SEATTLE, Aug. 8 /PRNewswire-FirstCall/ -- Cell Therapeutics, Inc. (CTI) reported financial results for the quarter and six months ended June 30, 2007. Net loss attributable to common shareholders for the quarter totaled $27.9 million ($0.65 per share) compared to a net loss attributable to common shareholders of $20.5 million ($0.78 per share) for the same quarter in 2006. For the six months ended June 30, CTI posted a net loss attributable to common shareholders of $56.6 million ($1.41 per share) compared to $72.4 million ($2.97 per share) in 2007 and 2006, respectively. The net loss attributable to common shareholders for the six months ended June 30, 2006 included $24.5 million in make-whole interest expense as well as an $8.0 million gain on the exchange of convertible notes.
The Company ended the quarter with $43.8 million in cash and cash equivalents, securities available-for-sale, and interest receivable before taking into account the $20.25 million in gross proceeds received from our Series C financing in July.
"The recent acquisition of Systems Medicine, Inc. (SMi) is the first of two steps in strengthening our product pipeline and repositioning CTI to enter the commercial oncology market," said James A. Bianco, M.D., President and CEO of CTI. "We are on track for completing the second step, acquiring a marketed product to re-establish our commercial efforts in the blood-related cancer market as well as hiring an industry veteran to lead our commercial operations, this quarter."
Recent Events -- Announced acquisition of SMi, leveraging SMi's partnerships and systems biology approach to cancer therapy, bringing renowned cancer drug development expertise and industry veterans to CTI, and adding a phase II drug candidate, Brostallicin, to CTI's pipeline -- Raised approximately $37.2 million in gross proceeds from the sale of Series B 3% Convertible Preferred Stock and warrants -- Announced interim results of pixantrone combination therapy, known as CPOP-R, in the RAPID (PIX203) clinical trial, which demonstrated effectiveness equivalent to standard therapy with reduced severe toxicities, including heart damage, compared to the CHOP-R treatment regimen -- Reported that XYOTAX(TM) (paclitaxel poliglumex, CT-2103) is more cost effective with fewer side effects compared to gemcitabine or vinorelbine and on the impact of estradiol in non-small cell lung cancer clinical trials at the 2007 Annual Meeting of the American Society of Clinical Oncology (ASCO) -- Announced the appointment of former Amgen-Immunex executives to the management team of its Aequus BioPharma, Inc. subsidiary -- Obtained authorization of share increase at special meeting of shareholders in April
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 risks and uncertainties include statements about future financial and operating results that could affect the development of XYOTAX, pixantrone, and Brostallicin include risks associated with preclinical and clinical developments in the biopharmaceutical industry in general and with XYOTAX, pixantrone, and Brostallicin, in particular including, without limitation, the potential failure of these product candidates to prove safe and effective for treatment of non-small cell lung cancer, ovarian cancer, non-Hodgkin's lymphoma, and sarcoma, determinations by regulatory, patent and administrative governmental authorities, competitive factors, technological developments, costs of developing, producing and selling XYOTAX, pixantrone, and Brostallicin, 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 Italian law, 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.
Media Contact: Dan Eramian T: 206.272.4343 C: 206.854.1200 Susan Callahan T: 206.272.4472 F: 206.272.4434 E: media@ctiseattle.comwww.cticseattle.com/media.htm Investors Contact: Leah Grant T: 206.282.7100 F: 206.272.4434 E: invest@ctiseattle.comwww.cticseattle.com/investors.htm Cell Therapeutics, Inc. Condensed Consolidated Statements of Operations (In thousands, except for per share amounts) (unaudited) Three Months Ended Six Months Ended June 30, June 30, 2007 2006 2007 2006 Revenues: License and contract revenue $20 $20 $40 $40 Total revenues 20 20 40 40 Operating expenses: Research and development 16,516 15,164 31,802 30,928 Selling, general and administrative 7,590 8,199 15,720 18,762 Amortization of purchased intangibles 212 199 419 388 Total operating expenses 24,318 23,562 47,941 50,078 Loss from operations (24,298) (23,542) (47,901) (50,038) Other income (expense): Investment and other income 738 694 1,441 1,236 Interest expense (3,678) (4,708) (7,594) (13,336) Foreign exchange gain 387 821 834 1,112 Make-whole interest expense - (4,374) (2,310) (24,540) Gain on derivative liabilities 906 2,659 3,614 6,083 Gain on exchange of convertible notes - 7,978 - 7,978 Settlement expense (17) - (160) (883) Net loss (25,962) (20,472) (52,076) (72,388) Preferred stock beneficial conversion feature (1,789) - (4,383) - Preferred stock dividends (150) - (181) - Net loss attributable to common shareholders $(27,901) $(20,472) $(56,640) $(72,388) Basic and diluted net loss per common share $(0.65) $(0.78) $(1.41) $(2.97) Shares used in calculation of basic and diluted net loss per common share (1) 42,713 26,150 40,165 24,335 Balance Sheet Data: (amounts in thousands) June 30, December 31, Cash and cash equivalents, securities 2007 2006 available-for-sale (unaudited) and interest receivable $43,802 $54,407 Working capital (21,427) 30,166 Total assets 89,581 101,821 Convertible debt 150,017 166,178 Accumulated deficit (1,017,748) (961,108) Shareholders' deficit (102,081) (101,604) (1) Amounts reflect a one-for-four reverse stock split of our common stock effective April 15, 2007.
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 Investors, Leah Grant, +1-206-282-7100, or fax,+1-206-272-4434, or invest@ctiseattle.com, all of Cell Therapeutics
Web site: http://www.cticseattle.com//
