Buying Momentum on Bavituximab, Earnings for Peregrine

Continuing its upward trend from yesterday, Peregrine Pharmaceuticals (NASDAQ:PPHM) broke above $1.00 on a 12% gap up this morning and has nearly doubled in the past 10 days, largely attributable to expectations of earnings news – due Monday – and the completion of patient enrollment in a randomized Phase II study of bavituximab for the treatment of pancreatic cancer. Bavituximab shows promising patient survival rates and tumor response in a market dominated by high-toxicity treatments. The compound is also being tested as an antiviral in a Phase II study of Hepatitis C, which finished enrollment in September of 2011, and an ongoing study in non-small cell lung cancer. After a significant run in the past two weeks, many analysts expect PPHM’s momentum to break after the weekend and into Monday’s earnings report.