Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Sanofi SA (ADR) (SNY), Bristol Myers Squibb Co. (BMY): Why Peregrine Pharmaceuticals (PPHM) Earnings Won’t Show Profits

Peregrine Pharmaceuticals (NASDAQ:PPHM) will release its latest quarterly report on Monday, and investors are under no illusions that the company will avoid losing money again this quarter. Their hope, though, is that in the long run, one of the biotech’s treatments will win approval and help finally send Peregrine earnings to profitability.

With its monoclonal antibody treatment and diagnosis method for cancer and other diseases, Peregrine Pharmaceuticals (NASDAQ:PPHM) has the potential to deliver groundbreaking products that could save and extend countless lives. Yet as with any small biotech or pharmaceutical company, the trick is whether Peregrine can actually deliver on its promise. Let’s take an early look at what’s been happening with Peregrine Pharmaceuticals over the past quarter and what we’re likely to see in its quarterly report.

Peregrine Pharmaceuticals (NASDAQ:PPHM)

Stats on Peregrine Pharmaceuticals

Analyst EPS Estimate ($0.05)
Year-Ago EPS ($0.07)
Revenue Estimate $4.75 million
Change From Year-Ago Revenue 11.7%
Earnings Beats in Past 4 Quarters 3

Source: Yahoo! Finance.

Will Peregrine earnings look better this quarter?

In recent months, analysts have gotten a little less optimistic in their long-run views on Peregrine Pharmaceuticals (NASDAQ:PPHM) earnings. They haven’t changed their July quarter loss estimates, but they’ve widened their loss projections for the current and next fiscal years by $0.04 per share each. The stock has performed even worse, falling 20% since early June.

One major problem that Peregrine Pharmaceuticals (NASDAQ:PPHM) has had is that its study data have been inconsistent at best. News earlier this year that Peregrine got FDA approval to start its bavituximab phase 3 trial for non-small-cell lung cancer got a hugely positive response. Yet one reason for that response is that after facing controversy over contradictory phase 2 results, investors were relieved that the FDA would even allow Peregrine to begin a phase 3 trial.

Subsequently, that inconsistency has continued, with an initially encouraging report of new data showing a substantial survival increase of 4.4 months for non-small-cell lung cancer patients giving way to later data in late June that showed much less benefit. Peregrine Pharmaceuticals (NASDAQ:PPHM) decided as a result to stop studying one particular treatment combination, leading to a big part of the stock’s recent drop.

Peregrine’s strategy going forward is to start its phase 3 trial by the end of the year, which will compare the combination of bavituximab and Sanofi SA (ADR) (NYSE:SNY)‘s docetaxel against results from using docetaxel alone. Peregrine will also look for other areas in which bavituximab and other phosphatidylserine-targeting antibodies could be effective. A presentation last month at the Cambridge Healthtech Institute’s Immunotherapies Congress highlighted the importance of targeting that specific lipid component on immune response.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.