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PPHM Funded by the US Department of Defense’s Defense Threat Reduction Agency
Peregrine Pharmaceuticals, Inc. (PPHM) has apparently caught the interest of the Transformational Medical Technologies Initiative (TMTI) of the US Department of Defense’s Defense Threat Reduction Agency (DTRA). The US government agency DTRA has agreed via contract to pay up to $44.4 million for PPHM’s furtherance of testing and developing what is termed “bavituximab” as well as “broad spectrum treatments for viral hemorrhagic fever infections.” In short, PPHM has been funded to develop counter-terrorism drugs for the US.
According to PPHM’s management, “The DTRA biodefense contract award has the potential to create long-term value for Peregrine, including generating future potential revenues from government stockpiling to combat bioterrorism threats.”
Furthermore, PPHM is well on its way with researching, developing, and testing treatments for cancer and hepatitis C.
Time to Buy Indicators
While the stock price has a volatile history, on January 13, 2009, it moved above its 50-day moving average, on the 14th it moved above its 200-day moving average, and it has recently experienced unusually high volume.
Because of its current low stock price, only .40 per share, there is not a lot of information going on about PPHM, but one can easily chalk that up to its low price and a low amount of publication relations information. While most institutional investors stay away from stocks priced under $1, PPHM does have 4.16 percent institutional investors, a percentage that is likely to increase once PPHM meets the NASDAQ’s “minimum bid price rule” requiring a stock price of at least $1. Look for that by July 27.
Also, look for news about PPHM’s new chairman and the changes that will bring to PPHM.
As with buying any stock, there is risk involved, but several indicators point toward higher stock prices for PPHM: the assignment a new chairman and possibly bringing onboard an additional board member; the stock price crossing above its moving averages; NASDAQ’s $1 stock price requirement deadline coming up on July 27; funding from the US government; and of course, continual successful clinical trials as PPHM strives toward treating various forms of cancer and hepatitis C.