Restructured majority of convertible notes due June 2008
Reduced net operating expenses going forward
Projects Zevalin(R) net sales revenues of $15 million in 2008
SEATTLE, March 13 /PRNewswire-FirstCall/ -- Seattle-Cell Therapeutics, Inc. (CTI) (Nasdaq: CTIC; MTA) today reported recent accomplishments and financial results for the quarter and twelve months ended December 31, 2007.
Announced completion of Zevalin(R) (Ibritumomab Tiuxetan) acquisition from Biogen Idec for an upfront payment of $10.1 million and initiated building Zevalin sales, marketing, and medical affairs infrastructure
Raised $14.8 million in aggregate gross proceeds through the issuance of common and preferred stock and warrants; raised $51.7 million in an offering of 9% Senior Convertible Notes due 2012; of which $16.2 million was used to induce the conversion of $21.5 million of outstanding Series A,B,C, and D convertible preferred securities to common stock
Restructured approximately 81 percent of the convertible notes due in June 2008, reducing total due in 2008 from $55.9 million to $10.7 million
Reduced expected net operating expenses by 35%, targeting $77 million in net cash operating expenses in 2008, by focusing resources on reaching $15 million in net Zevalin revenues, pursuing European marketing authorization (MAA) for XYOTAX (paclitaxel poliglumex, CT-2103), preparing for a potential U.S. marketing application (NDA) for pixantrone (BBR 2778) in 2009, and supporting the advancement of brostallicin
"Now that we have made significant progress on our strategy of simplifying our capital structure, reducing operating expenses, and shifting our resources to near-term opportunities, we believe we are in a much stronger position to increase revenues, execute our late-stage clinical programs, and create value for our shareholders and patients," said James A. Bianco, M.D., President and CEO of CTI. "With our financial restructuring and strategic realignment completed, we can focus on commercializing Zevalin and developing our late- stage product pipeline."
For the quarter ended December 31, 2007, CTI reported a net loss attributable to common shareholders of $39.1 million ($0.74 per share) compared to a net loss attributable to common shareholders of $35.6 million ($1.00 per share) for the same period in 2006.
For the year ended December 31, 2007, CTI posted a net loss attributable to common shareholders of $148.3 million ($3.27 per share), which includes $24.6 million in acquired in-process research and development expense associated with the acquisitions of Systems Medicine and Zevalin. The acquired in-process research and development charge is primarily a non-cash expense. This compares to a net loss attributable to common shareholders of $135.8 million ($4.84 per share) for the same period in 2006. In 2007, CTI recorded make-whole interest expense of $2.3 million compared to $24.8 million in 2006, which was primarily related to conversions of our 6 3/4% convertible notes during 2006.
The Company ended the year with cash and cash equivalents, securities available-for-sale and interest receivable of approximately $18.4 million. In January 2008, CTI sold shares to Societe Generale, pursuant to the Step-Up Equity Financing Agreement, for gross proceeds of approximately $1.27 million. In March 2008, CTI raised approximately $35.5 million in gross proceeds from the sale of convertible senior notes after taking into consideration $16.2 million paid as a conversion inducement to preferred securities holders, which eliminated $21.5 million of redeemable preferred stock.
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.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 include statements about future sales of Zevalin, reducing
net operating expenses in 2008, and the development of XYOTAX, pixantrone,
and brostallicin, which include risks associated with preclinical and
clinical developments in the biopharmaceutical industry in general and with
XYOTAX, 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, XYOTAX, 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.
|SOURCE Cell Therapeutics, Inc.|
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