Peregrine Pharmaceuticals (NASDAQ: PPHM ) has traded sideways in 2013, down about 3% year to date. The company reported Wednesday that manufacturing revenue increased by 21% to $7 million last quarter compared to a year ago, but operating expenses rose to $15 million due to increasing costs of developing its cancer drug candidate bavituximab. Peregrine is developing bavituximab as a potential treatment for a number of cancers, but its late-stage trial for non-small cell lung cancer is undoubtedly the main value driver in the near-term. Enrollment in this late-stage trial is expected to begin this month, and final results should roll in around December 2016. What's my take? Although trial updates for bavituximab's other indications may be catalysts in 2014, I think the company will have little choice but to continue to dilute shareholders. With less than $40 million in cash and operating losses expected to increase to over $4 million a month, Foolish investors would be wise to sidestep Peregrine for the time being.