What To Look For in Peregrine’s Q2 Earnings

Big Bet on Immunotherapy• Peregrine is developing bavituximab– Phase 3 trial in second-line non-small cell lung cancer.– Fast track designation.– Positive results in phase 2 trials.

Bavituximab• Bavituximab– Targets PS, a highly immunosuppressive molecule.• PS flips to the outside of cancerous cells.

– Protects cancerous cells from the immune system.

– Bavituximab blocks PS’ immunosuppressive signal.• Makes cancer cells susceptible to the immune system.

Bavituximab• Bavituximab phase 2 results– Improved median overall survival.• Dosed alongside docetaxel.• 11.7 months versus 7.3 months on docetaxel alone.• Well tolerated with no significant differences in adverse

events between the trial arms.

Bavituximab• Phase 3 enrollment– Look for an update on enrollment.• Trial began in December 2013.• Planned enrollment of 600 patients.• Estimated primary completion date of December 2016.

Cash burn rate• Cash climbed heading into phase 3.– How quickly is the phase 3 trial drawing down cash?

• Quarterly SG&A of $4.56 million in Q1.• Quarterly R&D of $6.64 million in Q1.• Preferred stock offering brings cash to $79.7 million on February 28th.

Updates on Combinations• Peregrine is launching trials studying bavituximab

alongside other top-selling drugs.

– Alongside paclitaxel in HER2 negative breast cancer.

– Alongside Nexavar in liver cancer.– Alongside carboplatin and pemetrexed in

untreated NSCLC.– In April, initiated phase 1b trial for use alongside

Bristol-Myers Yervoy in advanced melanoma.

Fool-worthy thoughts– Is the second-line NSCLC phase 3 trial enrollment progressing as hoped?– Is the company’s cash position stable or falling?– Are there updates to the combination therapy programs?• PD-1 and CTLA-4 pathways.

Leaked: This coming blockbuster will make every biotech jealous