3-7-14 Qtly CC Transcript, PR (Financials/Devs Q3FY14/qe1-31-14), and the updated Avid Revenues History Table By Quarter (May’06-Current: Total Revs since May’06: $96.0mm/Avid + $24.1mm/Govt + $2.1mm/Lic. = $122.2mm)…
This large post has 3 sections:
I. 3-7-14 Q3/FY14 Qtly. Earnings Conf. Call TRANSCRIPT (q/e 1-31-14)
II. 3-7-14 PPHM Press Release: Q3/FY14 Earnings & Developments
III. Updated Table of Avid Revenues By Quarter (May’06-Current)
…Recall: Peregrine’s FY runs May-Apr, so FY’14 = May’13-Apr’14.
((( Orig. transcript from SeekingAlpha.com [ http://tinyurl.com/kvvq8dr ], with numerous corrections made. )))
Link to webcast replay:
http://ir.peregrineinc.com/events.cfm => http://www.media-server.com/m/p/aoacwx69
FULL TRANSCRIPT…
3-7-2014 Q3 FY’14 Earnings Conf. Call (q/e 1-31-14)
WELCOME & FWD-LOOKING STATEMENTS: Jay Carlson (IR) http://www.peregrineinc.com
Speakers: Steve King, Joe Shan, Robert Garnick, Paul Lytle; Q&A session.
CEO STEVE KING – OPENING COMMENTS:
Thanks to all of you for participating in this morning's call. The last few months at Peregrine have been a very exciting time, with the initiation of the SUNRISE Phase III study, continuing developments on the preclinical front that are pointing to new clinical combinations for bavituximab with exciting potential, successful fundraising efforts, and a continuing solid performance from our manufacturing subsidiary, Avid. I don't want to overuse the word excitement, but these are truly exciting times that have positioned us for success on all fronts.
Since our last quarterly conference call, we have achieved 2 very important milestones for our bavituximab clinical program. These developments included initiation and the start of patient treatment in the SUNRISE Phase III trial, evaluating bavituximab + docetaxel in 2nd-Line NSCLC, and receiving Fast Track designation from the FDA for this lead indication, an important development that can pay significant dividends as we continue to advance the program. Joe Shan & Rob Garnick will provide the details later in the discussion, but I can say that this global Phase III study is going very well on all fronts, and the team has done a great job of positioning it to meet our enrollment goals. While the majority of our Peregrine resources have been directed at the Phase III study, we are also continuing to evaluate new avenues in which to expand the bavituximab clinical program. With exciting clinical data already in hand in breast cancer, this quarter we expect an update from one of our ISTs in Liver cancer, which we believe is another potential future development target.
Our preclinical group, along with our collaborators, have also continued to deliver interesting combination immunotherapy data with other and novel immunomodulatory agents, where we believe, based on the upstream nature of our target, bavituximab has the potential to synergize nicely with other downstream immune checkpoint inhibitors.
We will have the opportunity to share some of these results over the coming month at high-profile scientific venues, including 3 at Keystone Symposia, at the Immunotherapy of Cancer Conference, and at AACR. A full list of these conferences can be found at our website. These results have already supported one of our clinical collaborators initiating the first immunotherapy combination trial with bavituximab in March [IST/UTSW Ph.1B Trial: Bavi+Ipilimumab(Yervoy) vs. Adv.Melanoma, n=24 http://www.clinicaltrials.gov/ct2/show/NCT01984255 ]. Joe again will provide more background. But needless to say, lots of important developments are underway on the product development side of our business.
Biotech product development is a capital-intensive industry. In accordance, over the past few months, we have taken a number of steps to ensure our ability to fund these exciting development programs. In short, as we continue to maintain a balanced financial approach, we are being innovative on the financing front, as evidenced by our recent Series E financing, which was the first of its kind used in the biotech industry. Paul Lytle, our CFO, will highlight these efforts during his discussion of overall company financials.
Business development remains very active throughout our business, both on the Peregrine & Avid fronts. During the last quarterly call, I introduced Stephen Worsley as our VP of Business Dev. Steve has hit the ground running since joining us, and along with his business development reports, have been active on all fronts. While specifics cannot be discussed until deals are culminated, what I can say is that we have seen a high level of interest from potential partners in the bavituximab program as a whole, in collaborating with us to evaluate bavituximab in combination with other novel immunotherapies, in collaborating with us on new areas, and in our contract manufacturing services. With the Phase III study now underway, our main interest in partnering for the bavituximab program would be to allow us to be more aggressive in advancing new clinical indications, namely moving new indications in the later-stage development in areas such as Breast & Liver cancer. And we look forward to updating you as partnerships are brought to fruition over the coming year. As you can see, it has been a very busy past few months, full of important developments. And I will now turn the call over to the team to discuss those developments in more detail, starting with Joe Shan.
JOE SHAN (VP/Clin.&Reg. Affairs) – CLINICAL TRIALS:
To expand a bit on what you just said, the initiation of the SUNRISE pivotal Phase III trial in NSCLC was a major event for us, and one that continues to serve as the main focus for our clinical & regulatory teams. As this pivotal trial will involve over 100 clinical sites worldwide that will enroll close to 600 patients, the continued positive & timely execution of tests is paramount to the success of this trial. To that end, we have accomplished a great deal during this past quarter, as the first clinical sites were initiated and with patients already enrolled and being dosed. We also remain on track with our regulatory and ethics approval timeline for rolling out European & Asian-Pacific sites over the next few months.
Another highlight of the quarter was the receipt of Fast Track Designation from the U.S. FDA for the combination of bavituximab + docetaxel to improve overall survival in patients with previously treated non-squamous, NSCLC compared to docetaxel alone, which is the indication being examined in the SUNRISE trial. This designation facilitates the development and the review of marketing applications for promising drugs like bavituximab, which are intended to treat serious or life-threatening conditions for indications of unmet medical need. [hookup to Rob Garnick failed]…
Besides the start of activities of the SUNRISE trial, our teams also have been working to translate the results demonstrating the immune stimulatory mechanism of bavituximab from the laboratory setting to the clinic. The most recent addition to our clinical trial pipeline comes from these efforts. Last quarter, at the Society for Immunotherapy of Cancer Annual Meeting, we presented very encouraging preclinical data, demonstrating that in a mouse melanoma model, a mouse version of bavituximab combined with an anti-CTLA-4 antibody, resulted in superior tumor growth inhibition compared to either antibody treatments alone, and importantly, with no additional toxicity following multiple treatment doses. Following these data, we anticipate in the near future the initiation of an investigator-sponsored trial of bavituximab in combination with ipilimumab, an approved anti-CTLA-4 antibody marketed as YERVOY, for the treatment of melanoma. As this is a randomized open-label Phase Ib trial, there's a potential for multiple data readouts throughout the course of the trial. As Steve mentioned, we'll continue to aggressively pursue opportunities that emerge from our preclinical immune-oncology program. Over the next few months, we anticipate sharing with you all the additional data that will fuel our clinical program aimed at realizing the full potential of our novel immunotherapy, bavituximab. With that, I'll turn it over to Paul for a review of the financials for the quarter.
