Cell Therapeutics reports financial results for the third quarter and nine months ended September 30, 2009

Nov 5 2009

Cell Therapeutics, Inc. (CTI) (Nasdaq and MTA: CTIC) today reported recent achievements and financial results for the third quarter and nine months ended September 30, 2009, which included a 45% decrease in the net loss attributable to common shareholders for the nine month period in 2009 compared to the same period in 2008. The Company had approximately $55.0 million in cash and cash equivalents as of September 30, 2009.

"While we have started to prepare for the launch of pixantrone in 2010 with the recruitment of key commercial personnel and conducting important market research, we remained focused on tight fiscal controls while continuing to clean-up our balance sheet," said James A. Bianco, M.D., CEO of the Company. "We are pleased with our continued financial progress demonstrating a decrease in net loss of 45% for the nine months in 2009 compared to the same period for 2008," noted Dr. Bianco. "With the recent developments and progress we are making in advancing pixantrone through its New Drug Application (NDA) review process we expect the next 3 to 6 months to be an exciting and transformative period for the Company."

Recent Highlights

• FDA accepted and filed for review the Company's NDA for pixantrone as treatment for relapsed or refractory aggressive non-Hodgkin's lymphoma (NHL).
• The Company initiated the process of obtaining marketing approval in Europe in July 2009, for the treatment of relapsed or refractory aggressive NHL.
• Further reduced debt through the exchange of $4.5 million principal in debt for common stock resulting in a total of $57.4 million principal reduction in debt through exchanges so far in 2009.
• Added to the NASDAQ OMX Global Biotechnology Index (Nasdaq: QGBI).

For the quarter ended September 30, 2009, total net operating expenses were approximately $27.1 million, compared to $20.5 million for the same period in 2008. Research and development expenses decreased by 33% to $7.6 million compared to $11.3 million for the same period in 2008. Net loss attributable to common shareholders was $48.8 million ($0.09 per share), compared to a net loss attributable to common shareholders of $47.6 million ($2.83 per share) for the same period in 2008. The net loss for the quarter ended September 30, 2009 included the following non-cash expenses: $11.4 million in equity-based compensation expense, $6.0 million in milestone payment modification expense and $13.8 million preferred stock deemed dividend expenses. Combined, these non-cash expenses totaled $31.2 million. The modification to the milestone expense relates to the agreement to issue $6.0 million of shares of the Company's common stock to Systems Medicine, Inc. shareholders, which replaced potential milestone payments of up to $15.0 million based certain FDA milestones for the Company's product candidate brostallicin.

For the nine months ended September 30, 2009, total net operating expenses decreased approximately 29% to $55.4 million, compared to $77.5 million for the same periods in 2008. The decrease is mainly a result of a 47% decrease in research and development expenses and a $10.2 million gain on the sale of the Company's remaining interest in a 50/50-owned joint venture with Spectrum Pharmaceuticals, Inc. in 2009. Net loss attributable to shareholders decreased 45% to $89.4 million ($0.21 per share), compared to a net loss attributable to shareholders of $161.6 million ($13.68 per share) for the same period in 2008.

Source: Cell Therapeutics, Inc.