Will Peregrine Pharmaceuticals Earnings Reveal Any New Secrets Against Celgene?
Peregrine Pharmaceuticals will release its quarterly report on Tuesday, and investors have kept the stock in a holding pattern throughout much of the year. After some controversy about the company's lead drug a year ago, investors have been waiting to see how its phase 3 trials go before committing to the stock for the long haul. But the big question investors have is whether Peregrine's bavituximab can beat out Celgene's Abraxane and other potential treatments to produce the blockbuster drug they want to see.
Peregrine Pharmaceuticals has seen its stock's volatility calm down substantially since its year-ago roller-coaster ride, which came on the heels of apparently favorable clinical trial results that later proved untrustworthy. Although Peregrine tried to recover as much solid data from the trial as possible, the episode largely left investors in the position of having to wait to see if phase 3 trials of bavituximab will confirm what Peregine said about its phase 2 results. Will Celgene end up with a head start that will make it impossible for Peregrine to recover? Let's take an early look at what's been happening with Peregrine Pharmaceuticals over the past quarter and what we're likely to see in its report.
Stats on Peregrine Pharmaceuticals
Analyst EPS Estimate
Change From Year-Ago Revenue
Earnings Beats in Past 4 Quarters
Source: Yahoo! Finance
Can Peregrine Pharmaceuticals earnings boost the stock this quarter?
In recent months, analysts have gotten a little more optimistic about Peregrine Pharmaceuticals earnings, narrowing their loss estimates for the current and next fiscal years by a penny per share. The stock has slumped, though, falling 7% since early September.
In September, Peregrine gave investors a roadmap for the company's immediate future. With plans to start its SUNRISE phase 3 trial of bavituximab by year-end to study its effectiveness compared to Sanofi's Taxotere in treating non-small-cell lung cancer, Peregrine hopes that it will serve as an important first step in establishing itself as a successful cancer-fighting agent. Still, with sales of Celgene's Abraxane already having taken off since its approval to fight the disease late last year, Peregrine will face a tough road to make up for lost time against its competition.
In the long run, though, bavituximab could prove important for much wider-ranging reasons. Peregrine's offering is just one of many monoclonal antibodies seeking to make conventional chemotherapy obsolete. Eli Lilly's necitumumab, for instance, has demonstrated its effectiveness in treating squamous non-small-cell lung cancer in phase 3 trials, albeit with some safety concerns related to blood clotting. Investors hope that Peregrine's candidates could eventually produce similarly promising results without the same safety risks and without the painful side effects of conventional chemotherapy.
Peregrine has continued to seek new indications with which it can use bavituximab to treat cancer. Last month, the company released data showing that its antibodies produced tumor-fighting activity in a preclinical melanoma model. Peregrine is also running early stage trials testing bavituximab in breast cancer, liver cancer, and rectal adenocarcinoma, hoping to maximize its breadth in fighting cancer.
In the Peregrine Pharmaceuticals earnings report, watch to see what the company says about its phase 3 bavituximab trial. With so much resting on the trial's success, Peregrine needs to move forward aggressively without duplicating the problems that caused so much controversy in 2012 and uncertainty over the past year.
A top stock to usher in the New Year
There's a huge difference between a good stock, and a stock that can make you rich. The Motley Fool's chief investment officer has selected his No. 1 stock for 2014, and it's one of those stocks that could make you rich. You can find out which stock it is in the special free report: "The Motley Fool's Top Stock for 2014." Just click here to access the report and find out the name of this under-the-radar company.
Click here to add Peregrine Pharmaceuticals to My Watchlist, which can find all of our Foolish analysis on it and all your other stocks.
The article Will Peregrine Pharmaceuticals Earnings Reveal Any New Secrets Against Celgene? originally appeared on Fool.com.
Fool contributor Dan Caplinger has no position in any stocks mentioned. You can follow him on Twitter @DanCaplinger. The Motley Fool recommends Celgene. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.