NEW YORK (TheStreet) -- Peregrine Pharmaceuticals (PPHM)  on Monday was jumping the most since January thanks to a regulator's decision to designate its Bavituximab product for so-called Fast Track approval.

In mid-morning trading, Tustin, Calif.-based Peregrine was surging 25% to $1.81, the most since Jan. 7, 2013 as volume was more than four times its daily three-month average of about 1.2 million shares.

Peregrine, in a statement, said the Federal Drug Administration gave the go-ahead for its main immunotherapy product, a potential treatment for second-line non-small cell lung cancer. Peregrine recently began a test called SUNRISE (Stimulating ImmUne RespoNse thRough BavItuximab in a PhaSE III Lung Cancer Study), a Phase III clinical trial that uses Bavituximab and docetaxel, a chemotherapy treatment, as the experimental group versus a placebo and docetaxel in the control group with the intent of determining the effects of the drug on overall survival rate.

The randomized, double-blind study will test the safety and effectiveness of the drug as well as the ability of the subjects to tolerate it.

TheStreet Ratings team rates PEREGRINE PHARMACEUTICLS INC as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:

"We rate PEREGRINE PHARMACEUTICLS INC (PPHM) a SELL. This is driven by a number of negative factors, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The area that we feel has been the company's primary weakness has been its relatively poor performance when compared with the S&P 500 during the past year."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • In its most recent trading session, PPHM has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. Turning our attention to the future direction of the stock, we do not believe this stock offers ample reward opportunity to compensate for the risks, despite the fact that it rose over the past year.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Biotechnology industry and the overall market, PEREGRINE PHARMACEUTICLS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The net income growth from the same quarter one year ago has exceeded that of the Biotechnology industry average, but is less than that of the S&P 500. The net income increased by 11.0% when compared to the same quarter one year prior, going from -$8.75 million to -$7.79 million.
  • PEREGRINE PHARMACEUTICLS INC has improved earnings per share by 37.5% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, PEREGRINE PHARMACEUTICLS INC continued to lose money by earning -$0.25 versus -$0.50 in the prior year. This year, the market expects an improvement in earnings (-$0.24 versus -$0.25).
  • Net operating cash flow has increased to -$5.49 million or 42.59% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 1.32%.
  • You can view the full analysis from the report here: PPHM Ratings Report