News Out...
BusinessWire, Tuesday, May 05, 1998 at 08:41
SEATTLE--(BUSINESS WIRE)--May 5, 1998--Cell Therapeutics, Inc.
(NASDAQ:CTIC) today reported financial results for the first quarter
ended March 31, 1998.
The net loss for the period was approximately $6.2 million, or
$0.40 per share, compared to a net loss of approximately $5.6
million, or $0.57 per share, in the comparable period of 1997. A
greater number of shares were outstanding during the first quarter of
1998, reflecting the Company's follow-on offering in October 1997.
Cell Therapeutics, Inc. (cti) recorded approximately $3.3
million of revenues for the quarter ended March 31, 1998, from
development cost reimbursements under its collaboration agreement
with the R.W. Johnson Pharmaceutical Research Institute and Ortho
Biotech Inc., both Johnson & Johnson Companies. Johnson & Johnson is
cti's corporate partner for the development of lisofylline, the
Company's lead drug candidate. Revenues for the comparable quarter
in 1997 were approximately $2.0 million, also reflecting development
cost reimbursements under the collaboration agreement.
The Company's total operating expenses for the first quarter
increased to approximately $10.3 million from approximately $7.9
million for the same period in 1997. Almost all of this increase was
due to research and development expenses, which increased to
approximately $7.8 million from approximately $5.8 million in the
first quarter of 1997. Research and development expenses increased
primarily due to expanded manufacturing activities and the
recruitment of additional personnel with respect to the development
of lisofylline.
As of March 31, 1998, the Company had cash, cash equivalents,
securities available-for-sale and collaboration agreement receivables
totaling approximately $67.2 million, compared to approximately $74.1
million at December 31, 1997. The Company currently has
approximately 15.4 million shares of common stock outstanding.
The lisofylline collaboration, initiated in November 1996,
focuses on the development and commercialization of cti's lead drug
candidate, lisofylline. Lisofylline is being developed to reduce the
incidence and severity of the side effects of high-dose chemotherapy
and/or radiation therapy. In the second quarter, the Company expects
to begin a Phase II trial with its second lead compound, CT-2584, for
the treatment of advanced prostate cancer. CT-2584 is a novel cancer
chemotherapeutic targeting cancers resistant to conventional
chemotherapy.
This news release includes forward-looking statements that
involve a number of risks and uncertainties, the outcome of which
could materially adversely affect actual future results.
Specifically, the risks and uncertainties that could affect the
development of lisofylline and related compounds includes risks
associated with preclinical and clinical development in the
biotechnology industry in general and of lisofylline and related
compounds in particular (including, without limitation, the potential
failure of lisofylline and related compounds to prove safe or
effective for treatment of disease), determinations by regulatory,
patent, and administrative governmental authorities, competitive
factors, technological developments, costs of developing, producing,
and selling lisofylline and related compounds, 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 Registrations on Forms 10-K, 8-K and 10-Q.
Cell Therapeutics, Inc. focuses on the discovery, development, and
commercialization of small molecule drugs that selectively regulate
the metabolism of oxidized lipids and phospholipids relevant to the
treatment of cancer and inflammatory and immune diseases.
*T
Financial Tables Follow
Cell Therapeutics, Inc.
(A Development Stage Company)
Selected Financial Data
Statement of Operations Data:
Sept. 4,
1991 (Date of
Incorporation)
Three Months Ended March 31, To March 31,
1998 1997 1998
Revenues:
Collaboration agreements $ 3,277,935 $ 2,000,920 $ 24,330,161
Operating Expenses:
Research and development 7,768,621 5,828,445 95,923,816
General and administrative 2,574,910 2,076,105 37,408,442
------------- ------------ ------------
10,343,531 7,904,550 133,332,258
Loss From Operations:
(7,065,596) (5,903,630) (109,002,097)
Other Income (Expense):
Investment income 971,789 373,924 7,840,175
Interest expense (105,765) (109,062) (2,135,771)
Net Loss: $ (5,638,768) $ (6,199,572)$(103,297,693)
Net Loss per Share:
Basic and diluted net
loss per share $ (0.40) $ (1.06)
Shares used in
computation of basic
and diluted net loss
per share 15,381,435 5,302,804
Pro forma basic and
diluted net loss
per share (1) $ (0.40) $ (0.57)
Shares used in
computation of pro
forma basic and
diluted net loss per
share 15,381,435 9,875,044
Balance Sheet Data:
March 31, December 31,
Assets 1998 1997
Cash, cash equivalents and
securities available-for-sale $ 62,141,158 $ 70,444,374
Collaboration agreement
receivables 5,083,814 3,683,031
Prepaid expenses and other
current assets 953,009 101,127
Total current assets: 68,177,981 74,228,532
Property and equipment, net 6,605,779 5,905,100
Other assets 201,643 299,864
Total Assets: $ 74,985,403 $ 80,433,496
Liabilities and Shareholders' Equity
Current liabilities $ 7,288,970 $ 6,534,927
Long term obligations, less
current portion 2,029,588 2,138,265
Commitments -- --
Shareholders' equity: 65,666,845 71,760,304
Total Liabilities and
Shareholders' Equity: $ 4,985,403 $ 80,433,496
(1) Proforms shares include the effect of preferred shares
converted to common stock at the close of the Company's 3/26/97
initial public offering as if they were converted at the beginning
of 1997.
*T
CONTACT: Cell Therapeutics, Inc.
Lee M. Parker, 800/664-CTIC
invest@ctiseattle.com
businesswire.com
KEYWORD: WASHINGTON
INDUSTRY KEYWORD: BIOTECHNOLOGY EARNINGS
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