Tustin-based drug developer Peregrine Pharmaceuticals Inc.’s shares shot up on Wednesday, after it said it received new financing and gave a corporate update.
Peregrine shares were down about 7% in midday trading Thursday, a day after climbing 22% to a market value of $89 million.
The drug developer said that it’s raised $14.3 million in financing from New York investment bank McNicoll, Lewis & Vlak LLC to replace initial funding that it had to repay after it told analysts last month that they shouldn’t rely on clinical trial data for its bavituximab lung cancer candidate after it discovered “major discrepancies” during a review of said data.
Peregrine had $18.99 million in cash and cash equivalents on its books prior to today’s announcement, which would be enough to fund its operations through April 2013 unless it raised additional capital
Peregrine also said that its Avid Bioservices unit, which does contract manufacturing for other drug makers, will have in excess of $15 million in revenue in the 12 months ending next April.