TUSTIN, CA, June 11, 2012 – Avid Bioservices, a subsidiary of Peregrine Pharmaceuticals, Inc. (NASDAQ: PPHM), today announced that it will collaborate with San Diego-based Phage Pharmaceuticals, whereby Avid will add a custom protein production service using Phage’s novel bacteriophage production system to its suite of current client offerings. This new service will be formally launched at the upcoming Biotechnology Industry Organization (BIO) International Convention from June 18-21, 2012 in Boston, Massachusetts. Further details on the partnership were not disclosed.

“By partnering with Phage, we complement our existing services portfolio with Phage’s facility, which is dedicated to microbial production and we believe this strategic addition will benefit our clients’ projects by enhancing protein production, to yield more stable and potent proteins,” said Steven W. King, president of Avid Bioservices. “We are pleased to be working with Phage to offer their proprietary expression system, as it has many advantages and serves as an extension of our existing cGMP protein production services.”

“Avid’s established reputation in the industry as a supplier of broad biomanufacturing  capabilities, supporting production at every stage of development, makes them an ideal partner for us,” said Jamie Oliver, Pharm.D., President & Chief Executive Officer at Phage Pharmaceuticals. “Phage’s manufacturing process improves upon well-established approaches for the manufacture of targeted proteins and results in production of properly folded, soluble therapeutic proteins, at high yields. We believe this will be a great
asset to Avid’s already comprehensive list of service offerings.”

About Phage Pharmaceuticals
Phage Pharmaceuticals is a private San Diego, California-based clinical-stage specialty
biopharmaceutical company that develops and manufactures therapeutic proteins using a proprietary production method at its own government-certified cGMP facility. The company develops therapeutic proteins for niche markets and indications for which there already exists evidence of safety and efficacy in humans. Additional information about Phage can be found at www.phagepharma.com.

About Avid Bioservices
Avid Bioservices provides a comprehensive range of high quality cGMP manufacturing services for the biotechnology and biopharmaceutical industries to support manufacturing of cGMP commercial and clinical products. With over 10 years of experience producing monoclonal antibodies and recombinant proteins in batch, fed-batch and perfusion modes, Avid’s services include stability testing, clinical and commercial product manufacturing and purification, bulk packaging, final product filling and regulatory
strategy, submission and support. The company also provides a variety of process development activities, including cell line optimization, analytical methods development and product characterization. For more information about Avid, please visit www.avidbio.com.

Jamie Oliver, CEO of Phage Pharmaceuticals, said: “Acquiring this license is another milestone for Phage’s quality program and for our goal of commercializing our products. This demonstrated our continued commitment and compliance to the FDA quality system regulations.” Oliver went on to say, “Phage’s current strategy will utilize the facility to manufacture their clinical development compounds as well as provide GMP material for our partners.”

Phage has a proprietary E. coli bacterial expression system for non-glycosylated proteins which results in the production of properly folded therapeutic proteins, and has the capacity to produce biosimilar and novel proteins for R&D and clinical-scale lots. The Company’s proprietary manufacturing process results in lower production costs and is associated with fewer waste by-products and impurities compared with conventional methods used in the manufacture of similar therapeutics. The Company maintains open INDs with the U.S. FDA for clinical development of FGF-1 and human growth hormone (“hGH”), both of which have shown proof of clinical safety and demonstrated efficacy in humans.

For more information on Phage Pharmaceuticals call 1-858-427-9100 or visit www.phagepharma.com.

Phage’s CEO, Jamie Oliver, stated, “This is a remarkable milestone for Phage. Our FGF-1 drug candidate may replace a costly surgical operation performed in a surgical theater under general anesthesia with a much less expensive procedure conducted in a doctor’s office under local anesthesia. This drug product has the potential to be more palatable to individuals who have avoided treatment to date because they are unwilling to undergo the current surgical therapy. The treatment of chronic eardrum perforations is an attractive niche market opportunity that will generate substantial returns at pharmaceutical margins.”

“There is currently no approved drug therapy for this condition, making this a first-in-class therapy” said Fred Chanson, Chairman of Phage’s Board. He further commented, “We expect to initiate the study early in the first quarter of 2012.”