CFO Paul Lytle:
There are a few important financial highlights that I'd like to cover this morning regarding our increasing cash position, the recently closed Series E convertible preferred stock transaction, and our operating cash burn rate for the quarter, including revenue guidance from our wholly-owned subsidiary, Avid Bioservices. Let me start with our increasing cash position. In order to advance our ongoing Phase III SUNRISE trial, as well as leverage the findings from our immunotherapy development program, we have taken careful steps to effectively manage our business, while simultaneously enhancing our financial position with our various sources of capital. Our financial position is strong, and we have increased our cash position steadily over each of last 7 quarters to over $63mm at the end of January, and to just under $80mm at the end of February, which includes proceeds we received from the Series E convertible preferred stock transaction. As I mentioned on the last earnings call, our goal has been to seek available sources of capital that are less-dilutive, and we have executed on this strategy by entering into one of the least-dilutive financing vehicles we've seen in the biotech space. In fact, to our knowledge, we are the first biotech company to enter into this innovative financing structure, and it has been well-received by both the investment community and the banking community.
Since this is a new type of financing, let me walk you through the structure in a little more detail and our thinking behind the Series E convertible preferred stock transaction. First, it's important to note that the Series E Preferred Stock trades separately on NASDAQ under the ticker symbol PPHMP. The letter P at the end of the ticker represents Preferred. And during February, we sold a total of 775,000 shares of Series E preferred at the offering price of $25/share in an underwritten public offering. This equates to $19.4mm in gross proceeds. The preferred shares will earn dividends at a rate of 10.5% per annum, and these dividends will be paid quarterly. This is very similar to an interest-bearing term loan, except interest on a term loan is usually paid monthly and would include principal payments as well. The preferred stock transaction represents no immediate dilution, but can be converted into common at a price of $3/share at any time by the investor. This conversion price represented a 75% premium to the closing market price of our common stock on the day prior to pricing. In addition, we included a company-only option to pay off the preferred shares in cash after 3 years, or at any time thereafter, at the same $25 offering price/share. And if we do pay this off in cash, there would be no dilution at all, and this would be very similar to an interest-only term loan for that 3-year period. It is also important to note that we strategically picked a 3-year period to coincide with the anticipated time frame of unblinding the Phase III SUNRISE trial. We are planning for success, and we aligned the terms of this preferred stock transaction accordingly. Another important term is our ability to force conversion of preferred shares into common shares, but only at the company's option that the common share price reaches 130% of the conversion price or $3.90/share for 20 out of 30 trading days, we can force preferred shareholders to convert into common stock. Again, this is at our option only. And last but not least, there is no financial covenants associated with preferred shares like the ones you typically see with a term loan, and there is no maturity date. This is an innovative financing vehicle that is more commonly seen in the real estate and oil & gas industries, and it was made available to us because of our hybrid business model and the revenue we generate from Avid.
Let me switch gears now for a minute to discuss our cash burn from operations. Our net cash burn rate from operations is calculated by taking our net loss from operations and subtracting non-cash expenses like depreciation & share-based compensation. For the qtr-ended Jan. 31, 2014, our cash burn rate was $7.9mm compared to $4.9mm in the same qtr last year. We saw a qtr-over-qtr increase in our cash burn rate due to higher expenses associated with the Phase III trial and certain G&A expenses, combined with lower qtr-over-qtr revenues from Avid. Now turning to revenue, contract mfg. revenue was $3.9mm this qtr and $15.8mm for the current 9-mo. period. Revenue for the 9-mo. period was slightly down compared to the prior-year period, primarily due to the timing of shipments & lot release. But I'd like to reiterate that we are maintaining our initial contract mfg. revenue guidance of $18-22mm for the entire FY'14, and we are on track to hit the higher end of that range. I would also like to emphasize that we have a strong backlog for future services in the amount of $24mm as of Jan. 31, covering services to be completed during the remainder of this FY and into FY’15. We look forward to keeping you updated on our progress, and we will now open the call up to your questions.
Q&A: [17:45 mark]
1. Joe Pantginis – Roth Capital Partners: [ http://www.roth.com & https://roth2.bluematrix.com/docs/pdf/BLUE.pdf ]
JP: First, with the recent financings and the preferred, obviously, you said you have a much stronger balance sheet right now. Would you be able to comment on how this bolstered balance sheet has potentially improved your partnering discussions or helped your partnering discussions because you have this addl. financial leverage?
SK: One of the goals of the financing, obviously, is to ensure that we have the ability to execute on the Phase III study and to bring that all the way across the goal line. Of course, that puts you in a much stronger position with regard to partnering discussions, particularly as they think that you need the capital to complete the study, and they have the upper hand and that's going to work against you in any negotiation. So yes, I think it significantly strengthens our ability, not just executing on Phase III, but all the other areas for business and to continue to explore even broadening potential indications. I think one of the other areas that is exciting that's really heated up is the discussions around just collaborations to combine our agents with some of the other novel immunotherapies, which again, is just further expanding the potential applications of the platform and only adds value to the overall program.
JP: ”I appreciate the early guidance from Joe regarding SUNRISE, and I was just curious going forward what your communications policy would be regarding enrollment or enrollment trends?”
SK: The way we're looking at this is the keys to this global study is its clinical success and also its regulatory success. So far, I think everything is right on track with running the worldwide study, with the regulatory filings ex-US, so we're on track to be able to move forward in multiple territories almost simultaneously. So that's very important, keeping enrollment goals kind of on track. We do have the 2 interim data looks; that will be another indicator, of course. Those are time-to events or event-driven. But certainly, we'll have those 2 things during the course of the study. And if we, obviously, significantly get ahead of schedule or behind schedule, then we will give an update, otherwise, we're just going to execute on the 2-year enrollment and, of course, then I'll talk -- get it done earlier.
JP: ”My last question is, with regard to your ongoing business dev. Activities. You did mention various types, whether it's collaborative types of studies with companies, drug-drug combinations or actual partnerships, and obviously, Avid, new types of deals for the Avid production. But also, just wanted to confirm also that Cotara still remains in the mix?
SK: Yes, absolutely. That's in some of the other areas of collaboration, when we refer to that. So obviously, we have Cotara, we have our imaging program, we have other things that are in preclinical development. I think Steve [Worsley] has done a great job of, as I said in the discussion, of really hitting the ground running on multiple fronts. So, I'm happy with the activity there and the level of interest, and so now it's just a matter of executing and getting these things completed.
