract manufacturing services provided by Avid.

4. PROPERTY AND EQUIPMENT (Tables)

3 Months Ended

Jul. 31, 2015

Property, Plant and Equipment [Abstract]

PROPERTY AND EQUIPMENT

	July 31, 2015			April 30, 2015
Leasehold improvements	$	1,564,000		$	1,538,000
Laboratory equipment		6,112,000			5,965,000
Furniture, fixtures, office equipment and software		4,023,000			3,991,000
Construction-in-progress		15,119,000			11,819,000
		26,818,000			23,313,000
Less accumulated depreciation and amortization		(8,423,000	)		(8,189,000	)
Property and equipment, net	$	18,395,000		$	15,124,000

7. EQUITY COMPENSATION PLANS (Tables)

3 Months Ended

Jul. 31, 2015

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Schedule of stock option transaction activity

Stock Options	Shares			Weighted Average Exercisable Price
Outstanding, May 1, 2015		20,708,672			$ 1.54
Granted		3,523,911			$ 1.31
Exercised		(99,091	)		$ 0.94
Canceled or expired		(266,239	)		$ 1.70
Outstanding, July 31, 2015		23,867,253			$ 1.51

Share-based compensation expense

	Three Months Ended July 31,
	2015		2014
Cost of contract manufacturing	$	13,000	$	24,000
Research and development		471,000		743,000
Selling, general and administrative		699,000		1,009,000
Total share-based compensation expense	$	1,183,000	$	1,776,000

Share-based compensation from:
Stock options	$	1,124,000	$	1,697,000
Employee stock purchase plan		59,000		79,000
	$	1,183,000	$	1,776,000

9. SEGMENT REPORTING (Tables)

3 Months Ended

Jul. 31, 2015

Segment Reporting [Abstract]

Segment information

	Three Months Ended July 31,
	2015			2014

Contract manufacturing services revenue	$	9,379,000		$	5,496,000
Cost of contract manufacturing services		4,608,000			3,583,000
Gross profit		4,771,000			1,913,000

Revenue from products in research and development		292,000			–
Research and development expense		(13,918,000	)		(10,201,000	)
Selling, general and administrative expense		(4,899,000	)		(4,883,000	)
Interest and other income		31,000			42,000
Net loss	$	(13,723,000	)	$	(13,129,000	)

Customer Revenue

	Three Months Ended July 31,
	2015		2014

Halozyme Therapeutics, Inc.		84%		100%
Customer A		15%		–
Other customers		1%		–
Total		100%		100%

Long-lived assets

	July 31, 2015		April 30, 2015
Long-lived Assets, net:
Contract manufacturing services	$	16,140,000	$	12,800,000
Products in research and development		2,255,000		2,324,000
Total	$	18,395,000	$	15,124,000

- Definition

Tabular disclosure of the profit or loss and total assets for each reportable segment. An entity discloses certain information on each reportable segment if the amounts (a) are included in the measure of segment profit or loss reviewed by the chief operating decision maker or (b) are otherwise regularly provided to the chief operating decision maker, even if not included in that measure of segment profit or loss.

+ References+ Details

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) (USD $)	1 Months Ended	3 Months Ended
	Sep. 09, 2015 Common Stock	Jul. 31, 2015 Common Stock	Jul. 31, 2015 Options ESPP Warrants	Jul. 31, 2014 Options ESPP Warrants	Jul. 31, 2015 Options and Warrants	Jul. 31, 2014 Options and Warrants	Jul. 31, 2015 Series E Preferred Stock [Member]	Jul. 31, 2014 Series E Preferred Stock [Member]
Gross proceeds from issuance of equity	$ 2,182,000	$ 10,166,000
Amounts Remaining Under Shelf Agreements	$ 148,199,000
Antidilutive shares excluded from calculation of weighted average diluted shares outstanding			2,834,924	5,026,166	15,893,000	4,885,058	13,237,860	8,159,545

- Definition

Securities (including those issuable pursuant to contingent stock agreements) that could potentially dilute basic earnings per share (EPS) or earnings per unit (EPU) in the future that were not included in the computation of diluted EPS or EPU because to do so would increase EPS or EPU amounts or decrease loss per share or unit amounts for the period presented.

+ References+ Details

3. TRADE AND OTHER RECEIVABLES (Details) (USD $)	Jul. 31, 2015	Apr. 30, 2015
Receivables [Abstract]
Trade receivables	$ 1,417,000	$ 3,423,000
Other receivables, net	388,000	390,000
Trade and other receivables, net	$ 1,805,000	$ 3,813,000

4. PROPERTY AND EQUIPMENT (Details) (USD $)	Jul. 31, 2015	Apr. 30, 2015
Property, Plant and Equipment [Abstract]
Leasehold improvements	$ 1,564,000	$ 1,538,000
Laboratory equipment	6,112,000	5,965,000
Furniture, fixtures, office equipment and software	4,023,000	3,991,000
Construction-in-progress	15,119,000	11,819,000
Property, gross	26,818,000	23,313,000
Less accumulated depreciation and amortization	(8,423,000)	(8,189,000)
Property and equipment, net	$ 18,395,000	$ 15,124,000

5. INVENTORIES (Details) (USD $)	Jul. 31, 2015	Apr. 30, 2015
Inventory Disclosure [Abstract]
Raw materials	$ 6,176,000	$ 3,821,000
Work-in-process	4,281,000	3,533,000
Total inventories	$ 10,457,000	$ 7,354,000

