Spin-off would reduce CTI burn rate by $14 million
SEATTLE, Feb. 6 /PRNewswire-FirstCall/ -- Cell Therapeutics, Inc. (CTI) (Nasdaq and MTA: CTIC) announced today that it has engaged the services of a strategic advisory consulting firm, Adjuvant Global Advisors, LLC, (Adjuvant) to assist in developing strategic options for a partnership, asset divestment or joint venture for Cell Therapeutics Europe Sede Secondaria (CTE), the preclinical drug development arm of CTI, in Bresso, Milan. The move is designed to narrow the focus of CTI's business plan, reducing its burn rate by $14 million as it also maintains the mission and workforce of the Bresso facility.
"As CTI transitions from a research-based operation to a commercial drug company, it has been transferring resources to its U.S. sales and marketing operations," said James A. Bianco, M.D., CEO of CTI. "As we have previously announced, we are refocusing our resources on late-stage and marketed products, and as such, CTI needs to reduce its preclinical operations."
Adjuvant's role will be to seek out a potential buyer or partner for the Bresso facility, with the aim of identifying organizations that want to expand with an intact and integrated preclinical team.
"Bresso is an acquisition opportunity for clinical research organizations or pharmaceutical companies to acquire a productive GLP compliant research and development asset that has a proven track record in advancing molecules from discovery to clinic," said Christina Waters, Ph.D., M.B.A., President, CTE and Systems Medicine LLC.
The Bresso personnel have worked together in oncology for many years and offer fully-integrated services ranging from Target discovery, Lead discovery and optimization, Preclinical development (non-GLP/GLP), along with preclinical activities supporting Clinical development (Phase I - Phase III, and Regulatory (EU/USA). The organization is comprised of approximately 50 experienced Ph.D. scientists, laboratory equipment and facilities. There is also available an existing pipeline of internal drug development projects which range from Phase II compounds to preclinical discovery programs.
In addition, "CTI hopes to continue to work with the Bresso facility on contract project work and support of existing CTI pipeline projects as part of the terms of any acquisition or other business arrangement," Waters concluded.
The Bresso facility was formerly NovusPharma, a spin out of Roche/Boehringer Mannheim, which CTI acquired in 2004.
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.CellTherapeutics.com.
Sign up for email alerts and get RSS feeds at our Web site, http://www.CellTherapeutics.com/investors_news.htm
About Adjuvant Global Advisors, LLC
Adjuvant Global Advisors is a strategic advisory firm serving a global pharmaceutical and biotechnology clientele. Its management team consists of scientific and business development experts with significant operational and transaction experience in the drug discovery and development industry. Adjuvant leverages a global industry network and expertise in regulatory, reimbursement, valuation and financial modeling strategies to rapidly develop strategic partnering and licensing options for clinical and preclinical programs. Adjuvant also advises on the repositioning of secondary assets and the promotion and positioning of novel discovery platforms. The firm maintains offices in Bethesda, MD and San Jose, CA. For more information about Adjuvant Global Advisors, please visit www.adjuvant.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 that the Company may not be successful in identifying or completing a partnership, asset divestiture or joint venture with respect to the Bresso facility, the Company may not be successful in reducing its cash burn rate, the Company continues to have negative cash flow and a significant amount of debt outstanding and will need to raise additional capital 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.
Media Contact: Dan Eramian T: 206.272.4343 C: 206.854.1200 E: email@example.com www.CellTherapeutics.com/press_room Investors Contact: Ed Bell T: 206.272.4345 Lindsey Jesch T: 206.272.4347 F: 206.272.4434 E: firstname.lastname@example.org www.CellTherapeutics.com/investors Adjuvant Contact: Ravi Kiron, PhD, MBA Managing Director Adjuvant Global Advisors, LLC T: 408.238.3398 C: 650.224.3836 E: email@example.com www.adjuvant.com
|SOURCE Cell Therapeutics, Inc.|
Copyright©2009 PR Newswire.
All rights reserved