Ownership Submission
FORM 4
Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP OF SECURITIES

Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public Utility Holding Company Act of 1935 or Section 30(h) of the Investment Company Act of 1940
OMB APPROVAL
OMB Number: 3235-0287
Expires: January 31, 2005
Estimated average burden hours per response... 0.5

(Print or Type Responses)
1. Name and Address of Reporting Person *
Hudson Leslie
   2. Issuer Name and Ticker or Trading Symbol
AVI BIOPHARMA INC [AVII] 		5. Relationship of Reporting Person(s) to Issuer
(Check all applicable)
_____ Director _____ 10% Owner
__X__ Officer (give title below) __X__ Other (specify below)
Former CEO / Former CEO
(Last)
(First)
(Middle)
3450 MONTE VILLA PARKWAY, SUITE 101		 3. Date of Earliest Transaction (Month/Day/Year)
07/07/2010
(Street)

BOTHELL, WA 98021		 4. If Amendment, Date Original Filed(Month/Day/Year)
 6. Individual or Joint/Group Filing(Check Applicable Line)
_X_ Form filed by One Reporting Person
___ Form filed by More than One Reporting Person
(City)
(State)
(Zip)
Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned
1.Title of Security
(Instr. 3)		 2. Transaction Date (Month/Day/Year) 2A. Deemed Execution Date, if any (Month/Day/Year) 3. Transaction Code
(Instr. 8)		 4. Securities Acquired (A) or Disposed of (D)
(Instr. 3, 4 and 5)		 5. Amount of Securities Beneficially Owned Following Reported Transaction(s)
(Instr. 3 and 4)		 6. Ownership Form: Direct (D) or Indirect (I)
(Instr. 4)		 7. Nature of Indirect Beneficial Ownership
(Instr. 4)
Code V Amount (A) or (D) Price
Common Stock 07/07/2010   M(1)   200,000 A $ 0.92 584,559 D  
Common Stock 07/07/2010   S(1)   27,500 D $ 1.48 557,059 D  
Common Stock 07/07/2010   S(1)   10,038 D $ 1.47 547,021 D  
Common Stock 07/07/2010   S(1)   83,097 D $ 1.45 463,924 D  
Common Stock 07/07/2010   S(1)   74,365 D $ 1.46 389,559 D  
Common Stock 07/07/2010   S(1)   5,000 D $ 1.5 384,559 D  

Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.
Persons who respond to the collection of information contained in this form are not required to respond unless the form displays a currently valid OMB control number. SEC 1474 (9-02)

Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned
(e.g., puts, calls, warrants, options, convertible securities)
1. Title of Derivative Security
(Instr. 3)		 2. Conversion or Exercise Price of Derivative Security 3. Transaction Date (Month/Day/Year) 3A. Deemed Execution Date, if any (Month/Day/Year) 4. Transaction Code
(Instr. 8)		 5. Number of Derivative Securities Acquired (A) or Disposed of (D)
(Instr. 3, 4, and 5)		 6. Date Exercisable and Expiration Date
(Month/Day/Year)		 7. Title and Amount of Underlying Securities
(Instr. 3 and 4)		 8. Price of Derivative Security
(Instr. 5)		 9. Number of Derivative Securities Beneficially Owned Following Reported Transaction(s)
(Instr. 4)		 10. Ownership Form of Derivative Security: Direct (D) or Indirect (I)
(Instr. 4)		 11. Nature of Indirect Beneficial Ownership
(Instr. 4)
Code V (A) (D) Date Exercisable Expiration Date Title Amount or Number of Shares
Non-Qualified Stock Option (right to buy) $ 0.92 07/07/2010   M(1)     200,000 02/10/2010(2) 02/10/2019 Common Stock 200,000 $ 0 0 D  
Incentive Stock Option (right to buy) $ 1.09             02/08/2009(3) 02/08/2018 Common Stock 366,972   366,972 D  
Incentive Stock Option (right to buy) $ 1.45             02/09/2011(4) 02/09/2020 Common Stock 68,965   68,965 D  
Non-Qualified Stock Option (right to buy) $ 1.09             02/08/2009(4) 02/08/2018 Common Stock 300,028   300,028 D  
Non-Qualified Stock Option (right to buy) $ 1.45             02/09/2011(4) 02/09/2020 Common Stock 531,035   531,035 D  

Reporting Owners

Reporting Owner Name / Address Relationships
 Director  10% Owner  Officer  Other
Hudson Leslie
3450 MONTE VILLA PARKWAY, SUITE 101
BOTHELL, WA 98021		       Former CEO Former CEO

Signatures

 By: Melinda Miles For: Dr. Leslie Hudson   07/08/2010
**Signature of Reporting Person Date

Explanation of Responses:

* If the form is filed by more than one reporting person, see Instruction 4(b)(v).
** Intentional misstatements or omissions of facts constitute Federal Criminal Violations. See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
(1) This transaction was a Same Day Sale. The optionholder exercised 200,000 non-qualified options and the shares were sold on the same day.
(2) The original 333,000 option grant vested 1/3 each year over 3 years. On 4/20/2010, the option had 116,667 fully vested shares and the Company approved a vesting acceleration of the remaining 233,333 shares.
(3) Option Grant vests 25% per year on grant date with all shares vesting four years from date of grant.
(4) The Stock Option Grant vest as follows: 1/3 vest one year from date of grant and 1/3 each year thereafter until all shares vest three years from grant date.

Note: File three copies of this Form, one of which must be manually signed. If space is insufficient, see Instruction 6 for procedure.

Potential persons who are to respond to the collection of information contained in this form are not required to respond unless the form displays a currently valid OMB number.