6. STOCKHOLDERS' EQUITY (Details Narrative) (USD $)	3 Months Ended
6. STOCKHOLDERS' EQUITY (Details Narrative) (USD $)	Jul. 31, 2015	Jul. 31, 2014
Cash dividend declared, per share	$ 0.65625
Cash dividend paid	$ 1,033,000	$ 771,000
Series E Preferred Stock [Member]
Shares reserved for future issuance	45,668,156
Aggregate gross proceeds available under agreement	$ 10,795,000
Stock Incentive Plans
Shares reserved for future issuance	24,721,484
Employee Stock Purchase Plan
Shares reserved for future issuance	2,443,056
Warrants
Shares reserved for future issuance	273,280

7. EQUITY COMPENSATION PLANS (Details - Option activity) (USD $)	3 Months Ended
	Jul. 31, 2015
Number of Options
Number of Options Outstanding, Beginning	20,708,672
Number of Options Granted	3,523,911
Number of Options Exercised	(99,091)
Number of Options Cancelled or Expired	(266,239)
Number of Options Outstanding, Ending	23,867,253
Weighted Average Exercise Price
Weighted Average Exercise Price Outstanding, Beginning	$ 1.54
Weighted Average Exercise Price Granted	$ 1.31
Weighted Average Exercise Price Exercised	$ 0.94
Weighted Average Exercise Price Canceled	$ 1.70
Weighted Average Exercise Price Outstanding, Ending	$ 1.51

7. EQUITY COMPENSATION PLANS (Details Narrative) (USD $)	3 Months Ended
	Jul. 31, 2015
Employees
Unrecognized compensation cost	$ 5,946,000
Unrecognized cost amortization period	1 year 7 months 17 days
Non-Employees
Unrecognized compensation cost	$ 130,000
Unrecognized cost amortization period	11 months 12 days
2010 ESPP
Shares authorized under plan	5,000,000
Shares available to purchase	2,443,056
Stock Incentive Plans
Shares reserved for future issuance	24,721,484
Stock Options
Shares reserved for future issuance	23,867,253
Share-based awards
Shares reserved for future issuance	854,231

8. WARRANTS (Details Narrative) (USD $)	3 Months Ended
8. WARRANTS (Details Narrative) (USD $)	Jul. 31, 2015
Warrants and Rights Note Disclosure [Abstract]
Warrants issued	0
Warrants exercised	0
Warrants outstanding	273,280
Warrant exercise price	$ 2.47
Warrants exercisable expiration date	Aug. 30, 2018

9. SEGMENT REPORTING (Details) (USD $)	3 Months Ended
9. SEGMENT REPORTING (Details) (USD $)	Jul. 31, 2015	Jul. 31, 2014
Segment Reporting [Abstract]
Contract manufacturing services revenue	$ 9,379,000	$ 5,496,000
Cost of contract manufacturing services	4,608,000	3,583,000
Gross profit	4,771,000	1,913,000
Revenue from products in research and development	292,000	0
Research and development expense	(13,918,000)	(10,201,000)
Selling, general and administrative expense	(4,899,000)	(4,883,000)
Interest and other income	31,000	42,000
Net loss	$ (13,723,000)	$ (13,129,000)

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References+ Details

- Definition

The aggregate costs incurred (1) in a planned search or critical investigation aimed at discovery of new knowledge with the hope that such knowledge will be useful in developing a new product or service, a new process or technique, or in bringing about a significant improvement to an existing product or process; or (2) to translate research findings or other knowledge into a plan or design for a new product or process or for a significant improvement to an existing product or process whether intended for sale or the entity's use, during the reporting period charged to research and development projects, including the costs of developing computer software up to the point in time of achieving technological feasibility, and costs allocated in accounting for a business combination to in-process projects deemed to have no alternative future use.

+ References+ Details

9. SEGMENT REPORTING (Details - Percentage breakdown)	3 Months Ended
9. SEGMENT REPORTING (Details - Percentage breakdown)	Jul. 31, 2015	Jul. 31, 2014
Customer revenue as a percentage of revenue	100.00%	100.00%
Sales Revenue, Net [Member] \| Halozyme Therapeutics
Customer revenue as a percentage of revenue	84.00%	100.00%
Sales Revenue, Net [Member] \| Customer A
Customer revenue as a percentage of revenue	15.00%	0.00%
Sales Revenue, Net [Member] \| Other Customers
Customer revenue as a percentage of revenue	1.00%	0.00%

9. SEGMENT REPORTING (Details - Long lived assets) (USD $)	Jul. 31, 2015	Apr. 30, 2015
Long-lived assets	$ 18,395,000	$ 15,124,000
Contract Manufacturing Services
Long-lived assets	16,140,000	12,800,000
Products in research and development
Long-lived assets	$ 2,255,000	$ 2,324,000

3. TRADE AND OTHER RECEIVABLES (Details Narrative) (USD $)	Jul. 31, 2015	Apr. 30, 2015
Receivables [Abstract]
Allowance for doubtful accounts	$ 5,000	$ 5,000

4. PROPERTY AND EQUIPMENT (Details Narrative) (USD $)	3 Months Ended
4. PROPERTY AND EQUIPMENT (Details Narrative) (USD $)	Jul. 31, 2015	Jul. 31, 2014
Property, Plant and Equipment [Abstract]
Depreciation and amortization	$ 234,000	$ 277,000

7. EQUITY COMPENSATION PLANS (Details - Share based compensation) (USD $)	3 Months Ended
	Jul. 31, 2015	Jul. 31, 2014
Share based compensation	$ 1,183,000	$ 1,776,000
Cost of contract manufacturing
Share based compensation	13,000	24,000
Research and development
Share based compensation	471,000	743,000
Selling, general and administrative
Share based compensation	699,000	1,009,000
Stock Options
Share based compensation	1,124,000	1,697,000
Employee Stock Purchase Plan
Share based compensation	$ 59,000	$ 79,000