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Peregrine Pharmaceuticals Inc. Reports Operating Results (10-Q)

December 12, 2011 | About:
Barel Karsan

10qk

18 followers
Peregrine Pharmaceuticals Inc. (PPHM) filed Quarterly Report for the period ended 2011-10-31.

Peregrine Pharmaceuticals Inc. has a market cap of $77.14 million; its shares were traded at around $1.17 with and P/S ratio of 5.72.

Highlight of Business Operations:

At October 31, 2011, we had $18,055,000 in cash and cash equivalents. We have expended substantial funds on the research, development and clinical trials of our product candidates, and funding the operations of Avid. As a result, we have historically experienced negative cash flows from operations since our inception and we expect the negative cash flows from operations to continue for the foreseeable future. Our net losses incurred during the past three fiscal years ended April 30, 2011, 2010 and 2009 amounted to $34,151,000, $14,494,000, and $16,524,000, respectively. Unless and until we are able to generate sufficient revenues from Avid s contract manufacturing services and/or from the sale and/or licensing of our products under development, we expect such losses to continue for the foreseeable future.

Three and Six Months: The increase in contract manufacturing revenue of $527,000 (or 15%) and $4,983,000 (or 108%) during the three and six months ended October 31, 2011, compared to the same periods in the prior year was primarily due to an increase in revenue generated from manufacturing and product development services provided to third party customers, which can be attributed to the timing of services combined with the increase in the number of manufacturing runs completed in the current year compared to the prior year.

Three and Six Months: The increases in cost of contract manufacturing of $715,000 (or 24%) and $2,576,000 (or 62%) during the three and six months ended October 31, 2011 compared to the same periods in the prior year was primarily related to the current year three and six-month period increases in contract manufacturing revenue. Cost of contract manufacturing as a percentage of contract manufacturing revenue fluctuates from quarter to quarter based on the mix of services provided and the gross margins associated with these services. We expect to continue to incur contract manufacturing costs during the remainder of the current fiscal year based on the anticipated completion of customer projects under our current contract manufacturing agreements.

At October 31, 2011, we had $18,055,000 in cash and cash equivalents. We have expended substantial funds on the research, development and clinical trials of our product candidates, and funding the operations of Avid. As a result, we have historically experienced negative cash flows from operations since our inception and we expect the negative cash flows from operations to continue for the foreseeable future. Our net losses incurred during the past three fiscal years ended April 30, 2011, 2010 and 2009 amounted to $34,151,000, $14,494,000, and $16,524,000, respectively. Unless and until we are able to generate sufficient revenues from Avid s contract manufacturing services and/or from the sale and/or licensing of our products under development, we expect such losses to continue for the foreseeable future.

Cash Used In Operating Activities. Cash used in operating activities is primarily driven by changes in our net loss. However, cash used in operating activities generally differs from our reported net loss as a result of non-cash operating expenses or differences in the timing of cash flows as reflected in the changes in operating assets and liabilities. During the six months ended October 31, 2011, cash used in operating activities increased $5,918,000 to $18,652,000 compared to $12,734,000 for the six months ended October 31, 2010. This increase in net cash used in operating activities was primarily due to an increase of $5,531,000 in net loss reported during the current six-month period after taking into consideration non-cash operating expenses combined with a net change in operating assets and payment or reduction of liabilities in the aggregate amount of $387,000. The increase in the net change in operating assets and liabilities was primarily due to a reduction of liabilities associated with deferred revenue and other long-term liabilities, offset by reductions in inventories, receivables, and other non-current assets. The increase in our current six-month period net loss was primarily due to current period increases in cost of contract manufacturing, research and development expenses and general and administrative expenses, offset by a current period increase in total revenues.

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