TUSTIN, Calif., Dec 10, 2007 /PRNewswire-FirstCall via COMTEX News Network/ -- 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 financial results for the second quarter of fiscal year 2008 ended October 31, 2007. The company reported a consolidated net loss of $6,207,000, or $0.03 per basic and diluted share, compared to a consolidated net loss of $5,070,000 or $0.03 per basic and diluted share for the same prior year period. The increased net loss primarily reflects increased investments in research and development as the company advanced its clinical programs for bavituximab and Cotara(R).

Total revenues for the current quarter increased to $1,892,000 compared to $684,000 for the comparable quarter last year, and were primarily generated from services provided by Avid Bioservices, the company's wholly owned contract manufacturing subsidiary.

Total costs and expenses increased to $8,445,000 in the second quarter of fiscal year 2008 from $6,084,000 in the same prior year quarter. The increase was primarily related to the increase in the cost of contract manufacturing during the quarter resulting from higher reported revenues from external customers, in addition to an increase in research and development expenses associated with the advancement of the company's clinical and preclinical product candidates.

At October 31, 2007, the company had $26,138,000 in cash and cash equivalents compared to $16,044,000 at fiscal year end April 30, 2007.

"We are very optimistic about the future prospects of the company as we move into the new year. With several Phase II clinical studies either underway or in the process of starting, with Defense Department contract negotiations proceeding nicely and with our research collaborations providing exciting new data on a number of our programs, 2008 is shaping up to be an exciting year for Peregrine," said Steven W. King, president and CEO of Peregrine. "In addition, we believe there are multiple opportunities for turning some of these developments into partnering opportunities that could create significant value for the company. We intend to continue working closely with our bankers and analyst team to promote our story to institutional investors and are optimistic that the combination of delivering on our product development milestones, executing our business development initiatives and continuing to ramp up our investor outreach efforts should result in significant value creation for our stockholders going forward."

Recent Highlights

Bavituximab Anti-Cancer Program: The company achieved a number of clinical and preclinical advancements in the bavituximab cancer program.

    -- Received regulatory approval to begin a new Phase II combination
       therapy trial of bavituximab and docetaxel in patients with metastatic
       breast cancer:  Preparations for patient enrollment are underway.
    -- Filed protocols for two separate Phase II bavituximab combination
       therapy trials in patients with metastatic breast cancer.
    -- A study published in Clinical Cancer Research demonstrated the anti-
       cancer potential of Peregrine's bavituximab combined with radiation in
       animal models of lung cancer, and researchers presented data at the
       Innovative Minds in Prostate Cancer Today (IMPaCT) Conference further
       confirming bavituximab's potential to shrink tumors in animal models of
       resistant prostate tumors.

Bavituximab Anti-Viral Program: The company continued to advance its bavituximab HCV program and presented positive data at a key liver disease meeting.

    -- Dosed first patient in a clinical trial of bavituximab in HCV patients
       co-infected with HIV.
    -- Added The Johns Hopkins Hospital and a private AIDS clinic in Orange
       County, California as additional clinical study sites for the HCV/HIV
       co-infection study.
    -- Presented final results from the Phase I multiple dose HCV trial at the
       prestigious Annual Meeting of the American Association for the Study of
       Liver Disease that showed bavituximab was well tolerated and
       demonstrated encouraging signs of anti-viral activity.

Cotara(R) Glioblastoma Program: The company made significant advancements in moving its Cotara brain cancer program forward.

    -- Initiated patient dosing in a 40-patient Cotara Phase II study in
       patients with glioblastoma multiforme, one of the most deadly forms of
       brain cancer.
    -- Regained operational responsibility for the ongoing Cotara dosimetry
       and dose confirmation clinical study and made progress in advancing the
       trial.

Preclinical Anti-Cancer Programs: Researchers affiliated with Peregrine presented data at scientific conferences highlighting the clinical potential of the company's preclinical pipeline.

