/C O R R E C T I O N -- Cell Therapeutics, Inc./
Cell Therapeutics, Inc. (CTI) Reports Recent Accomplishments and 2007 Fourth Quarter and Year End Financial Results
Restructured majority of convertible notes due June 2008Reduced net operating expenses going forwardProjects 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 andfinancial results for the quarter and twelve months ended December 31, 2007.
Announced completion of Zevalin(R) (Ibritumomab Tiuxetan) acquisition fromBiogen Idec for an upfront payment of $10.1 million and initiated buildingZevalin sales, marketing, and medical affairs infrastructure
Raised $14.8 million in aggregate gross proceeds through the issuance ofcommon and preferred stock and warrants; raised $51.7 million in an offeringof 9% Senior Convertible Notes due 2012; of which $16.2 million was used toinduce the conversion of $21.5 million of outstanding Series A,B,C, and Dconvertible preferred securities to common stock
Restructured approximately 81 percent of the convertible notes due in June2008, reducing total due in 2008 from $55.9 million to $10.7 million
Reduced expected net operating expenses by 35%, targeting $77 million innet cash operating expenses in 2008, by focusing resources on reaching $15million in net Zevalin revenues, pursuing European marketing authorization(MAA) for XYOTAX (paclitaxel poliglumex, CT-2103), preparing for a potentialU.S. marketing application (NDA) for pixantrone (BBR 2778) in 2009, andsupporting the advancement of brostallicin
"Now that we have made significant progress on our strategy of simplifyingour capital structure, reducing operating expenses, and shifting our resourcesto near-term opportunities, we believe we are in a much stronger position toincrease revenues, execute our late-stage clinical programs, and create valuefor our shareholders and patients," said James A. Bianco, M.D., President andCEO of CTI. "With our financial restructuring and strategic realignmentcompleted, we can focus on commercializing Zevalin and developing our late-stage product pipeline."
For the quarter ended December 31, 2007, CTI reported a net lossattributable 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 attributableto common shareholders of $148.3 million ($3.27 per share), which includes$24.6 million in acquired in-process research and development expenseassociated with the acquisitions of Systems Medicine and Zevalin. The acquiredin-process research and development charge is primarily a non-cash expense.This compares to a net loss attributable to common shareholders of $135.8million ($4.84 per share) for the same period in 2006. In 2007, CTI recordedmake-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 notesduring 2006.
The Company ended the year with cash and cash equivalents, securitiesavailable-for-sale and interest receivable of approximately $18.4 million. InJanuary 2008, CTI sold shares to Societe Generale, pursuant to the Step-UpEquity Financing Agreement, for gross proceeds of appr
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