Peregrine Pharma (PPHM) Stock: Here's The Reason For Today's Gains

Peregrine Pharma (NASDAQ: PPHM)

Peregrine Pharma is having a strong day in the market today, and for good reason. Early this morning, the company made a huge announcement. It has decided to form a strategic partnership that will lead to accelerated research and discovery for one of its lead candidates. Today, we’ll talk about the strategic partnership that was formed, how the market reacted to the news, and what we can expect to see from PPHM moving forward. So, let’s get right to it…

PPHM Forms A Strategic Partnership

Peregrine Pharma has been working on a clinical stage treatment for cancer known as bavituximab for quite some time now. However, the company is looking to accelerate the research and discovery phase for this potential treatment. To do so, they have decided to form a strategic partnership with NCCN, also known as the National Comprehensive Cancer Network. PPHM has built a name for itself as a company that has the ability to develop a broad range of therapies designed to stimulate the immune system, and it is the company’s goal that the new strategic partnership will help push bavituximab further, quicker.

The National Comprehensive Cancer Network is a non-for-profit alliance. The network is made up of 26 leading cancer centers that are active in research and patient care as well as education. Ultimately, NCCN aims to improve the effectiveness and quality of cancer treatment so that people suffering from the disease can live long, healthy lives. Between the two of these companies, we can expect to see something incredible when it comes to innovation in the cancer treatment arena.

How The Market Reacted To The News

As investors, we’ve learned that any time there is positive news released with regard to a publicly traded company, we can expect to see gains in the value of the stock associated with that company. That’s exactly what we’re seeing from PPHM. The new strategic partnership is an incredibly important one that will likely lead to accelerated results for bavituximab, which will ultimately lead to gains in revenue, earnings, and stock valuations for the company. Currently (3:35), PPHM is trading at $0.49 per share after a gain of $0.07 or 15.30% thus far today.

What We Can Expect To See Moving Forward

Moving forward, I have a relatively mixed opinion of what we can expect to see from Peregrine Pharma. In the immediate short term (today and tomorrow), we can expect to see further gains as the result of investor excitement. The fact of the matter is that when investors hear positive news, they tend to get excited, sending stock values upward. However, it’s also important to remember that excitement is an emotion, and emotions fade. So in the more lengthy short term, over the next couple of months, I’m expecting for excitement to fade leading to a correction on the stock. Following the correction, we can expect to see flat movement with little by way of trends in one direction or another. However, in the long run, my opinion on PPHM is very bullish. The bottom line is that the company is working on a treatment for an illness that produces an incredible demand. If they are able to accomplish this goal, it will prove to be incredibly profitable. Now, PPHM has the backing of one of the premier cancer networks in the world. As a result, they will gain from the knowledge and research the network has already amassed. All in all, things are looking great for Peregrine Pharma in the long run.

What Do You Think?

Where do you think PPHM is headed moving forward and why? Let us know your opinion in the comments below!