Boston, MA 03/06/2014 (wallstreetpr) – Peregrine Pharmaceuticals (NASDAQ:PPHM) was able to achieve a strong gain where the share prices soared more than 50 percent on Wednesday. But on Thursday the stock was in some kind of correction, last seen down more than 5 percent, despite hitting a new 12-month high of $3.18 in the early trading.
But even with the up and down noted on the stock, there is no cause for alarm as the company seems to be on the verge of benefiting from its anticancer drugs.
In fact, the Wednesday surge of the shares was due to news report relating to the three preclinical data of some anticancer drugs that Peregrine Pharmaceuticals (NASDAQ:PPHM) is developing. With the market opportunities for cancer-targeted drugs well known, it almost always happens that investors get bullish when biotech companies report encouraging data for their potential cancer drugs.
While the fact that Peregrine Pharmaceuticals (NASDAQ:PPHM) said it is going to present preclinical data on the three drugs it is developing doesn’t necessary mean that they will be on the market tomorrow. Yet the whole thing here concerning the announced data presentation is that there seems to be potential and that is very important.
More than the scheduled presentation
The optimism around Peregrine Pharmaceuticals (NASDAQ:PPHM) is not just limited to news around the upcoming preclinical data presentation. The company is working on an array of anticancer drugs and it might just be a matter of time before its fortunes change for the better when it brings its drugs to the market.
While there was no solid report to back the Wednesday gain, save for the announced presentation, Peregrine Pharmaceuticals (NASDAQ:PPHM) reveals compelling underlying strength that far outweigh any weakness that might exist in the stock. Look, the company was in January award fast-tracking status by the U.S. Food and Drug Administration or FDA, for its anticancer drug bavituximab.
What that means is that the drug has been noted for its potential to fill the unmet medical need and bring relief to patients with life-threatening diseases. As such, the fast-tracking status enables the company to move the drug through the approval stages more quickly than normal.
Institutional interest
Peregrine Pharmaceuticals (NASDAQ:PPHM) looks attractive for institutional investors. Roughly 16 percent of the company’s outstanding shares are owned by institutional investors. These investors include Vanguard Group, Barclays Global Investors, Blackrock Fund Advisors and Barclays Global Investors.
