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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 (TMTI) Program
Date:12/14/2007

ate the timeline for our anti-viral studies and to request additional funds under the TMTI program. It was therefore an unwelcome surprise to learn that Congress has greatly reduced funding for the TMTI program in 2008, and that as a result, this contract award is no longer feasible."

Peregrine has been informed by its contacts at the DTRA that they worked very hard to find alternative sources of funding for this project, but were unable to do so in the required timeframe. Peregrine has been encouraged to re-apply when new funding initiatives become available.

"While we are very disappointed by this sudden turn of events regarding the potential DTRA contract, it has no impact on our continuing clinical efforts including the development of bavituximab for the treatment of HCV infection and cancer," said Steven W. King, president and CEO of Peregrine. "We appreciate the continued interest expressed from the DTRA in our bavituximab program for viral hemorrhagic fevers and hope to be able to pursue other government funding opportunities when they become available. Based on recent data from our collaborators, we are more enthusiastic than ever about the potential of our anti-PS technology platform for the treatment of viral infections, and we see many potential applications in this area."

* In an October 2, 2007 statement to the Senate on the funding priorities

reflected in the Department of Defense Appropriations Act, 2008

(H.R. 3222), the Office of Management and Budget of the Executive Office

of the President wrote: "The Administration strongly opposes the $100

million reduction to the Transformational Medical Technology Initiative

(TMTI). TMTI represents an essential element of our efforts to develop

countermeasures against new biological threats, such as those that would

be engineered in a laboratory or naturally occurring agents, such as

pandemic viruses, that could have a
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SOURCE Peregrine Pharmaceuticals, Inc.
Copyright©2007 PR Newswire.
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