Peregrine Pharma raises $13M

California, USA-based Peregrine Pharmaceuticals says that it has signed a definitive agreement for the sale of 9,285,714 shares of common stock to one institutional investor, the Double U Master Fund, in exchange for net proceeds of $13.0 million. Pursuant to the agreement and subject to certain conditions, Peregrine has agreed not to offer or sell its common stock in any private placements at a price below $2.50 per share during the remainder of the calendar year.

The proceeds from this offering will be used to advance the company's lead clinical programs, including a Phase Ib repeat-dose study of bavituximab for the treatment of hepatitis C virus infection that follows positive safety and initial efficacy results in a Phase Ia trial; a Phase I study of bavituximab for the treatment of solid tumor cancer; and a Phase II/III evaluation of Cotara (a chimeric tumor necrosis factor) for the treatment of brain cancer.

The company also intends to use part of the proceeds to accelerate the clinical progress of these lead drug candidates by adding additional clinical programs in the USA or abroad. In addition, the proceeds will be used to further fund preclinical programs that are assessing the potential utility of bavituximab for the treatment of influenza, including avian flu, as well as for HIV infection, cytomegalovirus and other lethal viruses.