Avid Bioservices Inc (CDMO)

[pphmtoolong]

Some things about Peregrine are debatable. Some things are not:

1. Peregrine management has been pushing Bavituximab toward commercialization as hard as their, i.e. our, resources permit for years.

2. They managed to save the 2nd Line NSCLC trial despite the major screw up by CSM.

3. They managed to get Phase III trial approval and fast track status for Bavi from the FDA.

4. They have launched a worldwide 160 site Phase III trial. A trial "on track" to complete about 600 patient enrollment this year. Management has told us they expect early look-ins at the data mid-2016 and unblinding of the data by year end 2016.

5. Their confidence in Bavi has prompted them to have it evaluated by Memorial Sloan Kettering.

6. BMY and AstraZeneca are interested in how Bavi interacts with their immune-oncology drugs.

7. Peregrine has managed to fund this process for years. It is dilutive but at least they have managed it without entering into the death spiral pipeline financing I have seen elsewhere.

8. Their Avid arm continues to grow capacity, revenues and profits.

Does the above guarantee success? No. Does it look promising? I like it. I like that the moment of truth is coming in months. The Sunrise trial could prove Bavi's worth or lack of same by mid-2016. At any time less rigorous ongoing trials in other cancers might prompt a risk taking BP to gobble up Peregrine.

One other point of interest, in view of the very advanced development stage Bavituximab has reached, the highly negative opinion we see at this time is puzzling. Why? Don't know. Personally, I like the buy low, sell high explanation is involved.

We will soon see.

GLTA, Especially Bavi-arm Sunrise Patients,

Paul