2. William R. Quirk for Charles Duncan – Piper Jaffray [http://www.piperjaffray.com – 3-5-13 Initiates PPHM: http://tinyurl.com/bxhntk3 ]
WQ: ”It's William for Charles. Are you guys looking at any subgroups, maybe EGFR status or PD-1 in SUNRISE?”
Joe Shan: Yes, that information can be collected, and we actually have some stratification built into the protocol, but we're not restricting enrollment based on status.
WQ: ”Can you provide a little bit of color on the recent Keystone abstracts, the presentations, the key takeaways from that?
SK: We've got a couple of presentations or a few presentations coming up at the Keystone Symposia. We'll give a little bit more color on those as the presentations are made. Obviously, we have collaborators that are making presentations; we have our own internal presentations. But, it's really continuing to expand on the theme of bavituximab as an immunotherapy, where we see this fits into the space, and some of the broader utility and ways it might be used. I think you'll see that kind of expanded on, on all fronts with regard to the cancer program. And it's a great opportunity to kind of highlight some of the combinability of the drug with these other novel agents. Quickly, back to your previous question. We are, as part of our global program, doing a lot of biomarker work. And so, certainly, as we start, particularly new ISTs or new clinical studies, we'll be able to build in even more types of analysis such as PD-1, such as changes in MDSCs, tumor-associated macrophages and what have you. So, we are really building that into the new studies. That's where we're trying to take advantage of the developments on the scientific side and translate those over to clinical side. So again, those are all fertile areas of data coming out throughout the course, not just 2014, but even beyond.
WQ: ”A quick question on the study with YERVOY. I know it's an IST, but do you guys have any idea about, I don't know, maybe number of patients and we'll probably see data this year?”
Joe Shan: That's a Phase I study, so a couple of dozen patients are planned. But because it's an IST, I think the exact timeline is really out of our control. But we do expect, because it's open-label, that there will be opportunities for some data readouts.
SK: I think some of the primary things we're building into that study is a lot of the translational type data, looking at these changes in immune response and really some things we can build on. And the good news is, since it's open-label, is as we get data from the study, it allows us to really accelerate the movement into new areas as well.
3. Graig C. Suvannavejh (MLV): [ 2-8-10 coverage init: http://tinyurl.com/yech7gz http://www.mlvco.com ]
GS: ”First, I just want to talk about the backlog. I know that you're reiterating guidance, but just from a bigger picture perspective, how should we think about the backlog? I mean, the last quarter, I think, was $21.5mm and now you're reporting $24mm. Is an increase in the backlog, is that a good thing necessarily, or is that not a good thing?”
Paul Lytle: I think the increase in backlog just shows kind of the book of business that has been built and committed to. So any time we can increase that backlog I think it's a positive thing. I mean, as there's more customer demand and addl. mfg. runs that need to be produced for our customers. So it's definitely a good thing, and we're very excited about that.
GS: ”This question just has to do with thoughts around bavituximab being a checkpoint inhibitor. I was just wondering if there's a way to kind of quickly review the reasons that lead you to that conclusion?
SK: It's really built on a lot of data, not just from Peregrine, but from the field in general of understanding the role that PS plays in signaling the immune system. When people hear we're targeting PS, and that it's not really on the radar screen of a lot of people thinking about immunotherapy. But when you think about some of the molecules that are involved as PS receptors, there's TIM-1, TIM-3; so really some other household names in kind of the immune stimulation forefronts are actually involved with PS binding. I think as we get further along, more of that data will start to come out. I think it particularly has to do with some of the combinations, because, I think, what's now known very well is that PS is not just there, it's a signaling molecule, and it really does induce these changes in the immune system. And whether you call it an immune checkpoint inhibitor, an accelerator, I mean there's all kind of ways that you can refer to it, but the bottom line is, this has really been shown through many publications to be actively involved in modulating the immune system, and this is one of the basic control points for the body not eliciting responses to self-antigens in cases such as when cells just simply die. So that's the reason we feel strongly to kind of consider that category. How you refer to it, I think, is somewhat irrelevant to the fact that it does play a key role in modulating the immune system.
GS: ”This question has to do with the competitive landscape which is very dynamic here in lung cancer, and I was just wondering if you could provide your thoughts on the recent Lilly Ph.3 data, and how that changes or maybe that doesn't change your view for the competitive landscape and where you think bavituximab can kind of be positioned relative to kind of what's happening?
Joe Shan: I don't think it changes our position for bavituximab at all. These are totally different pathways. Bavituximab is an immune-modulating drug, and this not necessarily mutually exclusive with other approaches like the Lilly VEGF agonist. We’ve said all along, bavituximab has the potential to be combined with a variety of different drugs that, in the future, may be interesting to explore. Rob, do you have any comments on the landscape and how our data to date kind of fits in?
Robert Garnick: I agree with Joe. I mean, bavituximab really represents a unique opportunity, and I don't think you can draw any conclusions from failed Phase III trials from other companies' products because basically, a lot of drugs were taken into Phase III, basically, on much less compelling data than we were able to achieve with bavituximab. So, I think we're actually very well-poised, based on our data, to see potentially a very successful Phase III trial. And again, I wouldn't draw any conclusions on other people's trials. We're really in a very good position because based on our data - we've just recently achieved global regulatory approvals for going into Phase III based on the strength of the data - the total data package that we presented. So, I think that's quite a testimony to the data package that we've been able to achieve so far. And of course, we'll see how everything progresses during the SUNRISE trial, which now is ready to go. So back over to you, Joe.
4. George Zavoico (H.C. Wainwright – formerly with MLV):
GZ: ”Paul, I guess this 1st question is directed towards you regarding the recent raise and the linkage of that raise to the end of SUNRISE & Avid. You mentioned Avid was an important aspect of being able to get the deal done because of the revenue generation from there. So you now have $80mm. And I imagine, how did you chart the expenses for the trials, the potential Avid revenue to come to that 3-year time point? Do you expect to need to raise money again before you get to that point? How much is the SUNRISE going to cost? And, because you'd mentioned this before about Avid, expanding the capability of Avid, and this speaks to the backlog as well. Are you going to use some of those funds to expand the footprint of your Avid business?”
Paul Lytle: Just to give you just an overall overview here, George, the 3-year timeframe is really the timeframe that we selected for paying off that preferred stock in cash, giving us the ability to do that. And that was to coincide with the timing of unblinding the trial. So we're looking at a 24-mo. enrollment period, and then about a 12-mo. follow-up period, in which by the time we unblind this trial, we would have the ability to pay off that loan or to pay off that preferred stock transaction, basically, at our option. As Steve mentioned earlier, as you know, biotech is capital-intensive, and this really bolsters our cash position, but I can't say that we won't need addl. capital to run the Phase III and to complete the Phase III. Obviously, you're looking at partnering opportunities and bolstering Avid's business opportunities that are going to be also key for us, which would minimize future dilution from that standpoint. So yes, we're excited that we've taken an [indiscernible] overhang off the story with regards to the financing overhang. And we have great plans here now and the financial resources to execute properly on the Phase III trial, and we're doing that.