Phage Pharmaceuticals, Inc. is a private biopharmaceutical company based in San Diego, California. Phage has a proprietary E. coli “Intelligent Protein” bacterial expression system for proteins which results in the production of properly folded therapeutic proteins, and has the capacity to produce biosimilar and novel proteins for R&D and clinical-scale lots. The Company’s proprietary manufacturing process results in lower production costs and is associated with fewer waste by-products and impurities compared with conventional methods used in the manufacture of similar therapeutics. The Company maintains open INDs with the U.S. FDA for clinical development of FGF-1 and human growth hormone (“hGH”), both of which have shown proof of clinical safety and demonstrated efficacy in humans. Its cGMP manufacturing facility has been issued a drug manufacturing license by the California Dept. of Public Health.

CONTACT:
Jamie Oliver
Phage Pharmaceuticals, Inc.
6868 Nancy Ridge Drive, #100
San Diego, CA 92121
Phone: 858-427-9126
Cell: 919-264-9224
joliver@phagepharma.com
info@phagepharma.com

For more information on Phage Pharmaceuticals call 1-858-427-9100 or visit www.phagepharma.com.

“Many of our clients look to decrease the cost of goods for the manufacture of their promising therapeutic proteins, and Phage’s technology will now allow us to provide this benefit to our clients when it’s seen as a good fit,” stated Qamar Zaidi, President of Stamford Bioprocess Technologies.

Jamie Oliver, CEO and President of Phage Pharmaceuticals said, “Our ‘Intelligent Protein’ platform allows the production of fully soluble, properly folded proteins which are released into the supernatant. This technology has led to improved yields, simplified downstream processing and in some cases improved activities. We believe there is a marked synergism between Phage and Stamford, and this would benefit our clients.”

Phage Pharmaceuticals, Inc. is a private biopharmaceutical company based in San Diego, California.  Phage has a proprietary E. coli bacterial expression system for proteins which results in the production of properly folded therapeutic proteins, and has the capacity to produce biosimilar and novel proteins for R&D and clinical-scale lots. The Company’s proprietary manufacturing process results in lower production costs and is associated with fewer waste by-products and impurities compared with conventional methods used in the manufacture of similar therapeutics. The Company maintains open INDs with the U.S. FDA for clinical development of FGF-1 and human growth hormone (“hGH”), both of which have shown proof of clinical safety and demonstrated efficacy in humans. Its cGMP manufacturing facility has been issued a drug manufacturing license by the California Dept. of Public Health.

Stamford Bioprocess Technologies is a biologic contract development and production organization in Orange County, Southern California. Stamford specializes in recombinant protein production offering services in cell line development, product and process characterization, and development of manufacturing processes that are optimized for robust high titer production of high purity proteins from cell culture. Processes are developed with scale up, manufacturability, economics and regulatory requirements in mind. For more information, visit www.stamfordbio.com.

CONTACT:
Jamie Oliver
Phage Pharmaceuticals, Inc.
6868 Nancy Ridge Drive, #100
San Diego, CA 92121
Phone: 858-427-9126
Cell: 919-264-9224
joliver@phagepharma.com
info@phagepharma.com

“The Chinese cosmetic and cosmeceutical market, with a size of $16.9 billion in sales in  2008, is characterized by low penetration and a large potential customer base,” said Fred Chanson, Chairman of the Board of Phage Pharmaceuticals.  “Since the Chinese market is growing 50% faster than cosmetic markets in other countries, this joint development offers us a great opportunity to expand.”

Viva Biotech Ltd. is a drug discovery contract research organization. It currently employs close to 200 scientists in a 65,000 sq. ft. research center in Shanghai, China. Viva works with most of the top ten largest global pharmaceutical companies and dozens of small to medium sized U.S. and European-based businesses in studies of gene-to-structure, reagent provision, in vitro and in vivo assays, target ID, ADME, animal models, and more.

Phage Pharmaceuticals, Inc. is a private biopharmaceutical company based in San Diego, California.  Phage has a proprietary E. coli bacterial expression system for non-glycosylated proteins which results in the production of properly folded therapeutic proteins, and has the capacity to produce biosimilar and novel proteins for R&D and clinical-scale lots. The Company’s proprietary manufacturing process results in lower production costs and is associated with fewer waste by-products and impurities compared with conventional methods used in the manufacture of similar therapeutics. The Company maintains open INDs with the U.S. FDA for clinical development of FGF-1 and human growth hormone (“hGH”), both of which have shown proof of clinical safety and demonstrated efficacy in humans.

