Cell Therapeutics, Inc. (CTI) Readies Pixuvri® European Launch and Start of Pacritinib Phase 3 Trial; Reports Second …

SEATTLE, Aug. 1, 2012 /PRNewswire/ --Cell Therapeutics, Inc. ("CTI" or the "Company") (NASDAQ and MTA: CTIC) today reported financial results and recent accomplishments for the second quarter of 2012.

Recent Company Highlights

"Based on in-market research among more than 250 lymphoma specialists in the five major market countries in the European Union ("EU"), we are encouraged by the interest and potential adoption of Pixuvri for treatment," stated James A. Bianco, M.D., President and CEO of CTI. "We believe we can present an argument for Pixuvri to provide fair pricing reimbursement in an effort to address the commercial potential of Pixuvri in the E.U. On the heels of our projected fourth quarter launch of Pixuvri in the E.U., we expect to start pivotal studies of our recent JAK2 product acquisition, pacritinib. In the meantime, we are also advancing tosedostat toward its phase 3 clinical trial."

Financial Results

For the quarter endedJune 30, 2012, total operating expenses were$49.4 millioncompared to$16.9 millionfor the same period in 2011. The increase is predominantly due to an acquired in-process research and development expense of $29.1 million relating primarily to the acquisition of pacritinib from S*BIO Pte Ltd. ("S*BIO"), in addition to equity-based compensation and expenses related to preparation for commercialization of Pixuvri in the E.U. Net loss attributable to common shareholders was$58.6 million($0.28per share) for the quarter endedJune 30, 2012 compared to a net loss attributable to common shareholders of$22.5 million($0.14per share) for the same period in 2011. The increase in net loss attributable to CTI's common shareholders is primarily due to an increase in non-cash deemed dividends on preferred stock issuances and operating expenses, which includes the acquisition of pacritinib from S*BIO.

For the six months endedJune 30, 2012, total operating expenses were$67.5 millioncompared to$37.0 millionfor the same period in 2011. Net loss attributable to common shareholders was$76.0 million($0.37per share) for the six months endedJune 30, 2012 compared to a net loss attributable to common shareholders of$73.5 million($0.47per share) for the same period in 2011. The increase in net loss attributable to CTI's common shareholders is primarily due to an increase in total operating expenses, which includes the acquisition of pacritinib from S*BIO.

CTI had approximately$14.8 million in cash and cash equivalents as ofJune 30, 2012. This amount was before the receipt of$15 millionin gross proceeds received from the sale of CTI's Series 15-2 convertible preferred stock and warrants inJuly 2012 as part of a $35 million financing. As previously announced, CTI completed the first closing of $20 million of Series 15-1 convertible preferred stock and warrants in May 2012.

Conference Call Information

On Aug. 1, 2012, at 8:30 a.m. Eastern/2:30 p.m. Central European/5:30 a.m. Pacific Time, members of CTI's management team will host a conference call to discuss CTI's 2012 second quarter financial results.

Conference Call Numbers Aug. 1, 2012, at 8:30 a.m. Eastern/2:30 p.m. Central European/5:30 a.m. Pacific Time 1-877-941-6010 (US Participants) 1-480- 629-9644 (International)

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Cell Therapeutics, Inc. (CTI) Readies Pixuvri® European Launch and Start of Pacritinib Phase 3 Trial; Reports Second ...