    -- Researchers presented data at IBC's 5th Annual International Anti-
       Angiogenesis Conference confirming that a selective, fully human anti-
       VEGF antibody being developed by Peregrine is as effective as
       Avastin(R) in preclinical cancer models.
    -- Researchers presented data at the International Conference on Vascular
       Targeted Therapies in Oncology supporting the anti-cancer potential of
       Peregrine's immunocytokine fusion proteins and the broad anti-cancer
       potential of its anti-PS technology platform.


    Avid Bioservices
    -- Wholly owned manufacturing subsidiary Avid Bioservices signed an
       agreement with ARIUS Research to produce clinical supplies of their
       lead cancer stem cell anti-CD44 antibody.
    -- Avid continued to demonstrate strong revenue performance through the
       second quarter of fiscal year 2008.

Conference Call:

The company will host a conference call today, December 10, 2007 at 11:30 a.m. EST/ 8:30 a.m. PST to discuss its second quarter FY 2008 financial results.

To listen to a live broadcast of the call over the Internet or to review the archived call, please visit: www.peregrineinc.com. The webcast will be archived on Peregrine's website for approximately 30 days.

To listen to the conference call via telephone, please call the following number approximately 10 minutes prior to the scheduled start time and request to join the Peregrine Pharmaceuticals call: 1 (800) 860-2442. A telephonic replay of the conference call will be available starting approximately one hour after the conclusion of the call through December 17, 2007 by calling (877) 344-7529, passcode 382933#.

About Peregrine Pharmaceuticals

Peregrine Pharmaceuticals, Inc. is a biopharmaceutical company with a portfolio of innovative product candidates in clinical trials for the treatment of cancer and hepatitis C virus (HCV) infection. The company is pursuing three separate clinical programs in cancer and HCV infection with its lead product candidates bavituximab and Cotara(R). Peregrine also has in-house manufacturing capabilities through its wholly owned subsidiary Avid Bioservices, Inc. (http://www.avidbio.com), which provides development and bio-manufacturing services for both Peregrine and outside customers. Additional information about Peregrine can be found at www.peregrineinc.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 that the company may experience delays in clinical trial patient enrollment, the risk that Avid's revenue growth may slow or decline, the risk that future protocol submissions may not be approved, the risk that the company may not be able to monetize any of its assets, and the uncertainty as to whether the company will successfully consummate a contract with the Defense Threat Reduction Agency. It is important to note that the company's actual results could differ materially from those in any such forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, uncertainties associated with completing preclinical and clinical trials for our technologies; the early stage of product development; the significant costs to develop our products as all of our products are currently in development, preclinical studies or clinical trials; obtaining additional financing to support our operations and the development of our products; obtaining regulatory approval for our technologies; anticipated timing of regulatory filings and the potential success in gaining regulatory approval and complying with governmental regulations applicable to our business. Our business could be affected by a number of other factors, including the risk factors listed from time to time in the Company's SEC reports including, but not limited to, the annual report on Form 10-K for the year ended April 30, 2007 and the quarterly report on Form 10-Q for the second fiscal quarter ended October 31, 2007. 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.

    Contacts:
    GendeLLindheim BioCom Partners
    Investors                                   Media
    info@peregrineinc.com                       Barbara Lindheim
    (800) 987-8256                              (212) 918-4650


                         -financial tables to follow-


     PEREGRINE PHARMACEUTICALS, INC.

     CONDENSED CONSOLIDATED BALANCE SHEETS

                                                 OCTOBER 31,      APRIL 30,
                                                    2007            2007
                                                  Unaudited
    ASSETS

    CURRENT ASSETS:
    Cash and cash equivalents                   $26,138,000     $16,044,000
    Trade and other receivables                   1,029,000         750,000
    Inventories, net                              2,500,000       1,916,000
    Prepaid expenses and other current assets     1,484,000       1,188,000

     Total current assets                        31,151,000      19,898,000

    PROPERTY:
    Leasehold improvements                          656,000         646,000
    Laboratory equipment                          3,687,000       3,533,000
    Furniture, fixtures and office equipment        905,000         873,000
                                                  5,248,000       5,052,000
    Less accumulated depreciation and
     amortization                                (3,447,000)     (3,212,000)

     Property, net                                1,801,000       1,840,000

    Other assets                                  1,493,000       1,259,000

    TOTAL ASSETS                                $34,445,000     $22,997,000


     PEREGRINE PHARMACEUTICALS, INC.