GZ: ”So is expanding Avid and marketing it, trying to gather more customers part of the plan as well?
Paul Lytle: Yes, definitely. We treat Avid as a separate business. It's a business that needs to grow, and our goal is to grow that business. And I think we have some exciting things coming down the pipeline that's going to help us grow that business in addition to what we're doing now for some of our key commercial mfg. customers like Halozyme Therapeutics.
SK: A big part of that also, George, is that in planning for success, we need to be ready for bavituximab commercialization, the ability to produce that material and to be able to execute on that side that doesn't get a lot of attention, but unless you have a mfg. problem, then we'll certainly want to stay out of that area. We want to invest in programs that make sense and will add significant value over the coming next few years. And so whether that be, we may get exciting data from one of these clinical trials or built on the exciting breast cancer data that we already have, and invest in new clinical directions also. So part of how far the money goes is what activities you take on also. But, the bottom line is everything we invest in, we want to be something that can pay very high returns within the next few years.
GZ: ”And that segues into my next question, because, clearly, as a cost-saving measure, it's very efficient to use investigator-sponsored trials [ISTs]. And right now, you're moving into Phase III, really, with a single company-sponsored trial. You just mentioned some exciting results. And obviously, company-sponsored trials add the greatest value to you in terms of being able to keep as much of the upside as possible, getting data before you partner it. Are you leaving some room in your budget to, as you say, if you get some exciting breast cancer results, to actually start another late Phase II or pivotal Phase III trial in another cancer indication?”
SK: I think we're going to leave that open. I mean, it's resource availability that will determine our ability to start those new studies. But absolutely, I mean, there's actually a lot of excitement about the breast cancer data that was presented at ASCO last year, in which we saw 85% tumor response rates in HER2-negative Breast cancer patients, and about half those patients were actually triple negative, and that's a huge area of opportunity from a development standpoint, and also, I think an area that would be very attractive from a market perspective. So, absolutely, we want to let the science and the clinical results guide us into what those next investments should be. That's just an example of one that we have right now, and obviously, with this ongoing study in Liver cancer and the new study in Melanoma, new things may pop up here. Our goal is to build the franchise here, and again, this is where partnering discussions come in as well, because that clearly would be a primary focus there of getting a partner with a mindset that they want to run a broad program, which could include multiple Phase IIIs even, potentially, and that's really level of interest there. If not, we can execute the Phase III and do some other things ourselves. But, we do want to make sure we get the most out of bavituximab and get it in as many hands as possible.
GZ: ”In that regard, you're right, last year was transformative in the sense of you got a much better understanding of how bavituximab works as a checkpoint inhibitor. And at a couple of conferences, it was actually recognized by certain key opinion leaders as being a checkpoint inhibitor. But it's not a typical one; I mean, it's not a protein-protein type, cell-to-cell type receptor-ligand interaction. You've got a lipid as a ligand, a phospholipid as a ligand. How has the educational strategy gone in terms of getting folks to really look at this in a different way, rather than as how bavituximab was positioned before? It sounds like from all the added interest you're getting, you're successful in that regard.”
SK: I think it's been very successful. In fact, I think as you mentioned, we find that we're now included in a lot of the new conferences, a lot of the listings of immunotherapy agents, being picked up in presentations by KOLs. Clearly, the recognition of the potential importance of this as an immunotherapy target, I think, has really picked up. And also, as people begin to put the pieces together, the fact that some of the other molecules they may be more familiar with actually have a PS binding component, and that also then kind of starts to educate people on the fact that, "Okay, well, this has really been part of the discussion all along. It's just we didn't know it by this name." And so I think that that's all been very positive. One of the other aspects, and what I think is exciting, is the fact that as we've been going out and really soliciting good quality investigational sites for the Phase III, there's been a tremendous amount of interest, from very high profile, very good clinical sites and clinicians. What they want to be involved in are exciting new compounds that could be breakthroughs, and we've been extremely happy with the response to being involved in our studies. And that only speaks good things about what we can expect on the enrollment side and what have you.
GZ: ”In terms of this being a very important year for you, obviously it's shaping up to be one. I was wondering about what other guidance you might be looking for? I was looking at your board, for example, and you have folks on your board that are mainly experts in corp. finance & governance, but not so much in terms of mergers, acquisitions, partnering, regulatory, although you don't need regulatory guidance because you've got Rob, and commercialization aspects. Are you looking at all to bolster your board, expand on the expertise there to help you through this next couple of years that's, hopefully, will be very transformative?”
SK: We're always interested in the potential of adding good quality individuals to the board that can add value. We also, of course, have people like Rob on board and other experts in their individual areas of expertise. And so it's not just people, it's companies that are helping us to make decisions and direction, regulatory strategy, clinical development strategy, but we really have world-class people on all aspects, whether it be R&D through the KOLs that we're collaborating with. We have Rob on board who probably knows the regulatory area for biologics better than anybody else, and the same thing on the clinical front and the people we partnered up with. So, I think we try to cover all those areas. Same thing on the business side, is we're not in a bubble here, we do go out and seek the advice of experts, and people who have been successful and we want to follow the models that have worked in the past.
MR. KING’S CLOSING COMMENTS:
First of all, thank you again for participating in today's call. I hope from what you've heard today that you would agree that Peregrine is in a very favorable position and has been exhibiting across the clinical, regulatory, financial and mfg. fronts. We do look very much forward to continuing to advance our important clinical programs with the hope that we can make a real difference in the treatment of cancer patients. So again, thank you very much, and we look forward to updating you as we continue to make advancements.
.
.
= = = = = = = = = = = = = = = = = = = = = = = = = = = = = == = = =
3-7-14 PR: Peregrine Pharmaceuticals Reports Third Quarter Fiscal Year 2014 Financial Results and Recent Developments
• Bavituximab SUNRISE Pivotal Phase III Trial in Second-Line Non-Small Cell Lung Cancer Initiated and Patient Dosing Underway
• Company Receives Fast Track Designation of Bavituximab in Second-Line NSCLC
• Company Strengthens Balance Sheet With $79.7 Million in Cash as of Feb. 28, 2014 as It Continues to Execute on Its Business Strategy
http://ir.peregrineinc.com/releasedetail.cfm?ReleaseID=831244
TUSTIN, 3/7/14: Peregrine Pharmaceuticals, Inc. (NASDAQ: PPHM) (NASDAQ: PPHMP), a biopharmaceutical company focused on the development of first-in-class monoclonal antibodies for the treatment and diagnosis of cancer, today announced financial results for the third quarter of fiscal year (FY) 2014 ended January 31, 2014 and provided an update on its advancing clinical pipeline and other corporate developments.
