SEATTLE, April 6 /PRNewswire-FirstCall/ -- Cell Therapeutics, Inc. (CTI) (Nasdaq and MTA: CTIC) announced today that it received $6.5 million from Spectrum Pharmaceuticals, Inc. (Spectrum) in connection with the sale of its 50% interest in the Zevalin joint venture to Spectrum for approximately $16.5 million that closed in March 2009. CTI previously received approximately $6.5 million on March 2, 2009, related to this transaction, and the remaining $3.5 million, subject to adjustments for expenses and revenues, among other things, is to be received on April 15, 2009. CTI sold an initial 50% interest in Zevalin to Spectrum in connection with the establishment of a 50/50 owned joint venture with Spectrum for approximately $15 million in December 2008, bringing total gross funds that will be received from Spectrum for 100% interest in Zevalin to approximately $31.5 million. CTI originally purchased Zevalin from Biogen Idec Inc. in December 2007 for $10 million (plus certain milestone payments, all of which will be the responsibility of Spectrum if or when they come due).
“In this difficult capital market we are pleased to have access to this non-dilutive operating capital as we advance our products through the regulatory process to approval and commercialization,” said James A. Bianco, M.D., CEO of Cell Therapeutics. “We will continue to seek product partnerships and other sources of financing to fund our ongoing operations that in addition to our efforts reducing in expenses will ultimately drive shareholder value.”
About Cell Therapeutics, Inc.
Headquartered in Seattle, CTI is a biopharmaceutical company committed to developing an integrated portfolio of oncology products aimed at making cancer more treatable. For additional information, please visit www.CellTherapeutics.com.
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This press release includes forward-looking statements that involve a number of risks and uncertainties, the outcome of which could materially and/or adversely affect actual future results. Specifically, the risks and uncertainties that could affect the ongoing development of the Company’s products such as pixantrone and OPAXIO include risks associated with preclinical and clinical developments in the biopharmaceutical industry in general and with such products in particular including, without limitation, the Company’s ability to identify and negotiate product partnerships, the Company’s ability to raise additional capital to continue to fund its operations, the potential failure of pixantrone to prove safe and effective for treatment of relapsed aggressive NHL as determined by the FDA, other determinations by regulatory, patent and administrative governmental authorities, competitive factors, technological developments, and costs of developing, producing and selling such products and the risk factors listed or described from time to time in the Company’s filings with the Securities and Exchange Commission including, without limitation, the Company’s most recent filings on Forms 10-K, 8-K, and 10-Q. Except as may be required by law, CTI does not intend to update or alter its forward-looking statements whether as a result of new information, future events, or otherwise.
Media Contact: Dan Eramian T: 206.272.4343 C: 206.854.1200 E: media@ctiseattle.com www.CellTherapeutics.com/press_room
Investors Contact: Ed Bell T: 206.282.7100 Lindsey Jesch Logan T: 206.272.4347 F: 206.272.4434 E: invest@ctiseattle.com www.CellTherapeutics.com/investors
