SEATTLE, May 8 /PRNewswire-FirstCall/ -- Cell Therapeutics, Inc. (CTI) reported financial results for the quarter ended March 31, 2008. Total revenues for the quarter were $3.4 million compared to $20,000 for the first quarter of 2007. Gross product sales of Zevalin(R) (Ibritumomab Tiuxetan) reached $3.8 million in the first quarter of 2008.
Total operating expenses increased to $28.4 million for the quarter ended March 31, 2008 compared to $23.6 million for the same period in 2007 mainly as a result of increased expenses related to the creation of commercial infrastructure to support Zevalin and fees associated with capital structure advisory services. Net loss attributable to common shareholders for the quarter ended March 31, 2008, which includes a one-time inducement payment of $16.2 million to convert preferred shares into common shares, totaled $54.6 million ($0.77 per share) compared to $28.7 million ($0.76 per share) for the comparable period in 2007. The increase in net loss attributable to common shareholders was also due, in part, to an increase in interest expense and make-whole interest payments related to the 9% convertible senior notes and the loss recorded on the exchange of the 5.75% convertible senior subordinated and subordinated notes in 2008. This was offset by a gain on the derivative liability related to conversions of the 9% convertible senior notes. We also had a foreign exchange loss for the quarter ended March 31, 2008 compared to a gain for the same period in 2007.
The Company had approximately $15.3 million in cash and cash equivalents, securities available-for-sale, and interest receivable as of March 31, 2008. This does not include $6.2 million in restricted cash held in escrow and net proceeds, before fees and expenses, of approximately $22.9 million from the issuance on April 30, 2008 of preferred stock, convertible notes, and warrants. The Company also expects to receive an additional $5 million in gross proceeds from an additional sale of securities to the purchaser of the Series E preferred stock and 13.5% convertible senior notes prior to July 4, 2008, provided adequate shares are available for issuance of such securities at that time.
"In the second quarter we expect to see the positive financial impact of our strategy to focus resources on our late-stage development products and growing Zevalin sales. With our commercial team now in place to support Zevalin, we expect revenues to continue to increase over the next few quarters," said James A. Bianco, M.D., President and CEO of CTI. "In addition, over the last two quarters, we have been successful in cleaning up our balance sheet, retiring or exchanging approximately 74 percent of current debt and preferred securities. With the majority of the investments in OPAXIO and pixantrone behind us we look forward to the review of the MAA for OPAXIO and to final results of the pixantrone pivotal trial."
Conference Call Information
On Thursday, May 8, 2008, at 8:30 a.m. Eastern/2:30 p.m. Central European/5:30 a.m. Pacific members of Cell Therapeutics, Inc.'s (CTI) management team will host a quarterly conference call to discuss the company's 2008 first quarter achievements and financial results.
Live audio webcast at http://www.celltherapeutics.com will be archived for post listening approximately two hours after call ends.
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 http://www.CellTherapeutics.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 sales of Zevalin, reducing net operating expenses in 2008, the closing of an additional financing prior to July 4, 2008, the availability of adequate shares for future financings, and the development of OPAXIO, pixantrone, and brostallicin, which include risks associated with preclinical and clinical developments in the biopharmaceutical industry in general and with OPAXIO, 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 Zevalin, OPAXIO, pixantrone, and brostallicin, the Company's ability to continue to raise capital as needed to fund its operations, 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.
CONTACT: Media, Dan Eramian, +1-206-272-4343, mobile, +1-206-854-1200,
media@ctiseattle.com, or Investors, Leah Grant, +1-206-282-7100, fax,
+1-206-272-4434, invest@ctiseattle.com, both of Cell Therapeutics, Inc.
Web site: http://www.cticseattle.com/
