In the news release, Cell Therapeutics, Inc. (CTI) (Nasdaq: CTIC; MTA)
Reports Recent Accomplishments and 2007 Fourth Quarter and Year End Financial
Results, issued earlier today by Cell Therapeutics, Inc. over PR Newswire, we
are advised by the company that the release contained additional tabular
material, originally issued inadvertently without the material. The additional
tabular material follows:
Cell Therapeutics, Inc.
Consolidated Statements of Operations
(In thousands, except for per share amounts)
(Unaudited)
Three Months Ended Year Ended
December 31, December 31,
2007 2006 2007 2006
Revenues:
Product sales 47 - 47 -
License and contract revenue 20 20 80 80
Total revenues 67 20 127 80
Operating expenses:
Cost of product sold 49 - 49 -
Research and development 21,651 16,623 72,019 61,994
Selling, general and
administrative 10,923 8,075 35,517 35,894
Acquired in-process research
and development 3,272 - 24,615 -
Amortization of purchased
intangibles 275 204 913 792
Total operating expenses 36,170 24,902 133,113 98,680
Loss from operations (36,103) (24,882) (132,986) (98,600)
Other income (expense):
Investment and other income 363 1,023 2,430 2,866
Interest expense (2,460) (2,941) (12,517) (19,829)
Foreign exchange gain 1,515 880 4,657 1,877
Make-whole interest expense - - (2,310) (24,753)
Gain on derivative
liabilities 54 820 3,672 6,024
Gain (loss) on exchange of
convertible notes (972) - (972) 7,978
Settlement expense - (10,499) (160) (11,382)
Net loss before minority
interest (37,603) (35,599) (138,186) (135,819)
Minority interest in net loss
of subsidiary 42 - 78 -
Net loss (37,561) (35,599) (138,108) (135,819)
Preferred stock beneficial
conversion feature (1,248) - (9,549) -
Preferred stock dividends (253) - (648) -
Net loss attributable to common
shareholders $(39,062) $(35,599) $(148,305) $(135,819)
Basic and diluted net loss per
common share $(0.74) $(1.00) $(3.27) $(4.84)
Shares used in calculation of
basic and diluted
net loss per common share (1) 52,469 35,601 45,292 28,070
Balance Sheet Data: (amounts in thousands)
December 31,
2007 2006
Cash and cash equivalents, securities (unaudited)
available-for-sale
and interest receivable $18,392 $54,407
Working capital (30,909) 30,166
Total assets 73,513 101,821
Convertible debt 137,396 166,178
Accumulated deficit (1,109,413) (961,108)
Shareholders' deficit (134,125) (101,604)
(1) Amounts reflect a one-for-four reverse stock split of our common stock
effective April 15, 2007.
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Cell Therapeutics, Inc. (CTI) Reports Recent Accomplishments and 2007 Fourth Quarter and Year End Financial Results
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.
Recent Events
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."
Financial Results
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.
Media Contact:
Dan Eramian
T: 206.272.4343
C: 206.854.1200
Susan Callahan
T: 206.272.4472
F: 206.272.4434
E: media@ctiseattle.com
http://www.cticseattle.com/media.htm
Investors Contact:
Leah Grant
T: 206.282.7100
F: 206.272.4434
E: invest@ctiseattle.com
http://www.cticseattle.com/investors.htm