Defense Threat Reduction Agency Halts Contract Negotiations With Peregrine Pharmaceuticals as It Suffers $100 Million Cut in FY 2008 Budget for Its Transformational Medical Technologies Initiative (TMT...( - Agency Confirms Its Continuing Inte...)

- Agency Confirms Its Continuing Interest in Peregrine's Anti-PS Technology

for Biodefense Applications -

TUSTIN, Calif., Dec. 14 /PRNewswire-FirstCall/ -- Peregrine Pharmaceuticals, Inc. (Nasdaq: PPHM), a clinical stage biopharmaceutical company developing monoclonal antibodies for the treatment of cancer and hepatitis C virus (HCV) infection, today announced the sudden termination of its negotiations to finalize a contract award with the Defense Threat Reduction Agency (DTRA) of the U.S. Department of Defense (DOD) as a result of Congressional budget cuts. These cuts dramatically reduced the program funds available for grants from DTRA's Transformational Medical Technologies Initiative in the 2008 fiscal year. Peregrine's proposal to investigate bavituximab and other anti-phosphotidylserine (PS) antibodies as potential therapies for hemorrhagic fever virus had been selected for a tentative contract award under the Transformational Medical Technologies Initiative program. The contract was in late stages of negotiation and was expected to be signed in early 2008. In the recently passed H.R. 3222 - Department of Defense Appropriations Act, 2008, Congress eliminated $100 million in funding for the TMTI program, a major portion of its funding available for these types of projects. These cuts were enacted despite the strenuous opposition of the Bush Administration.*

"We are very disappointed and shocked at this unexpected development," said Paul J. Lytle, CFO of Peregrine. "Just two days ago, government auditors spent almost an entire day at our offices working diligently to complete their third audit needed before this contract award could be finalized. We also had recently been asked by the DTRA to acceler
'/>"/>