"We reached a significant milestone this quarter with the initiation of the bavituximab Phase III SUNRISE trial in 2nd-Liine NSCLC while also receiving Fast Track Designation for the same indication," said Steven W. King, President and CEO of Peregrine. "We are also making great strides in advancing new immunotherapy combinations into the clinic with bavituximab, representing novel immunotherapy combinations. We are close to initiating the first of these studies in evaluating bavituximab in combination with ipilimumab [ie, BMS’s “Yervoy”, an anti-CTLA-4] in advanced melanoma patients. We expect that this trial will be the first of many immunotherapy combinations that will allow us to explore the potential of bavituximab to improve the activity of other immunotherapies. Our scientists and collaborators will be presenting at several upcoming scientific conferences and we look forward to sharing additional data supporting this effort."
BAVITUXIMAB ONCOLOGY PROGRAM HIGHLIGHTS
Lead Indication in Second-Line Non-Small Cell Lung Cancer:
• Opened to enrollment and actively dosing patients in the SUNRISE Phase III Trial (Stimulating ImmUne RespoNse thRough BavItuximab in a PhaSE III Lung Cancer Study).
o SUNRISE is a Phase III, global, randomized, double-blind, placebo-controlled clinical trial designed to evaluate the safety, tolerability and efficacy of bavituximab in patients with second-line non-small cell lung cancer (NSCLC). The trial is evaluating bavituximab+docetaxel vs. docetaxel+placebo in approximately 600 patients at clinical sites worldwide. Patients with Stage IIIb/IV non-squamous, NSCLC who have progressed after standard front-line treatment are eligible for enrollment. Patients are being randomized into 1 of 2 treatment arms. All patients are receiving up to six 21-day cycles of docetaxel at 75mg/m2 plus weekly infusions of either bavituximab (3mg/kg) or placebo until progression or toxicity. The primary endpoint of the trial is overall survival. For additional information about the SUNRISE trial visit http://www.sunrisetrial.com or http://ClinicalTrials.gov using Identifier NCT01999673 [ http://www.clinicaltrials.gov/ct2/show/NCT01999673 ].
o During the quarter, the company received Fast Track Designation from the U.S. Food and Drug Administration (FDA) for bavituximab in the potential treatment of second-line NSCLC. The Fast Track programs of the FDA are designed to facilitate the development and expedite the review of new drugs that are intended to treat serious or life-threatening conditions and that demonstrate the potential to address unmet medical needs.
Clinical Data that Supports New Bavituximab Oncology Indications:
• The company is evaluating the best way to build on data from a Phase I clinical study that evaluated bavituximab in combination with paclitaxel in 13 patients with HER2-negative metastatic breast cancer including approximately half of the patients that were "triple negative". The encouraging interim data in patients that received the combination was presented at the 2013 American Society of Clinical Oncology (ASCO) Annual Meeting showed that 85% of patients achieved an objective tumor response, including 15% of patients achieving a complete response measured in accordance with RECIST criteria. Final data from the study is anticipated in 2014.
Exploring Additional Bavituximab Indications through Investigator-Sponsored Trials (IST):
• A Phase I/II IST evaluating bavituximab in combination with sorafenib in up to 48 patients with advanced hepatocellular carcinoma (liver cancer). A presentation of this trial will be made by Adam Yopp, M.D., Assistant Professor of Surgery at the University of Texas Southwestern Medical Center, Dallas, Texas as an oral presentation at the 2014 Society of Surgical Oncology Cancer Symposium on March 13, 2014.
• A Phase Ib IST evaluating bavituximab in combination with carboplatin and pemetrexed in up to 25 patients with previously untreated Stage IV NSCLC.
• A Phase I IST evaluating bavituximab in combination with capecitabine and radiation therapy in up to 18 patients with Stage II or III rectal adenocarcinoma.
BAVITUXIMAB IMMUNOTHERAPY DEVELOPMENT PROGRAM
• Peregrine is exploring the potential to combine bavituximab with other immunotherapies such as those targeting the PD-1 and CTLA-4 pathways and has initiated multiple proof-of-concept studies that could support new immunotherapy combination trials. In advance of this, multiple proof-of-concept preclinical studies are now underway with data anticipated throughout 2014.
PS-TARGETING MOLECULAR IMAGING PROGRAM
The company is exploring the potential of its experimental PS-targeting molecular imaging candidate, 124I-PGN650, in patients with various solid tumor types. This is an open-label, single-center trial with a primary goal of estimating radiation dosimetry in critical and non-critical organs and secondary objectives of tumor imaging and safety.
CORPORATE
The company recently closed an underwritten public offering of 775,000 shares of its 10.50% Series E Convertible Preferred Stock (the "Series E Preferred Stock") at an offering price of $25.00 per share. As a result, Peregrine received gross proceeds of $19,375,000 before deducting underwriting discounts and commissions. The company intends to use the proceeds from the offering for general corporate purposes. The shares are listed on the NASDAQ Capital Market and trade under the symbol "PPHMP".
FINANCIAL RESULTS
"We recently completed an innovative and less dilutive financing with the closing of the Series E Preferred Stock transaction. This transaction further strengthened our balance sheet with close to $80 million in cash and cash equivalents as of February 28, 2014," said Paul Lytle, CFO of Peregrine. "Additionally, we also generated over $3.9 million in non-dilutive contract manufacturing revenue this quarter and we are on track to be on the higher end of our previously stated guidance for the entire FY 2014 of $18 and $22 million."
Total revenues for the third quarter of FY 2014 were $3,885,000, compared to $7,039,000 for the same quarter of the prior fiscal year. This decrease was primarily attributable to lower contract manufacturing revenue generated by Peregrine's biomanufacturing subsidiary Avid Bioservices, which generated contract manufacturing revenue of $3,885,000 for the third quarter of FY 2014, compared to $6,961,000 for the same quarter of the prior fiscal year. The decrease in contract manufacturing revenue was primarily due to the timing of services provided to Avid's third-party customers. Total costs and expenses in the third quarter of FY 2014 were $13,628,000, compared to $12,200,000 in the third quarter of FY 2013. This increase was attributable to current quarter increases in research and development expenses and selling, general and administrative expenses, which were offset by the current quarter decrease in cost of contract manufacturing associated with lower revenues in the current quarter. The increase in research and development expenses for the third quarter FY 2014 compared to the third quarter of FY 2013 was primarily attributable to expenses associated with preparing for the initiation of our Phase III SUNRISE trial combined with an increase in share-based compensation expense (non-cash). The increase in selling, general and administrative expenses for the third quarter FY 2014 compared to the third quarter of FY 2013 was primarily attributable to increases in payroll and related expenses, share-based compensation expense (non-cash) and corporate legal fees.
