PEREGRINE PHARMACEUTICALS COULD HAVE BIG TROUBLE AFTER REPORTING ERRONEOUS...
Peregrine Pharmaceuticals (PPHM) could have big trouble after reporting erroneous clinical trial results that took the stock up 13-fold from its lows this year.
Lawsuits claiming potential misconduct are likely to start rolling in, and with new doubt that lead drug candidate bavituximab has any value at all, PPHM could trade back down to the sub-$1.00 level seen just a couple of months ago.
In May, the company reported top-line data from its Phase II trial for bavituximab in second line non small-cell lung cancer (2nd-line NSCLC), with results showing a 1.5 month increase in Progression-Free Survival (PFS) in patients on the drug vs. those on placebo.
Despite the impressive results, no large biotech-focused funds got involved in the stock, which we thought was surprising (see PropThink`s prior story).
With little interest in the stock, PPHM was facing a NASDAQ de-listing throughout the summer, when in late July, activity started heating up, fueled by management`s statements that the company was in talks with potential partners for bavituximab.
Still no large healthcare-focused funds cared about the stock, with the "top-line" results previously reported lacking key statistical metrics that typically validate clinical trial results like P-values or hazard ratios.
Additionally, the company`s need to raise its share price and public profile to;
1) avoid the NASDAQ delisting and
2) obtain capital through a credit line, also fuel concerns over who knew what and when, as well as concerns over the company`s aggressive public disclosures.
As a result of today`s news, PPHM will certainly be diverting resources to corporate challenges beyond advancing its pipeline.
It is hard to imagine how investors, or the pharmaceutical industry, will ever trust this company again.
this flakey managament could have easily been frauded by the contractor or its employees and never knew anything until it was too late. contractor reports really good data, price climbs as we've seen recently and they of course had shares at $0.50 and then "mix up" where they have already set up a short postion after taking gains on the manipulated rise. all on false/ manipulated data provided to PPHM incompotent management.