Revenue was $1.9m, around the same as the equivalent period a year ago, but total expenditures fell 23 per cent to $6.5m and R&D costs were cut to $4.3m from $5.1m.
The firm's contract manufacturing subsidiary Avid Bioservices was hit by the downturn in the global economy however, posting sales of $983,000 compared to $1.9m a year ago.
Avid said the revenue reduction was the result of the timing of product shipments. Several batches of product had their shipping date shifted from the second to the third quarter, when these revenues will be recorded.
However, Peregrione’s chief financial officer Paul Lytle was upbeat about the CMO’s prospects, saying: “we are projecting a record year for Avid in fiscal year 2009, potentially topping $10m in revenues, and these projections are based on current signed contracts from third party customers.”
The company is now expecting third quarter revenues to reach around $5m, with $3m of that total already received.
“Our Avid contract manufacturing business continues to be a bright spot,” added CEO Steven King. “Avid is on track to be a profitable stand alone business this year, providing critical clinical supplies to Peregrine and growing in value as an asset.”
With that potential in mind, the company has expanded its production capacity through the addition of two new 100,000 litre bioreactors.
Fundraising
Peregrine's net loss was cut 28 per cent to $4.5m, and the company was sitting on cash and cash equivalents of $8.2m at the end of the quarter. Since then it has entered into an agreement for a working capital loan amounting to $5m, along with an option to raise a further $5m.
“These are tough economic times where raising new capital is nearly impossible and we are very pleased with this deal,” said Lytle.