Peregrine Pharmaceuticals Inc. (NASDAQ: PPHM) fell about 80% yesterday after the company revealed that there were discrepancies in the data reported on the company’s Phase II trial of its lung-cancer drug bavituximab. That was after the company reported promising results earlier this month.
Today the stock rose as much as 50% as some investors clearly smell a bargain. Peregrine had a similar problem with the data from this trial earlier this year and now faces at least one and probably more lawsuits based on yesterday’s announcement of the bad data.
Another drug maker, Astex Pharmaceuticals Inc. (NASDAQ: ASTX) cancelled trials on its own small-cell lung cancer drug after the company’s Phase II trials failed to meet expectations. Bristol-Meyers Squibb (NYSE: BMY) is working on a different type of drug that has been shown to reduce tumor mass in 18% of lung cancer patients in Phase I trials.
Shares of Peregrine are up 44% at around noon today at $1.67 in a 52-week range of $0.39 to $5.50. Shares closed at $1.16 last night.