Contact:
Jamie Oliver
Phage Pharmaceuticals, Inc.
6868 Nancy Ridge Drive, #100
San Diego, CA 92121
Phone: 858-427-9126
Cell: 919-264-9224
joliver@phagepharma.com
info@phagepharma.com

“I am honored to have been selected to serve as Phage’s CMO, and I look forward to continuing the development of Phage’s FGF-1 for human clinical use.” said Dr. Stegmann. “Cardiovascular disease is still the No. 1 killer in the Western World and a growing problem in the Asian populations; therefore, we will increase our efforts on the path of developing a new drug entity for the treatment of coronary heart disease.”

Dr. Stegmann is a Cardiovascular Surgeon and Professor of Surgery; he held the position of Director of the Department for Thoracic & Cardiovascular Surgery at the Fulda Medical Center, Fulda, Germany from 1984 to 2006. Dr. Stegmann also serves as a member of the Faculty of Hannover Medical School. In addition, Dr. Stegmann is a medical research scientist who has been working during the last 12 years in the area of Neo-Angiogenesis and Human Growth Factors. His medical research has lead to the discovery of a way to stimulate the growth of new blood vessels in the heart. His landmark clinical trials using FGF to stimulate angiogenesis in the heart have been published in prestigious medical journals including Circulation and Journal of Cardiac and Vascular Regeneration and have been reported on in the New York Times and The Wall Street Journal.

Dr. Stegmann received his medical degree (summa cum laude) from Heidelberg University, Heidelberg, Germany and completed a doctoral thesis as part of that degree. The thesis, entitled “Content of Catecholamines and Change in Enzyme-Activities of the Cardiac Muscle in Experimentally Hypertrophied Hearts” was awarded the prize for “Best Dissertation” by the Medical Faculty of the University of Heidelberg. In 1982 he was awarded the Rudolf Nissen Memorial Prize by the German Society for Thoracic and Cardiovascular Surgery. In 2004, Dr. Stegmann published the book New Vessels for the Heart, and in 2007 he published the book Holding a Woman’s Heart in My Hands. Dr. Stegmann is a member of the New York Academy of Sciences, a member of the Ukrainian Academy of Medical Sciences, and an Honorary Member of the Rideau Institute of Canada.

For more information on Phage Pharmaceuticals call 1-858-427-9100 or visit www.phagepharma.com.
Contact:
Jamie Oliver, CEO
Phage Pharmaceuticals, Inc.
6868 Nancy Ridge Drive, #100
San Diego, CA 92121
Phone: 858-427-9126
Cell: 919-264-9224
joliver@phagepharma.com
info@phagepharma.com

About Phage Pharmaceuticals, Inc.
Phage Pharmaceuticals, Inc. is a private biopharmaceutical company based in San Diego, California. Phage Pharmaceuticals makes use of a proprietary production method that improves upon well-established approaches for the manufacture of targeted proteins and results in the production of properly-folded therapeutic proteins at high yields. The production method results in lower manufacturing costs with fewer waste by-products and impurities compared with current conventional methods used in the manufacture of similar therapeutics.

Phage Pharmaceuticals has two product candidates in clinical development, human Growth Hormone (“hGH”) and Fibroblast Growth Factor-1 (“FGF-1″). Both product candidates have open, active INDs with the FDA. The Company has other therapeutic proteins in various stages of pre-clinical development. Among the programs are those involving Beta Interferon, G-CSF, Parathyroid Hormone, EGF, the various forms of FGF (1 to 22), and PEGylated versions of Interferon Alpha, hGH, G-CSF, and Beta Interferon.

Dr. Oliver has more than 28 years of clinical research experience in both academia and the pharmaceutical industry, including positions as Medical Officer of ClinTrials Research, Vice President of Peregrine Pharmaceuticals and Maret Pharmaceuticals, and CEO of Peptagen, Inc.. He has provided overall strategic and operational direction in biotechnology drug development for clinical, regulatory, research and development, quality assurance, and manufacturing. He has extensive experience in raising public and private equity and venture-based, start-up capital and with the FDA. He received his bachelor’s degree and Doctorate in Pharmacy from Mercer University in Atlanta.

“I am very excited about taking on this role at Phage Pharmaceuticals,” said Oliver. “I’m proud of what Phage has accomplished so far and in the planned expansion of their novel protein expression technology. We will be actively expanding our portfolio of biosimilar proteins and are actively involved in global expansion.”

To achieve the new goals for Phage, a number of key internal promotions have been executed. The executive management team has been expanded to include Brian Baker to serve as Chief Financial Officer. Brian is a seasoned veteran of the biotech industry from the San Diego area. Brian has extensive experience in licensing, equity deal structuring, and collaborative partnerships.

