Roth Capital Remains Bullish on Peregrine Pharmaceuticals Inc. (PPHM) Following Collaboration with AstraZeneca plc (ADR) (AZN)

On August 24, Peregrine Pharmaceuticals Inc. (NASDAQ:PPHM) announced two new clinical collaborations to expand on the company’s previous immuno-oncology combinations or drugs that fight cancer through working with the body’s immune system. PPHM is a clinical stage biopharmaceutical company that engages in the development and manufacturing of pharmaceutical products for the treatment of cancer and viral infections. The collaborations will be on two pipeline products, the first with AstraZeneca plc (ADR) (NYSE:AZN) on a cancer immunotherapy product called bavituximab, used to treat a range of cancers; and the other with Bristol-Myers Squibb Co. (NYSE:BMY) on a lung study.

The collaboration with AZN on PPHM’s bavituximab is projected to advance PPHM’s SUNRISE phase III clinical study with results expected at the end of 2016. In June, PPHM generated a preclinical data set supporting the immune mechanism action for bavituximab.

The anticipated advancement on the clinical study of bavituximab is noteworthy as the product is widely identified as the primaryrevenue driver of PPHM, with its success or failure having the power to positively or negatively affect the company’s stock. Bavituximab is novel as a pathway inhibitor due to its mechanism of action and molecular target.  The anticipated usage of this product to treat a wide range of cancers is a positive indication for the drug’s clinical trial progress, as it has potential to succeed in some trial aspects in spite of failing in others.

Roth Capital Partners analyst Joseph Pantginis maintained a Buy rating on PPHM on August 24 with a price target of $5. Pantginis supported his rating by citing that the clinical collaborations will broaden the profile of the pharmaceutical trials and continue to drive the stock.  That said, Pantginis clarifies that delays in the clinical trials or negative results could hinder the stock from reaching his $5 target and PPHM’s future funding growth.

On average, Joseph Pantginis has an overall success rate of 31% recommending stocks and an average loss of -7.3% when measured over a one-year horizon and no benchmark. The analyst has rated PPHM a total of 14 times since 2010, earning a 0% success rate recommending the company and a -29.7% return per PPHM recommendation.

Out of three analyst ratings PPHM polled by TipRanks within the past three months, all three are bullish. The average 12-month price target for PPHM is $4.25, marking a 276.11% upside from where the stock last closed.

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