     CONDENSED CONSOLIDATED BALANCE SHEETS (continued)

                                                  OCTOBER 31,      APRIL 30,
                                                     2007            2007
                                                  Unaudited
    LIABILITIES AND STOCKHOLDERS' EQUITY

    CURRENT LIABILITIES:
    Accounts payable                              $2,455,000     $1,683,000
    Accrued clinical trial site fees                 242,000        228,000
    Accrued legal and accounting fees                277,000        392,000
    Accrued royalties and license fees               189,000        337,000
    Accrued payroll and related costs                972,000        874,000
    Notes payable, current portion                   231,000        379,000
    Capital lease obligation, current portion         17,000         17,000
    Deferred revenue                               1,338,000      1,060,000
    Other current liabilities                      1,207,000        885,000

     Total current liabilities                     6,928,000      5,855,000

    Notes payable, less current portion               42,000        119,000
    Capital lease obligation, less current portion    22,000         30,000
    Deferred license revenue                               -          4,000
    Commitments and contingencies

    STOCKHOLDERS' EQUITY:
    Preferred stock-$.001 par value; authorized
     5,000,000 shares; non-voting; nil shares
     outstanding                                           -              -
    Common stock-$.001 par value; authorized
     325,000,000 shares; outstanding - 226,210,617
     and 196,112,201, respectively                   226,000        196,000
    Additional paid-in capital                   245,750,000    224,453,000
    Accumulated deficit                         (218,523,000)  (207,660,000)

     Total stockholders' equity                   27,453,000     16,989,000

    TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY   $34,445,000    $22,997,000


     PEREGRINE PHARMACEUTICALS, INC.

     CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

                            THREE MONTHS ENDED          SIX MONTHS ENDED
                        October 31,    October 31,  October 31,   October 31,
                           2007           2006          2007         2006
                        Unaudited      Unaudited     Unaudited    Unaudited

    REVENUES:
    Contract
     manufacturing
     revenue           $1,863,000      $636,000     $3,484,000    $1,034,000
    License revenue        29,000        48,000         33,000        71,000
     Total revenues     1,892,000       684,000      3,517,000     1,105,000

    COSTS AND EXPENSES:
    Cost of contract
     manufacturing      1,402,000       494,000      2,583,000     1,024,000
    Research and
     development        5,100,000     3,920,000      8,724,000     7,961,000
    Selling, general
     and
     administrative     1,943,000     1,670,000      3,651,000     3,311,000
     Total costs and
      expenses          8,445,000     6,084,000     14,958,000    12,296,000

    LOSS FROM
     OPERATIONS        (6,553,000)   (5,400,000)   (11,441,000)  (11,191,000)

    OTHER INCOME (EXPENSE):
    Interest and
     other income         353,000       339,000        592,000       688,000
    Interest and
     other expense         (7,000)       (9,000)       (14,000)      (24,000)

    NET LOSS          $(6,207,000)  $(5,070,000)  $(10,863,000) $(10,527,000)

    WEIGHTED AVERAGE
     COMMON SHARES
     OUTSTANDING:
     Basic and
      Diluted         226,210,617   193,793,766    216,141,092   188,950,924

    BASIC AND DILUTED
     LOSS PER COMMON
     SHARE                 $(0.03)       $(0.03)        $(0.05)       $(0.06)

SOURCE Peregrine Pharmaceuticals, Inc.

http://www.peregrineinc.com

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