Avid Bioservices, Inc.
Dec 11, 2017

Peregrine Pharmaceuticals Reports Financial Results for Second Quarter of Fiscal Year 2018 and Recent Developments

-- Avid Bioservices Records Revenues of $12.8 Million in the Second Quarter of FY2018 --
             
-- Transition to a Dedicated CDMO Business Nearing Completion --

TUSTIN, Calif., Dec. 11, 2017 (GLOBE NEWSWIRE) -- Peregrine Pharmaceuticals, Inc. (NASDAQ:PPHM) (NASDAQ:PPHMP), a company committed to improving patient lives by manufacturing and delivering high quality biologics, today announced financial results for the second quarter of fiscal year (FY) 2018 ended October 31, 2017, and provided an update on its contract manufacturing operations, and other corporate highlights.

Highlights Since July 31, 2017

"Today, we are pleased to report that the company has made great progress in its transition from an R&D focused business to a dedicated contract development and manufacturing organization (CDMO)," stated Roger J. Lias, Ph.D., president of Avid Bioservices.  "In late November, the company came to an agreement with an investor group, appointing a highly qualified new board of directors consisting of three new independent members from this investor group and one mutually designated independent member in addition to myself and the two independent members previously appointed.  We have now added six highly qualified and independent board members since October. In addition, we are focused on hiring experienced and successful CDMO professionals who are dedicated to revenue growth through the expansion and diversification of Avid's client base, as evidenced by the recently announced hiring of Tracy Kinjerski as vice president of business operations.  We are actively planning to expand Avid's service offerings and enhance our manufacturing infrastructure to ensure that we are offering the highest quality services, and state-of-the-art facilities to our customers.  We are also taking steps to officially change the name of the entire organization to Avid Bioservices, Inc. to formalize this transition.  Lastly, we are in continued discussions with third parties regarding the divestiture of the company's remaining R&D assets and we will keep you apprised on our progress as we advance the process."

Recent Developments at Avid Bioservices

Financial Highlights and Results

More detailed financial information and analysis may be found in Peregrine's Quarterly Report on Form 10-Q, which will be filed with the Securities and Exchange Commission today.

Conference Call

Peregrine will host a conference call and webcast this afternoon, December 11, 2017, at 4:30 PM EST (1:30 PM PST).

To listen to the conference call, please dial (877) 312-5443 or (253) 237-1126 and request the Peregrine Pharmaceuticals conference call. To listen to the live webcast, or access the archived webcast, please visit: http://ir.peregrineinc.com/events.cfm.

About Peregrine Pharmaceuticals, Inc.

Peregrine Pharmaceuticals, Inc. is a company transitioning from an R&D focused business to a pure play contract development and manufacturing organization (CDMO).  Peregrine's in-house CDMO services, including cGMP manufacturing and development capabilities, are provided through its wholly-owned subsidiary Avid Bioservices, Inc. (www.avidbio.com).

Peregrine is pursuing the licensing or sale of its proprietary R&D assets, including its lead immunotherapy candidate, bavituximab, which is currently being evaluated in clinical trials in combination with immune stimulating therapies for the treatment of various cancers.  For more information, please visit www.peregrineinc.com .

About Avid Bioservices, Inc. 

Avid Bioservices, a wholly owned subsidiary of Peregrine Pharmaceuticals, provides a comprehensive range of process development, high quality cGMP clinical and commercial manufacturing services for the biotechnology and biopharmaceutical industries.  With nearly 25 years of experience producing monoclonal antibodies and recombinant proteins in batch, fed-batch and perfusion modes, Avid's services include cGMP clinical and commercial product manufacturing, purification, bulk packaging, stability testing and regulatory strategy, submission and support.  The company also provides a variety of process development activities, including cell line development and optimization, cell culture and feed optimization, analytical methods development and product characterization.  For more information about Avid, please visit www.avidbio.com.

Safe Harbor Statement: Statements in this press release which are not purely historical, including statements regarding Peregrine Pharmaceuticals' intentions, hopes, beliefs, expectations, representations, projections, plans or predictions of the future are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The forward-looking statements involve risks and uncertainties including, but not limited to, the risk the company may experience delays in completing its transition to a dedicated CDMO business, including delays in the its efforts to license or sell its R&D assets, the risk that the company will be unable to license or sell its R&D assets, the risk that the company will be unable to raise additional capital during the remainder of the current fiscal year in order to fund Avid's operations, or that it will be able to raise capital on terms acceptable to the company, the risk that Avid may experience technical difficulties in processing customer orders which could delay delivery of products to customers, revenue recognition and receipt of payment, and the risk that one or more existing Avid customers terminates its contract prior to completion or reduces or delays its demand for manufacturing services.  Our business could be affected by a number of other factors, including the risk factors listed from time to time in our reports filed with the Securities and Exchange Commission including, but not limited to, our annual report on Form 10-K for the fiscal year ended April 30, 2017 as well as any updates to these risk factors filed from time to time in the company's other filings with the Securities and Exchange Commission. The company cautions investors not to place undue reliance on the forward-looking statements contained in this press release. Peregrine Pharmaceuticals, Inc. disclaims any obligation, and does not undertake to update or revise any forward-looking statements in this press release.