Peregrine's consolidated net loss was $9,724,000, or $0.06 per share, for the third quarter of FY 2014, compared to a net loss of $4,914,000, or $0.04 per share, for the same quarter of the prior year.
Peregrine reported cash and cash equivalents of $63,177,000 at its quarter ended January 31, 2014 and $79,673,000 at February 28, 2014, including net proceeds from the Series E Preferred Stock transaction, compared to $44,443,000 at its previous quarter ended October 31, 2013.
More detailed financial information and analysis may be found in Peregrine's Quarterly Report on Form 10-Q, which will be filed with the Securities and Exchange Commission today. [ http://www.sec.gov/Archives/edgar/data/704562/000101968714000753/pphm_10q-013114.htm ]
Conference Call
Peregrine will host a conference call and webcast this morning, March 7, 2014, at 11:00 AM ET (8:00 AM PT). To listen to the conference call, please dial (877) 312-5443 or (253) 237-1126 and request the Peregrine Pharmaceuticals conference call. A replay of the call will be available starting approximately 2 hours after the conclusion of the call through March 14, 2014 by calling (855) 859-2056, or (404) 537-3406 and using passcode 4248303. To listen to the live webcast, or access the archived webcast, please visit: http://ir.peregrineinc.com/events.cfm.
About Peregrine Pharmaceuticals, Inc.
Peregrine Pharmaceuticals, Inc. is a biopharmaceutical company with a pipeline of novel drug candidates in clinical trials for the treatment and diagnosis of cancer. The company is developing multiple clinical programs in cancer with its lead immunotherapy candidate bavituximab while seeking a partner to further advance its novel brain cancer agent Cotara®. Peregrine also has in-house cGMP manufacturing capabilities through its wholly-owned subsidiary Avid Bioservices, Inc. ( http://www.avidbio.com ), which provides development and biomanufacturing services for both Peregrine and third-party customers. Additional information about Peregrine can be found at http://www.peregrineinc.com .
Safe Harbor *snip*
PEREGRINE PHARMACEUTICALS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
Three Months Ended
January 31, Nine Months Ended
January 31,
2014 2013 2014 2013
Unaudited Unaudited Unaudited Unaudited
REVENUES:
Contract manufacturing revenue $ 3,885,000 $ 6,961,000 $ 15,820,000 $ 17,157,000
License revenue - 78,000 107,000 272,000
Total revenues 3,885,000 7,039,000 15,927,000 17,429,000
COSTS AND EXPENSES:
Cost of contract manufacturing 2,416,000 3,651,000 9,281,000 9,378,000
Research and development 6,649,000 5,437,000 18,910,000 18,471,000
Selling, general and administrative 4,563,000 3,112,000 12,913,000 9,469,000
Total costs and expenses 13,628,000 12,200,000 41,104,000 37,318,000
LOSS FROM OPERATIONS (9,743,000 ) (5,161,000 ) (25,177,000 ) (19,889,000 )
OTHER INCOME (EXPENSE):
Interest and other income 23,000 255,000 68,000 307,000
Interest and other expense (4,000 ) (8,000 ) (5,000 ) (53,000 )
Loss on early extinguishment of debt - - - (1,696,000 )
NET LOSS $ (9,724,000 ) $ (4,914,000 ) $ (25,114,000 ) $ (21,331,000 )
COMPREHENSIVE LOSS $ (9,724,000 ) $ (4,914,000 ) $ (25,114,000 ) $ (21,331,000 )
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
Basic and Diluted 163,223,767 131,489,994 156,521,874 114,726,569
BASIC AND DILUTED LOSS PER COMMON SHARE $ (0.06 ) $ (0.04 ) $ (0.16 ) $ (0.19 )
PEREGRINE PHARMACEUTICALS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
JANUARY 31,
2014 APRIL 30,
2013
Unaudited
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 63,177,000 $ 35,204,000
Trade and other receivables, net 2,782,000 1,662,000
Inventories 5,224,000 4,339,000
Prepaid expenses and other current assets, net 1,050,000 709,000
Total current assets 72,233,000 41,914,000
Property and equipment, net 2,514,000 2,678,000
Other assets 1,738,000 466,000
TOTAL ASSETS $ 76,485,000 $ 45,058,000
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ 1,879,000 $ 2,821,000
Accrued clinical trial and related fees 1,358,000 930,000
Accrued payroll and related costs 3,309,000 3,582,000
Deferred revenue, current portion 4,329,000 4,171,000
Customer deposits 8,646,000 8,059,000
Other current liabilities 1,228,000 998,000
Total current liabilities 20,749,000 20,561,000
Deferred revenue, less current portion 292,000 292,000
Other long-term liabilities 373,000 445,000
Commitments and contingencies
STOCKHOLDERS' EQUITY:
Preferred stock-$0.001 par value; authorized 5,000,000 shares; non-voting; nil shares outstanding - -
Common stock-$0.001 par value; authorized 325,000,000 shares; outstanding - 176,453,261 and 143,768,946, respectively
176,000
143,000
Additional paid-in capital 447,913,000 391,521,000
Accumulated deficit (393,018,000 ) (367,904,000 )
Total stockholders' equity 55,071,000 23,760,000
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 76,485,000 $ 45,058,000
- - - - - - - - -
[ From 10-Q header: “As of March 3, 2014, there were 176,481,054 shares of issuer’s common stock
Contact: Christopher Keenan or Jay Carlson
Peregrine Pharmaceuticals, Inc. (800) 987-8256 info@peregrineinc.com
- - - - - - - - - - - - - - - - -
Latest 10K 4-30-13 iss. 7-11-13: http://tinyurl.com/p58jcbw PR: http://tinyurl.com/khpokw6 (Cash 4-30-13=$35.2, 6-30-13=$42.6mm)
Latest 10Q 1-31-14 iss. 3-7-14 http://tinyurl.com/pxcjocw PR: http://tinyurl.com/kh9cnrg (Cash 1-31-13=$63.2mm, 2-15-14=$79.7mm)
ALL SEC filings for PPHM: http://tinyurl.com/6d4jw8
.
.
= = = = = = = = = = = = = = = = = = = = = = = = = = = =
Updated PPHM REVS-BY-QTR TABLE, now thru FY14/Q3 (q/e 1-31-14), per the 1-31-14 10-Q ( http://tinyurl.com/pxcjocw ) issued 3-7-14. Deferred-Revs at 1-31-14, going fwd into FY’14/Q4 (fy/e 4-30-14), total $4.3mm, up from the $3.47mm of Deferred-Revs at 10-31-13 that drove into FY’14/Q3.
• Total Revs since May’06: ($96.0mm/Avid + $24.1mm/Govt + $2.1mm/Lic.) = $122.2mm
• Avid’s Gross-Profit over last 3 qtrs: $6.5mm on revs of $15.8mm (GM% = 41%)
==> Recall, Avid Rev$ from Gov’t DTRA Contract work (6/30/08 – 4/15/11, totaling $24.15mm), went into GOVT-REVS, not AVID-REVS, in the Financials.
