Peregrine Pharmaceuticals Provides Update on the Internal

Peregrine Pharmaceuticals Provides Update on the Internal Review of
Its Phase II Second-Line Non-Small Cell Lung Cancer Trial 
Preliminary Analysis Supports Advancing Bavituximab Into Phase III
Development 
TUSTIN, CA -- (Marketwire) -- 01/07/13 --  Peregrine Pharmaceuticals,
Inc.(NASDAQ: PPHM), a biopharmaceutical company developing
first-in-class monoclonal antibodies focused on the treatment and
diagnosis of cancer, today provided an update from its internal
review of discrepancies from its Phase II randomized, double-blind
placebo-controlled trial of bavituximab in second-line non-small cell
lung cancer (NSCLC) in 121 patients. The review was prompted by the
discovery of vial coding discrepancies while preparing for an end of
Phase II meeting with the FDA. The internal review included a
thorough operational review of multiple third-party vendor operations
at sites worldwide, testing of investigational product used in the
trial, additional patient sample testing to determine drug levels and
a review of immunogenicity testing results from the trial. The
results of the extensive internal review indicate that discrepancies
are isolated to the placebo and 1 mg/kg treatment arms of the trial
and that there was no evidence of discrepancies in the 3 mg/kg
treatment arm of the trial.  
"Our goal in undertaking such a comprehensive review was to
understand every aspect of this clinical trial," said Jeffrey L.
Masten, vice president, quality of Peregrine. "Due to the complex
nature of this trial, this was an enormous effort involving multiple
third-party vendors and thousands of product and patient samples
obtained from three different continents. Specifically, we sought to
determine the cause and the impact of any discrepancies within the
trial and to verify every step within the drug product distribution
process. We believe we have accomplished our goals in obtaining a
more thorough understanding of the trial and we are very pleased with
the outcome." 
Based on the results of the internal review, Peregrine is taking a
very conservative approach toward analyzing the results from the
trial which included combining the placebo and 1mg/kg arms into one
treatment arm (control arm), and comparing those results to the
3mg/kg arm. This analysis indicates that the 3 mg/kg a
rm continues to
show favorable tumor response rates, progression-free survival and
overall survival (OS) over the new combined control arm. Peregrine
expects to announce more detailed results from the analysis in the
near term when it is completed.  
"The results from this comprehensive review have provided a better
understanding of the outcome of this trial. We believe that these
results of our internal review and subsequent data analysis support
advancing bavituximab into Phase III development for the treatment of
second-line non-small cell lung cancer," said Joseph S. Shan, vice
president, clinical and regulatory affairs of Peregrine. "We are now
preparing for discussions with the FDA and worldwide regulatory
agencies."  
"With the results of this review in hand, we are now in the process
of updating potential partners and moving the program forward," said
Steven W. King, president and chief executive officer of Peregrine.
"Looking ahead, we anticipate data from seven ongoing bavituximab
trials in different indications as well as results from an imaging
study based on the same novel target." 
About Bavituximab
 Bavituximab is a first-in-class phosphatidylserine
(PS)-targeting monoclonal antibody that represents a new approach to
treating cancer. Bavituximab is the lead drug candidate from the
company's PS technology platform and is currently being tested in
eight clinical trials, including three randomized Phase II trials in
front-line and second-line non-small cell lung cancer and front-line
pancreatic cancer, and five investigator-sponsored trials (ISTs) in
additional oncology indications. PS is a highly immunosuppressive
molecule usually located inside the membrane of healthy cells, but
"flips" and becomes exposed on the outside of cells that line tumor
blood vessels, creating a specific target for anti-cancer treatments.
PS-targeting antibodies target and bind to PS and block this
immunosuppressive signal, thereby enabling the immune system to
recognize and fight the tumor. 
About Peregrine Pharmaceuticals, Inc.
 Peregrine Pharmaceuticals,
Inc. is a biopharmaceutical company with a portfolio of innovative
monoclonal antibodies in clinical trials focused on the treatment and
diagnosis of cancer. The company is pursuing multiple clinical
programs in cancer with its lead product candidate bavituximab and
novel brain cancer agent Cotara(R). Peregrine also has in-house cGMP
manufacturing capabilities through its wholly-owned subsidiary Avid
Bioservices, Inc. (www.avidbio.com), which provides development and
biomanufacturing services for both Peregrine and outside customers.
Additional information about Peregrine can be found at
www.peregrineinc.com.  
Safe Harbor Statement: Statements in this press release which are not
purely historical, including statements regarding Peregrine
Pharmaceuticals' intentions, hopes, beliefs, expectations,
representations, projections, plans or predictions of the future are
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. The forward-looking
statements involve risks and uncertainties including, but not limited
to, the risk that the final OS data from the randomized,
double-blind, placebo-controlled Phase IIb trial may be less
compelling than the data as presently calculated thereby creating
uncertainty with respect to the future development in second-line
NSCLC, the risks that partnering discussions may not result in a
partnering transaction or that such discussions could be hindered or
delayed as a result of the existing class action lawsuits, the risk
that results from the front-line NSCLC trail will not be consistent
with results experienced in earlier trials and may not support
advancing this indication into later stage trials. It is important to
note that the Company's actual results could differ materially from
those in any such forward-looking statements. Factors that could
cause actual results to differ materially include, but are not
limited to, uncertainties associated with completing preclinical and
clinical trials for our technologies; the early stage of product
development; the significant costs to develop our products as all of
our products are currently in development, preclinical studies or
clinical trials; obtaining additional financing to support our
operations and the development of our products; obtaining regulatory
approval for our technologies; anticipated timing of regulatory
filings and the potential success in gaining regulatory approval and
complying with governmental regulations applicable to our business.
Our business could be affected by a number of other factors,
including the risk factors listed from time to time in the our SEC
reports including, but not limited to, the annual report on Form 10-K
for the fiscal year ended April 30, 2012 and quarterly report on Form
10-Q for the quarter ended October 31, 2012. The company cautions
investors not to place undue reliance on the forward-looking
statements contained in this press release. Peregrine
Pharmaceuticals, Inc. disclaims any obligation, and does not
undertake to update or revise any forward-looking statements in this
press release. Our business could be affected by a number of other
factors, including the risk 
factors listed from time to time in the
our SEC reports including, but not limited to, the annual report on
Form 10-K for the fiscal year ended April 30, 2012 and quarterly
report on Form 10-Q for the quarter ended October 31, 2012. The
company cautions investors not to place undue reliance on the
forward-looking statements contained in this press release. Peregrine
Pharmaceuticals, Inc. disclaims any obligation, and does not
undertake to update or revise any forward-looking statements in this
press release. 
Contact: 
Christopher Keenan or Jay Carlson 
Peregrine Pharmaceuticals, Inc. 
(800) 987-8256 
info@peregrineinc.com