Peregrine Pharmaceuticals (PPHM): 50% Upside on this Biotechnology Stock

Page 1 of 2

The patent cliff has positively impacted the valuations of small biopharmaceutical companies due to their acquisition potential. Peregrine Pharmaceuticals (NASDAQ:PPHM) is currently trading at a 50% discount to my estimated target price of $4. I believe the stock will bounce back as the market has still not adjusted for the recent positive news in company disclosures. It is also a major acquisition candidate and I believe it will be a nice fit for Pfizer Inc. (NYSE:PFE) and Teva Pharmaceutical Industries Ltd (ADR) (NYSE:TEVA).

Peregrine Pharmaceuticals (NASDAQ:PPHM)Peregrine Pharmaceuticals (NASDAQ:PPHM) is a biopharmaceutical company focused on the discovery, development, and commercialization of biopharmaceutical products. The company is focused on the development of monoclonal antibodies for the cure of cancer and viral infections.

Pipeline

The company has an interesting pipeline with 3 primary candidates under various phases of clinical trials.

Bavituximab

This candidate is currently in Phase II clinical trials. The drug is being tested in 3 different randomized Phase II clinical trials for the treatment of NSCLC (Non-small Lung Cancer) and pancreatic cancer. Bavituximab is a monoclonal antibody that targets phosphatidylserine and has demonstrated the ability to treat various oncology indications.

Cotara

It is the lead candidate of Peregrine for their Tumor Necrosis Therapy (TNT) and is in Phase II clinical trials. The interim results have been good as the percentage of patients alive at 6 months, 12 months and 24 months were 73%, 38% and 19%, respectively. Moreover, two patients under treatment with Cotara were still alive after 3 years.

PNG650

The company is also in preclinical trial stage for its tumor imaging candidate PNG650. According to company disclosures it has initiated an open label, single center trial at Washington University. The trials will involve 12 healthy subjects which will be given a single dose of the imaging agent.

Valuations

The stock is currently trading at a 55% discount to its mean sell side target price of $4.50 and at a 30% discount to its lowest sell side target price. The stock has traded as high as $5.50 in the last 52 weeks, a 65% upside to current levels. Peregrine lost almost 50% of its value when the company announced in September that there were major discrepancies in the study for its star drug Bavituximab. I have a $4 target price on the stock based on the sell side estimates and past valuations.

Since then the stock has gained some of its value due to the positive announcement by the company that most of the problems indicated with Phase II trial have been resolved, and the drug is all set to enter phase III. According to the company’s announcement the review has found discrepancies with the 1 mg/kg trial and no problems with the 3mg/kg trial. I believe it is only a matter of time before the stock will move back to its value before the negative announcement on Bavituximab ruined its valuations.

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

5 Retirement Mistakes To Avoid (and Einstein’s Famous Quote)

11 Smartest People in the World

6 Films About the Financial World You Need To Watch (While “The Wolf” is Not Around)

Warren Buffett and Billionaires Are Crazy About These 7 Stocks

The Top 10 States With Fastest Internet Speeds

10 Best Places to Visit in USA in August

Top 10 Cities to Visit Before You Die

Top 10 Genetically Modified Food In the US

15 Highest Grossing Movies Opening Weekend

5 Best Poker Books For Beginners

10 Strategies Hedge Funds Use to Make Huge Returns

Top 10 Fast Food Franchises to Buy

10 Best Places to Visit in Canada

Best Summer Jobs for Teachers

10 Youngest Hedge Fund Billionaires

Top 10 One Hit Wonders of the 90s

Fastest Growing Cities In America

Top 10 U.S. Cities for Freelancers

Top 9 Most Popular Free iPhone Apps

Top 10 Least Expensive Private Business Schools in the US

Top 15 Most Expensive Countries in the World – 2014

Top Businesses to Invest In

Top 5 Things You Might Be Doing Wrong With Your Business

Top 5 Strategic Technology Trends in 2014

Top Rags to Riches Stories

Parenting Behavior That Promotes Future Leaders

Top 5 Mistakes Made by Small Businesses

Top 5 Most Common and Potentially Devastating Financial Blunders

Top 5 Highest Paying Jobs for Web Designers

Top 6 Most Respected Professions that Also Pay Well

Top 5 Pitfalls Investors Should Avoid

Top 6 Lawyers and Policy Makers Under 30

Top 6 New Year’s Resolutions for Entrepreneurs

Top 7 Locations to Check in on Facebook

Top 5 Mistakes made by Rookie eBay Sellers

Top 7 eBook Publishers in 2013

Top 6 Health Industry Trends in 2014

5 Lessons for Entrepreneurs from Seth Godin

Top 5 Success Tips from Jordan Belfort – the Wolf of Wall Street

Best Master’s in Finance Degree Programs

Top 6 Earning Celebrities Over 50

The most expensive sports to play

Top 7 Earning Celebrities Under 25

Best 7 Online Courses to Take: Free Finance MOOCs

Top 6 Bad Habits that Promote Failure

20 Most Valuable Soccer Teams in the World in 2013

12 Most Expensive Countries for Foreign Students

Top 30 Most Influential Women in the World

Top 20 Most Expensive New Year Eve Shows

Top 5 Best Vocational Careers

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!