Dallas, Texas 07/02/2015 (Financialstrend) – Peregrine Pharmaceuticals (NASDAQ:PPHM) has been granted a key European patent for Bavituximab, a lead drug developed to stop immunosuppressant quality in cancer cells. The issued patent also covers antibody drug conjugates as well as diagnostics and imaging constructs.
Upcoming Clinical Study
The patent is an important addition to Peregrine Pharmaceuticals (NASDAQ:PPHM)’s patent portfolio made of more than 140 worldwide issued patents and pending applications. The issuance of the patent according vice president for intellectual property should help in the expansion and enhancement of the company’s intellectual –property portfolio around immune-oncology pipeline.
Bavituximab is currently being tested in phase 3 SUNRISE study as a possible treatment for a patient with non-small cell lung cancer. However, the amount of drama that has already been generated on the clinical trial front should be a point of concern.
Cash Burn Concerns
Peregrine Pharmaceuticals (NASDAQ:PPHM)’s over-reliance on the success of the drug, could turn sour especially on negative results from the ongoing SUNRISE study. The fact that very few companies make it through the Phase 3 studies should be a point of concern even before the company seeks approval from the FDA. The ongoing clinical trials should also be a point of concern for investors as cash burn is expected to be high.
Peregrine Pharmaceuticals (NASDAQ:PPHM) might have a contract with manufacturing subsidiary Avid Bio services that helps regulate how its uses its cash, but that does not give the assurance that the company will remain profitable. The company might be forced to raise cash in open market to cater for the ongoing trials, which could significantly dilute the stock
The company might not have any debt at the moment but shareholders having witnessed a $40 million cash outflow on operating basis over the past 12 months should be worried. Peregrine Pharmaceuticals (NASDAQ:PPHM) had $55.2 million in cash in the recent quarter which means its liquidity levels may be under threat at the current spending rate.