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Peregrine Pharmaceuticals Reports Financial Results for the Second Quarter of Fiscal Year 2009
Date:12/10/2008

since several batches of product that were manufactured during the latter part of the second quarter were not shipped until the third quarter, when these revenues will be recorded.

Total costs and expenses decreased $1,954,000 to $6,491,000 in the second quarter of FY 2009 from $8,445,000 in the same prior year quarter, a decrease of 23%. The decrease was primarily related to planned reductions in R&D costs associated with Peregrine's preclinical programs. These reductions were implemented to maximize the R&D resources available to advance the company's priority clinical product candidates bavituximab and Cotara(R). R&D expenses were $4,301,000 in the second quarter of FY 2009, compared to $5,100,000 in the second quarter of FY 2008. The decrease in R&D expense was achieved despite an increase in clinical activity during the quarter. SG&A expenses were down $416,000 to $1,527,000 for the second quarter of FY 2009 compared to $1,943,000 for the comparable period in FY 2008, a decrease of 21%. This decrease reflects a reduction in SG&A expenses across the board, reflecting the company's focus on stringent management of all discretionary expense categories.

At October 31, 2008, the company had $8,210,000 in cash and cash equivalents. After the close of the quarter, on December 9, 2008, Peregrine entered into an agreement for a non-convertible term loan with an initial tranche of $5 million that will be funded upon closing, with an option to acquire a second $5 million tranche in the future, upon Peregrine's satisfaction of certain additional conditions.

"This past quarter was highlighted by significant milestones for both our bavituximab cancer and anti-viral programs," said Steven W. King, president and CEO of Peregrine. "For the first time, we reported patient enrollment underway in three bavituximab Phase II cancer trials, along with encouraging updated results from o
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SOURCE Peregrine Pharmaceuticals, Inc.
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