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."