A second senior staff promotion of Dr. Wei Chen to Chief Scientific Officer rounds out the additions to the executive team. Wei’s broad experience in protein expression system and biologic constructs will be necessary for the company’s planned expansion.

The third key staff change was the promotion of Judi Appleman to Assistant Director of Regulatory Affairs. With the expansion of the clinical development programs, Judi will be instrumental in overseeing the Company’s relationship with the U.S. Food and Drug Administration. In addition, Mrs. Appleman continues to provide program management for the clinical programs.

Contact:
Jamie Oliver
Phage Pharmaceuticals, Inc.
6868 Nancy Ridge Drive, #100
San Diego, CA 92121
Phone: 858-427-9126
Cell: 919-264-9224
joliver@phagepharma.com
info@phagepharma.com
www.phagepharma.com

About Phage Pharmaceuticals

Phage Pharmaceuticals makes use of a proprietary production method that improves upon well established approaches for the manufacture of targeted proteins and results in the production of properly-folded therapeutic proteins at high yields. The production method results in lower manufacturing costs with fewer waste by-products and impurities compared with current conventional methods used in the manufacture of similar therapeutics.

Phage Pharmaceuticals has two product candidates in clinical development, Human Growth Hormone (“hGH”) and FGF-1. Both product candidates have open, active INDs with the FDA. Phase I clinical trials of the company’s hGH drug candidate have been completed successfully, and the company is positioned to begin further clinical development of hGH. FGF-1 manufactured at Phage Pharmaceuticals’ facilities has been assessed successfully in a Phase I clinical trial for treatment of wounds and was shown to be safe and well tolerated. Other preparations of FGF-1 manufactured at Phage Pharmaceuticals’ facilities were assessed in Phase I safety and Phage II efficacy trials for the treatment of severe Coronary Heart Disease. Phage Pharmaceuticals has other therapeutic proteins in various stages of pre-clinical development. Among the programs are those involving Beta Interferon, G-CSF, Parathyroid Hormone, EGF, and pegylated versions of Interferon Alpha, hGH, C-CSF, Beta Interferon, EPO, Coagulation Factor IX, FGF-1, Interferon Gamma, Interleukin-12, and Insulin-Like Growth Factor-1.

Under the Patient Protection and Affordable Care Act, cash grants were recently awarded to Qualifying Therapeutic Discovery Projects that showed significant potential to produce new and cost-saving therapies, support job growth, and increase U.S. competitiveness in life, biological, and medical sciences. Grants were awarded through a competitive application process administered by the U.S. Departments of Health and Human Services and the Treasury.

“We are pleased to have been awarded this grant,” commented Robert J. Beckman, CEO of Phage Pharmaceuticals. “We believe that the selection of our program for this grant is a reflection of the potential of our proposed application for Fibroblast Growth Factor-1 (“FGF-1″) produced at our government-certified cGMP manufacturing facility using our proprietary manufacturing method.”

About Phage Pharmaceuticals

Phage Pharmaceuticals makes use of a proprietary production method that improves upon well established approaches for the manufacture of targeted proteins and results in the production of properly-folded therapeutic proteins at high yields. The production method results in lower manufacturing costs with fewer waste by-products and impurities compared with current conventional methods used in the manufacture of similar therapeutics.

Phage Pharmaceuticals has two product candidates in clinical development, Human Growth Hormone (“hGH”) and FGF-1. Both product candidates have open, active INDs with the FDA. Phase I clinical trials of the company’s hGH drug candidate have been completed successfully, and the company is positioned to begin further clinical development of hGH. FGF-1 manufactured at Phage Pharmaceuticals’ facilities has been assessed successfully in a Phase I clinical trial for treatment of wounds and was shown to be safe and well tolerated. Other preparations of FGF-1 manufactured at Phage Pharmaceuticals’ facilities were assessed in Phase I safety and Phage II efficacy trials for the treatment of severe Coronary Heart Disease. Phage Pharmaceuticals has other therapeutic proteins in various stages of pre-clinical development. Among the programs are those involving Beta Interferon, G-CSF, Parathyroid Hormone, EGF, and pegylated versions of Interferon Alpha, hGH, C-CSF, Beta Interferon, EPO, Coagulation Factor IX, FGF-1, Interferon Gamma, Interleukin-12, and Insulin-Like Growth Factor-1.

Contact

Philip N. Sussman, Chief Business Officer, 858-427-9125, info@phagepharma.com.