Avid Bioservices Inc (CDMO)

[MagShoe]

Life Sciences September 22, 2010

MLV Page 3 of 13

cells, such as those used in ASTM’s autologous adult stem cell approach to treat dilated
cardiomyopathy and chronic limb ischemia, may play an important physiologic and therapeutic role
in a tissues or organ’s response to injury.
Peregrine Pharmaceuticals, Inc. (PPHM)
Peregrine Pharmaceuticals, Inc. provided an update on its government-sponsored research program
focused on the development of its phosphatidylserine-targeting antibody, bavituximab, in the
treatment of viral hemorrhagic fevers (VHF). In brief, the Transformational Medical Technologies
Initiative of the U.S. Department of Defense’s Defense Threat Reduction Agency (TMTI/DTRA)
extended the 2-year base period of its 5-year contract with Peregrine by six months (to March 2011)
to further evaluate bavituximab for this indication. The extension includes an additional $2.4
million in non-dilutive financing and raises the total funding for the base period to $24.7 million.
The potential total value of the 5-year contract, if two 1-year option periods are granted, is $36.3
million. In our view, extension of the base period suggests to us that TMTI/DTRA may have found
some evidence of efficacy with bavituximab in this indication. We expect to learn more when
Peregrine reports the results of some of these studies at an upcoming Biodefense conference, as the
company has announced. We think the results could be presented at the Chemical and Biological
Defense Science & Technology Conference in Orlando, FL on November 15-19, 2010.