Peregrine hit by DTRA stop on contract

Peregrine Pharmaceuticals has revealed the sudden termination of its negotiations to finalize a contract award with the Defense Threat Reduction Agency of the US Department of Defense as a result of Congressional budget cuts. These cuts dramatically reduced the program funds available for grants from the DTRA's Transformational Medical Technologies Initiative in the 2008 fiscal year.

Peregrine's proposal to investigate bavituximab and other anti-phosphotidylserine antibodies as potential therapies for hemorrhagic fever virus had been selected for a tentative contract to be awarded under the Transformational Medical Technologies Initiative program. The dealwas in late stages of negotiation and was expected to be signed in early 2008.

In the recently-passed HR 3222 - Department of Defense Appropriations Act 2008, Congress eliminated $100.0 million financing for the TMTI program, a major portion of its funding available for these types of projects. These cuts were enacted despite the strenuous opposition of the Bush Administration.