SEATTLE, Nov. 14 /PRNewswire-FirstCall/ -- Cell Therapeutics, Inc. (CTI) reported financial results for the third quarter ended September 30, 2005. Total revenues for the quarter were $1.3 million, including TRISENOX(R) net sales of $1.2 million, which were recorded prior to the closing of the divestiture to Cephalon on July 18. CTI reported a net loss for the quarter of $8.5 million ($0.13 per share), after giving effect to a gain of $30.5 million on TRISENOX divestiture, compared to a net loss of $34.9 million ($0.62 per share) for the same period in 2004. The Company ended the quarter with approximately $41 million in cash and cash equivalents, securities available-for-sale, and interest receivable.
“We are pleased to see the positive impact our refocusing efforts are having on both cost reductions and the efficiency of our operations in our Seattle and Bresso facilities. The Company is focused on our regulatory filings for XYOTAX and advancing pixantrone to the phase III interim analysis, two important milestones for CTI in 2006,” stated James A. Bianco, M.D., President and CEO of CTI. “With a reduced burn rate, achievable development goals, and a strengthened balance sheet, this has been a very productive quarter.”
Recent Highlights * Completed the divestiture of TRISENOX to Cephalon for approximately $68 million in cash, subject to a working capital adjustment, or approximately $28 million after repayment of the amount owed to PharmaBio Development, Inc., plus up to an additional $100 million in potential future sales and regulatory milestones * Completed an $82 million convertible senior notes offering and retired $38.4 million of outstanding 5.75% and 4% convertible senior subordinated notes through an equity exchange * Appointed Stonefield Josephson, Inc. as independent registered public accounting firm * Appointed John Bauer, Former Nintendo of America, Inc. Executive Vice President of Finance, as new board member and Chair of the Company’s Audit Committee and appointed Phil Nudelman as Chairman of the Board * Announced XYOTAX patent allowance in Japan, which will provide exclusivity until 2018 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 that could affect the development of XYOTAX and pixantrone include risks associated with preclinical and clinical developments in the biopharmaceutical industry in general and with XYOTAX and pixantrone in particular including, without limitation, the potential failure of XYOTAX to prove safe and effective or be approved for treatment of non-small cell lung cancer, the potential failure of pixantrone to prove safe and effective for treatment of relapsed, aggressive non-Hodgkin’s lymphoma, determinations by regulatory, patent and administrative governmental authorities, competitive factors, technological developments, costs of developing, producing and selling XYOTAX and pixantrone, 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. Consolidated Statements of Operations (In thousands, except for per share amounts) Three Months Ended Nine Months Ended September 30, September 30, 2005 2004 2005 2004 Revenues: Product sales $1,190 $8,424 $14,599 $20,224 License and contract revenue 101 245 300 1,240 Total revenues 1,291 8,669 14,899 21,464 Operating expenses: Cost of product sold 60 430 518 858 Research and development 13,340 20,607 55,582 73,287 Selling, general and administrative 12,500 18,546 49,475 58,414 Acquired in-process research and development -- -- -- 88,120 Amortization of purchased intangibles 236 569 731 1,716 Restructuring charges and asset impairments 5,077 -- 7,049 -- Gain on divestiture of TRISENOX (30,500) -- (30,500) -- Total operating expenses 713 40,152 82,855 222,395 Income (Loss) from operations 578 (31,483) (67,956) (200,931) Other income (expense): Investment and other income 414 375 1,326 1,255 Interest expense (2,955) (2,720) (10,842) (8,148) Foreign exchange gain (loss) (104) (1,081) 98 (937) Loss on extinguishment of royalty obligation (6,437) -- (6,437) -- Other expense, net (9,082) (3,426) (15,855) (7,830) Net loss $(8,504) $(34,909) $(83,811) $(208,761) Basic and diluted net loss per share $(0.13) $(0.62) $(1.32) $(4.03) Shares used in calculation of basic and diluted net loss per share 63,515 56,204 63,385 51,820 Balance Sheet Data: (amounts in thousands) Sept. 30, Dec. 31, 2005 2004 Cash and cash equivalents, securities available-for-sale and interest receivable $40,973 $116,020 Working capital (1) (5,273) 95,542 Total assets 102,759 184,996 Convertible debt 190,099 190,099 Accumulated deficit (806,595) (722,784) Shareholders’ deficit (155,071) (70,708) (1) Includes $39.0 million deferred gain related to the divestiture of TRISENOX and certain proteasome assets.
Cell Therapeutics, Inc.
CONTACT: investors, Leah Grant, +1-206-282-7100, or invest@ctiseattle.com,or media, Susan Callahan, +1-206-272-4472, or media@ctiseattle.com, both ofCell Therapeutics, Inc., fax, +1-206-272-4434
Web site: http://www.cticseattle.com/