Avid’s website: http://www.avidbio.com
AVID PROFITABILITY (GROSS*) BY QTR:
QTR Avid-Rev$ CostofMfg$ Gross-Profit$ GM%
FY13Q1 7-31-12 4,135,000 2,024,000 2,111,000 51%
FY13Q2 10-31-12 6,061,000 3,703,000 2,358,000 39%
FY13Q3 1-31-13 6,961,000 3,651,000 3,310,000 47%
FY13Q4 4-30-13 4,176,000 3,217,000 959,000 23%
FY13 TOTAL: 21,333,000 12,595,000 8,738,000 41%
FY14Q1 7-31-13 4,581,000 2,670,000 1,911,000 42%
FY14Q2 10-31-13 7,354,000 4,195,000 3,159,000 43%
FY14Q3 1-31-14 3,885,000 2,416,000 1,469,000 38%
*Avid Net-Profit (ie, incl. Selling, G&A) not split out from PPHM-Corp. in the financials.
.
PPHM REVENUES (in thousands) DEFERRED
-------REVENUES------- REVENUES INVEN-
Quarter Avid Govt Lic. TOTAL Avid Govt TORIES
FY07Q1 7-31-06 398 0 23 421 317 0 971
FY07Q2 10-31-06 636 0 48 684 1388 0 1899
FY07Q3 1-31-07 347 0 16 363 2202 0 1325
FY07Q4 4-30-07 2111 0 129 2240 1060 0 1916
FY08Q1 7-31-07 1621 0 4 1625 1820 0 2363
FY08Q2 10-31-07 1863 0 29 1892 1338 0 3500
FY08Q3 1-31-08 1662 0 13 1675 1434 0 2394
FY08Q4 4-30-08 751 0 150 901 2196 0 2900
FY09Q1 7-31-08 1193 324 0 1517 4021 980 4628
FY09Q2 10-31-08 983 958 0 1941 6472 1701 6700
FY09Q3 1-31-09 5778 1048 0 6826 4805 3262 5547
FY09Q4 4-30-09 5009 2683 175 7867 3776 3871 4707
FY10Q1 7-31-09 2070 4671 9 6750 5755 2332 6177
FY10Q2 10-31-09 5308 1510 78 6896 4260 3989 5850
FY10Q3 1-31-10 2945 6854 78 9877 3052 76 3861
FY10Q4 4-30-10 2881 1461 78 4420 2406 78 3123
FY11Q1 7-31-10 983 2111 115 3209 3719 47 4692
FY11Q2 10-31-10 3627 966 78 4671 2447 35 3555
FY11Q3 1-31-11 1922 882 79 2883 4300 40 3915
FY11Q4 4-30-11 1970 681 78 2729 5617 0 5284
FY12Q1 7-31-11 5439 0 216 5655 4145 0 4481
FY12Q2 10-31-11 4154 0 78 4232 2012 0 3178
FY12Q3 1-31-12 3203 0 78 3281 2552 0 2722
FY12Q4 4-30-12 1987 0 78 2065 3651 0 3611
FY13Q1 7-31-12 4135 0 116 4251 6056 0 5744
FY13Q2 10-31-12 6061 0 78 6139 6221 0 5426
FY13Q3 1-31-13 6961 0 78 7039 5061 0 4635
FY13Q4 4-30-13 4176 0 78 4254 4171 0 4339
FY14Q1 7-31-13 4581 0 107 4688 4164 0 5679
FY14Q2 10-31-13 7354 0 0 7354 3468 0 4033
FY14Q3 1-31-14 3885 0 0 3885 4329 0 5224
Totals: 95994 24149 2087 122230 <=since5/1/2006
.
TOTAL REV’s BY YEAR (Avid+Gov’t+Lic):
FY04 4-30-04 3,314 …Avid(CMO)= 3,039 (Avid-Revs don’t incl. Govt-SVCS)
FY05 4-30-05 4,959 …Avid(CMO)= 4,684
FY06 4-30-06 3,193 …Avid(CMO)= 3,005
FY07 4-30-07 3,708 …Avid(CMO)= 3,492
FY08 4-30-08 6,093 …Avid(CMO)= 5,897
FY09 4-30-09 18,151 …Avid(CMO)= 12,963
FY10 4-30-10 27,943 …Avid(CMO)= 13,204
FY11 4-30-11 13,492 …Avid(CMO)= 8,502
FY12 4-30-12 15,233 …Avid(CMO)= 14,783
FY13 4-30-13 21,683 …Avid(CMO)= 21,333
...Total Gov’t Revs from 7-2008 inception thru FY11Q4(Apr’11): $24.15mm
.
AVID “Total Services”:
AVID OUTPUT$ 3rd-PARTY + PEREGRINE = TOTAL-OUTPUT$
FY09 4-30-09 13mm 10mm $23mm #
FY10 4-30-10 13mm 17mm $30mm #
FY11 4-30-11 9mm 11mm $20mm @
FY12 4-30-12 15mm 11mm $26mm @
FY13 4-30-13 21mm ~10mm ~$31mm ^
LTM ended 1/2010 3rd/$15.3mm + Govt/$8.3mm + PPHM/$8.8mm = $32.4mm *
@SKing 3-18-2013 RothOC/DanaPT (Slide21) http://tinyurl.com/cebtwen
#SKing 7-12-2012 JMP/NYC Conf. (Slide27) http://tinyurl.com/csdclwb
*SKing 3-17-2010 RothOC/DanaPT Conf. (Slide18) http://tinyurl.com/ye9v7jq
^PLytle 7-11-2013 Qtly-CC “Avid did ~$10mm in equivalent services for Peregrine in FY13, which doesn’t get reflected into the fin. statements, it's eliminated in consolidation.”
.
PPHM’S QTLY. NET LOSS BY QTR:
FY08Q1 7-31-07 4,656,000
FY08Q2 10-31-07 6,207,000
FY08Q3 1-31-08 6,154,000
FY08Q4 4-30-08 6,159,000
FY09Q1 7-31-08 5,086,000
FY09Q2 10-31-08 4,497,000
FY09Q3 1-31-09 3,332,000
FY09Q4 4-30-09 3,609,000
FY10Q1 7-31-09 2,428,000
FY10Q2 10-31-09 2,787,000
FY10Q3 1-31-10 1,538,000
FY10Q4 4-30-10 7,741,000
FY11Q1 7-31-10 7,695,000
FY11Q2 10-31-10 7,513,000
FY11Q3 1-31-11 8,929,000
FY11Q4 4-30-11 10,014,000
FY12Q1 7-31-11 8,092,000
FY12Q2 10-31-11 12,055,000
FY12Q3 1-31-12 11,090,000
FY12Q4 4-30-12 10,882,000
FY13Q1 7-31-12 7,664,000
FY13Q2 10-31-12 8,753,000
FY13Q3 1-31-13 4,914,000
FY13Q4 4-30-13 8,449,000
FY14Q1 7-31-13 7,600,000
FY14Q2 10-31-13 7,790,000
FY14Q3 1-31-14 9,724,000
.
