SEATTLE, March 15 /PRNewswire-FirstCall/ -- Cell Therapeutics, Inc. (CTI) reported financial results for the quarter and year ended December 31, 2006. Total revenues for the quarter were $20,000 compared to $1.2 million in the fourth quarter of 2005. CTI reported a net loss for the quarter of $35.6 million ($0.25 per share), which included $10.5 million in settlement expense related to an agreement in principle with the United States Attorney’s Office. This compares to a net loss of $18.7 million ($0.27 per share) for the same period in 2005, which included a $40.7 million gain in the quarter on the divestiture of TRISENOX(R) and a $23.6 million charge for the conversion of $38.4 million of the Company’s 4% and 5.75% convertible senior subordinated notes.
Total revenues for the year ended December 31, 2006, were $80,000 compared to $16.1 million in 2005. For the year, CTI posted a net loss of $135.8 million ($1.21 per share), which included $11.4 million in settlement expenses. This compares to a net loss of $102.5 million ($1.59 per share), which included a $71.2 million gain for the year on the divestiture of TRISENOX as well as the $23.6 million charge for the conversion of notes.
Revenues for the year ended December 31, 2006 were lower as compared to the same period in 2005 as a result of the divestiture of TRISENOX to Cephalon in July 2005. The Company ended the year with cash, cash equivalents, securities available-for-sale and interest receivable of approximately $54.4 million. In February 2007, the Company closed an offering of preferred stock for gross proceeds of approximately $20 million.
“Surviving phase III disappointments in biotech is no easy accomplishment and requires reinventing the Company, its strategy, and financing instruments. We have come a long way since March 2005 and we are repositioning the Company to reach potential product milestones and evaluate several new product acquisitions that could allow us to re-enter the blood-related cancer market,” stated James A. Bianco, M.D., President and CEO of CTI.
2006 Highlights -- Announced an exclusive worldwide licensing agreement with Novartis for up to $405 million for XYOTAX(TM) and pixantrone, including a $15 million equity investment in CTI -- Strengthened balance sheet by raising $85 million in gross proceeds, establishing a euro 60 million equity facility with Societe Generale, and converting, exchanging, or repurchasing $172 million of existing debt since November 2005 -- Reported the dismissal of the shareholder class action lawsuit and the dismissal of the shareholder derivative lawsuit -- Announced that the Company understands and believes that it has reached an agreement in principal with the Department of Justice to resolve their review of business practices related to TRISENOX for a single payment of $10.5 million in return for a release of all government claims with no admission of wrongdoing -- Appointed Frederick W. Telling, Ph.D., Vice President of Corporate Policy and Strategic Management for Pfizer Inc. to its board of directors -- Announced continuation of the EXTEND phase III trial of pixantrone for patients with relapsed, aggressive non-Hodgkin’s lymphoma who have received two or more prior therapies based on an interim analysis of 40 patients -- Presented preclinical and clinical data in November at the 18th Annual Meeting of EORTC-NCI-AACR showing the influence of estrogen on the antitumor efficacy, biodistribution, uptake, and metabolism of XYOTAX (paclitaxel poliglumex) and subsequent intracellular release of free paclitaxel -- Presented clinical data in December at the 48th Annual Meeting of the American Society of Hematology (ASH) on pixantrone in a FPD-R combination in indolent non-Hodgkin’s lymphoma (NHL) and in CPOP combination therapy in aggressive NHL -- Announced that the United States Patent and Trademark Office granted a patent, expiring in April 2022, for analogs of CT-45099, a new class of small molecule antitubulin agents with potent antiproliferative and tumor killing activity 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.cticseattle.com.
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 forward-looking statements contained in this press release include statements about future financial and operating results and risks and uncertainties that could affect the development of CTI’s products under development, including XYOTAX and pixantrone. These risks include, but are not limited to, preclinical, clinical, and sales and marketing developments in the biopharmaceutical industry in general, and in particular including, without limitation, the enrollment and completion of planned and ongoing clinical trials, the timely submission and review of regulatory applications for XYOTAX, the potential failure of XYOTAX to prove safe and effective for or to be approved for use in the treatment of non-small cell lung and ovarian cancers, the potential failure of pixantrone to prove safe and effective for relapsed aggressive non-Hodgkin’s lymphoma, determinations by regulatory, patent and administrative governmental authorities, competitive factors, technological developments, costs of developing, producing and selling CTI’s products under development, 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. CTI is under no obligation to (and expressly disclaims any such obligation to) update or alter its forward-looking statements whether as a result of new information, future events, or otherwise.
Cell Therapeutics, Inc. Condensed Consolidated Statements of Operations (in thousands, except for per share amounts) Three Months Ended Year Ended Dec. 31, Dec. 31, 2006 2005 2006 2005 Revenues: Product sales $-- $-- $-- $14,599 License and contract revenue 20 1,193 80 1,493 Total revenues 20 1,193 80 16,092 Operating expenses: Cost of product sold -- -- -- 518 Research and development 16,623 13,185 61,994 68,767 Selling, general and administrative 7,851 12,242 35,303 61,717 Amortization of purchased intangibles 204 523 792 1,254 Restructuring charges and related asset impairments 224 5,731 591 12,780 Gain on divestiture of TRISENOX -- (40,711) -- (71,211) Total operating expenses (income) 24,902 (9,030) 98,680 73,825 Income (loss) from operations (24,882) 10,223 (98,600) (57,733) Other income (expense): Investment and other income, net 1,023 1,262 2,866 2,588 Interest expense (2,941) (5,704) (19,829) (16,546) Foreign exchange gain (loss) 880 (90) 1,877 8 Make-whole interest expense -- (1,013) (24,753) (1,013) Debt conversion expense -- (23,608) -- (23,608) Gain on derivative liabilities 820 236 6,024 236 Gain on exchange of convertible notes -- -- 7,978 -- Settlement expense (10,499) -- (11,382) -- Loss on extinguishment of royalty obligation -- -- -- (6,437) Net loss $(35,599) $(18,694) $(135,819) $(102,505) Basic and diluted net loss per share $(0.25) $(0.27) $(1.21) $(1.59) Shares used in calculation of basic and diluted net loss per share 142,405 68,018 112,283 64,553 Balance Sheet Data: (amounts in thousands) December 31, 2006 2005 Cash and cash equivalents, securities available-for-sale and interest receivable $54,407 $69,067 Restricted cash -- 25,596 Working capital 30,166 76,288 Total assets 101,821 155,440 Convertible debt 166,178 230,765 Accumulated deficit (961,108) (825,289) Shareholders’ deficit (101,604) (107,097)
Cell Therapeutics, Inc.
CONTACT: media, Dan Eramian, +1-206-272-4343, or cell, +1-206-854-1200, orSusan Callahan, +1-206-272-4472, or fax, +1-206-272-4434, ormedia@ctiseattle.com, or www.cticseattle.com/media.htm, or investors, LeahGrant, +1-206-282-7100, or fax, +1-206-272-4434, or invest@ctiseattle.com,or www.cticseattle.com/investors.htm, all of Cell Therapeutics, Inc.
Web site: http://www.cticseattle.com//