PEREGRINE PHARMACEUTICALS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (UNAUDITED)

    
 Three Months Ended
October 31,
 Six Months Ended
October 31,
  2017   2016   2017   2016 
        
Contract manufacturing revenue$  12,782,000  $  23,370,000  $  39,859,000  $  28,979,000 
Cost of contract manufacturing 16,242,000   15,441,000   36,690,000   18,503,000 
  Gross profit (loss)
 (3,460,000)  7,929,000   3,169,000   10,476,000 
        
Operating expenses:       
  Selling, general and administrative 3,867,000   4,984,000   8,080,000   10,044,000 
  Research and development 3,722,000   7,022,000   7,367,000   15,591,000 
  Restructuring charges 1,588,000      1,588,000    
  Total operating expenses  9,177,000   12,006,000   17,035,000   25,635,000 
        
Operating loss (12,637,000)  (4,077,000)  (13,866,000)  (15,159,000)
        
Other income (expense):       
  Interest and other income 14,000   21,000    41,000   46,000 
  Interest and other expense (1,000)     (4,000)   
        
Net loss$  (12,624,000) $  (4,056,000) $(13,829,000) $  (15,113,000)
        
Comprehensive loss$  (12,624,000) $  (4,056,000) $(13,829,000) $  (15,113,000)
        
Series E preferred stock
    accumulated dividends
 (1,442,000)  (1,442,000)  (2,523,000)  (2,477,000)
        
Net loss attributable to
  common stockholders


$
 

  (14,066,000


)
 

$
 

  (5,498,000


)
 

$
 

(16,352,000


)
 

$
 

  (17,590,000


)
        
Weighted average common shares
   outstanding:
 

 
 

 
  

 
  
  Basic and Diluted (1) 45,097,474   34,973,681   44,935,600   34,600,776 
        
Basic and diluted loss per common share (1)$  (0.31) $  (0.16) $  (0.36) $  (0.51)
        
(1)  All share and per share amounts of our common stock for all prior fiscal year periods presented have been retroactively adjusted to reflect the one-for-seven reverse stock split of our issued and outstanding common stock, which took effect on July 10, 2017 (Note 1).
 
 

PEREGRINE PHARMACEUTICALS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

    
 October 31,
2017
 April 30,
2017
  Unaudited  
ASSETS   
Current assets:   
Cash and cash equivalents$  27,727,000  $  46,799,000 
Trade and other receivables 3,508,000   7,742,000 
Inventories 16,518,000   33,099,000 
Prepaid expenses 1,223,000   1,460,000 
Total current assets 48,976,000   89,100,000 
Property and equipment, net 27,148,000   26,515,000 
Restricted cash 1,150,000   1,150,000 
Other assets 1,353,000   1,347,000 
Total assets$  78,627,000  $  118,112,000 
LIABILITIES AND STOCKHOLDERS' EQUITY   
Current liabilities:   
Accounts payable$  2,739,000   $  5,779,000 
Accrued clinical trial and related fees 5,392,000   4,558,000 
Accrued payroll and related costs 4,063,000   6,084,000 
Deferred revenue 7,473,000   28,500,000 
Customer deposits 13,138,000   17,017,000 
Other current liabilities 745,000   993,000 
Total current liabilities 33,550,000   62,931,000 
    
Deferred rent, less current portion 2,171,000   1,599,000 
Commitments and contingencies   
    
Stockholders' equity:   
Preferred stock—$0.001 par value; authorized 5,000,000 shares;
1,647,760 issued and outstanding at October 31, 2017 and April 30,
2017, respectively
  2,000   2,000 
Common stock—$0.001 par value; authorized 500,000,000 shares;
45,172,632 and 44,014,040 issued and outstanding at October 31,
2017 and April 30, 2017, respectively
  

45,000
   44,000 
Additional paid-in capital 594,004,000   590,971,000 
Accumulated deficit (551,145,000)  (537,435,000)
Total stockholders' equity 42,906,000    53,582,000 
Total liabilities and stockholders' equity$  78,627,000   $  118,112,000 


Contacts:

Stephanie Diaz (Investors)

Vida Strategic Partners

415-675-7401

sdiaz@vidasp.com 



Tim Brons (Media)

Vida Strategic Partners

415-675-7402

tbrons@vidasp.com 

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Source: Peregrine Pharmaceuticals Inc.

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