Peregrine Pharmaceuticals Posts Wider Fiscal 2006 Loss As Revenue Drops Sharply, Costs Increase

TUSTIN, Calif. -- Peregrine Pharmaceuticals Inc. shares slipped in premarket trading Friday after the drug maker said it posted a wider loss in fiscal 2006, as revenue from its contract manufacturing subsidiary fell and costs increased.

Losses for the year ended April 30 totaled $17.1 million, or 10 cents per share, compared with a loss of $15.5 million, or 11 cents per share last year. The number of shares outstanding increased to 168.3 million from 144.8 million.

Revenue dropped 36 percent to $3.2 million from $5 million during the same period last year.

Avid Bioservices, the company's contract manufacturing subsidiary, contributed $3 million in contract manufacturing revenue, 36 percent less than the $4.7 million in contributed last year.

Peregrine uses the facility to support its clinical-stage drugs being developed to treat hepatitis C and cancer.

Total costs rose 8 percent to $22.3 million, from $20.7 million last year, due to an increase in research and development expenses as well as selling, general and administrative expenses.

Company shares dropped 3 cents to $1.37, after closing at $1.40 on Thursday on the Nasdaq.