CTI Receives the Second Payment of $6.5 million Associated with the Sale of Interest in Zevalin Joint Venture
06 April 2009 - 3:30PM
PR Newswire (US)
SEATTLE, April 6 /PRNewswire-FirstCall/ -- Cell Therapeutics, Inc.
(CTI) (Nasdaq and MTA: CTIC) announced today that it received $6.5
million from Spectrum Pharmaceuticals, Inc. (Spectrum) in
connection with the sale of its 50% interest in the Zevalin joint
venture to Spectrum for approximately $16.5 million that closed in
March 2009. CTI previously received approximately $6.5 million on
March 2, 2009, related to this transaction, and the remaining $3.5
million, subject to adjustments for expenses and revenues, among
other things, is to be received on April 15, 2009. CTI sold an
initial 50% interest in Zevalin to Spectrum in connection with the
establishment of a 50/50 owned joint venture with Spectrum for
approximately $15 million in December 2008, bringing total gross
funds that will be received from Spectrum for 100% interest in
Zevalin to approximately $31.5 million. CTI originally purchased
Zevalin from Biogen Idec Inc. in December 2007 for $10 million
(plus certain milestone payments, all of which will be the
responsibility of Spectrum if or when they come due). "In this
difficult capital market we are pleased to have access to this
non-dilutive operating capital as we advance our products through
the regulatory process to approval and commercialization," said
James A. Bianco, M.D., CEO of Cell Therapeutics. "We will continue
to seek product partnerships and other sources of financing to fund
our ongoing operations that in addition to our efforts reducing in
expenses will ultimately drive shareholder value." 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.celltherapeutics.com/. Sign up for email alerts and get
RSS feeds at our Web site,
http://www.celltherapeutics.com/news_subscription_service 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 that could affect the
ongoing development of the Company's products such as pixantrone
and OPAXIO include risks associated with preclinical and clinical
developments in the biopharmaceutical industry in general and with
such products in particular including, without limitation, the
Company's ability to identify and negotiate product partnerships,
the Company's ability to raise additional capital to continue to
fund its operations, the potential failure of pixantrone to prove
safe and effective for treatment of relapsed aggressive NHL as
determined by the FDA, other determinations by regulatory, patent
and administrative governmental authorities, competitive factors,
technological developments, and costs of developing, producing and
selling such products 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:
http://www.celltherapeutics.com/press_room Investors Contact: Ed
Bell T: 206.282.7100 Lindsey Jesch Logan T: 206.272.4347 F:
206.272.4434 E: http://www.celltherapeutics.com/investors
DATASOURCE: Cell Therapeutics, Inc. CONTACT: Media, Dan Eramian, T:
+1-206-272-4343, C: +1-206-854-1200, E: ,
http://www.celltherapeutics.com/press_room; or Investors, Ed Bell,
T: +1-206-282-7100, or Lindsey Jesch Logan, T: +1-206-272-4347, F:
+1-206-272-4434, E: , http://www.celltherapeutics.com/investors Web
Site: http://www.celltherapeutics.com/
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