= = = = = = =
OPER. CASH BURNS* BY QTR(FROM THE 10-Q/K’S):
FY10Q1 7-31-09 2,024,000 (from 10Q pg.25)
FY10Q2 10-31-09 2,351,000 (Q1+Q2: 4,375,000 pg.28)
FY10Q3 1-31-10 1,158,000 (Q1+Q2+Q3: 5,533,000 pg.30)
FY10Q4 4-30-10 6,375,000 (FY’10: 11,908,000 10K pg.58)
FY11Q1 7-31-10 6,567,000 (from 10Q pg.24)
FY11Q2 10-31-10 6,167,000 (Q1+Q2: $12,734,000 pg.25)
FY11Q3 1-31-11 7,736,000 (Q1+Q2+Q3: $20,470,000 pg.26)
FY11Q4 4-30-11 8,961,000 (FY’11: 29,431,000 10K pg.54)
FY12Q1 7-31-11 6,984,000 (from 10Q pg.25)
FY12Q2 10-31-11 11,668,000 (Q1+Q2: 18,652,000 pg.25)
FY12Q3 1-31-12 8,490,000 (Q1+Q2+Q3: 27,142,000 pg.25)
FY12Q4 4-30-12 11,265,000 (FY’12: 38,407,000 10K pg.55)
FY13Q1 7-31-12 6,742,000 (from 10Q pg.21)
FY13Q2 10-31-12 6,162,000 (Q1+Q2: 12,904,000 pg.23)
FY13Q3 1-31-13 3,597,000 (Q1+Q2+Q3: 16,501,000 pg.23)
FY13Q4 4-30-13 7,053,000 (FY’13: 23,554,000 10K pg.60)
FY14Q1 7-31-13 5,750,000 (from 10Q pg.23)
FY14Q2 10-31-13 5,834,000 (Q1+Q2: 11,584,000 10Q pg.24)
FY14Q3 1-31-14 7,875,000 (Q1+Q2+Q3: 19,459,000 10Q pg.26)
FY’09 total Op-Burn: $14,715,000
FY’10 total Op-Burn: $11,908,000
FY’11 total Op-Burn: $29,431,000
FY’12 total Op-Burn: $38,407,000
FY’13 total Op-Burn: $23,554,000
*The 10-Q’s define OPER.BURN as, ”Net cash used in operating activities before chgs. in operating assets & liabilities”.
The 7-21-2001 10Q explains OP.BURN very nicely:
“RESULTS OF OPERATIONS. Before we discuss the Company's total expenses (cash & non-cash expenses), we would like to discuss the Company's operational burn rate (cash expenses used in operations, net of interest and other income) for q/e July 31, 2001 compared to the same period in the prior year. The operational burn rate is calculated by taking the net income (loss) from operations and subtracting all non-cash items, such as the recognition of deferred license revenue, depreciation and amortization and stock-based compensation expense.”
.
- - - - - - - - PPHM’s Fiscal Qtr’s (FY runs May – April):
FY’10-Q3 = q/e 1-31-10 – rep. 3-11-10 Thu (B4 mkt)
FY’10-Q4 = q/e 4-30-10 – rep. 7-14-10 Wed (after mkt)
FY’11-Q1 = q/e 7-31-10 – rep. 9-9-10 Thu (after mkt)
FY’11-Q2 = q/e 10-31-10 – rep. 12-9-10 Thu (after mkt)
FY’11-Q3 = q/e 1-31-10 – rep. 3-11-11 Fri (after mkt)
FY’11-Q4 = q/e 4-30-11 – rep. 7-14-11 Thu (after mkt)
FY’12-Q1 = q/e 7-31-11 – rep. 9-9-11 Fri (B4 mkt)
FY’12-Q2 = q/e 10-31-11 – rep. 12-12-11 Mon (after mkt)
FY’12-Q3 = q/e 1-31-12 – rep. 3-9-12 Fri (after mkt)
FY’12-Q4 = q/e 4-30-12 – rep. 7-16-12 Mon (after mkt)
FY’13-Q1 = q/e 7-31-12 – rep. 9-10-12 Mon (B4 mkt)
FY’13-Q2 = q/e 10-31-12 – rep. 12-10-12 Mon (after mkt)
FY’13-Q3 = q/e 1-31-13 – rep. 3-12-13 Tue (after mkt)
FY’13-Q4 = q/e 4-30-13 – rep. 7-11-13 Thu (after mkt)
FY’14-Q1 = q/e 7-31-13 – rep. 9-9-13 Mon (after mkt)
FY’14-Q2 = q/e 10-31-13 – rep. 12-10-13 Tue (after mkt)
FY’14-Q3 = q/e 1-31-14 – rep. 3-7-14 Fri (B4 mkt)
FY’14-Q4 = q/e 4-30-14 – rep. ~7-10-14
= = = = = = = = = = = =
“Going Concern” statement ELIMINATED from 4-30-13 10-K issued 7-11-2013…
2012: 4-30-12 10-K iss. 7-16-12 http://tinyurl.com/79o57b2
Pg.68: “As more fully described in Note 2, the Company’s recurring losses from operations and recurring negative cash flows from operating activities raise substantial doubt about its ability to continue as a going concern.”
2013: 4-30-13 10-K iss. 7-11-13 http://tinyurl.com/p58jcbw
==> ((((NO GOING CONCERN STATEMENT INCLUDED.))))
CASH a/o 4-30-13: $35.2mm
CASH a/o 6-30-13: $42.6mm
CASH a/o 7-31-13: $41.6mm
CASH a/o 10-31-13: $44.4mm
CASH a/o 1-31-14: $63.2mm
CASH a/o 2-15-14: $79.7mm
= = = = = = = = = = Also, a quick look at #Employees per 4-30-13 10K…
2011: 4-30-11 10-K: "As of 4-30-11, we employed 154 full-time emps & 2 part-time emps”
2012: 4-30-12 10-K: "As of 4-30-12, we employed 172 full-time emps & 2 part-time emps."
2013: 4-30-13 10-K: "As of 4-30-13, we employed 182 full-time emps & 5 part-time emps."
= = = = = = = = = = = = = = = = = = http://www.peregrineinc.com
Peregrine’s Corp. Fact Sheet updated 3-17-2014:
http://www.peregrineinc.com/images/stories/pdfs/march_corp_fact_sheet.pdf
- - - - - - - - - - - -