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Cell Therapeutics Inc. Reports Operating Results (10-Q)
Posted by: gurufocus (IP Logged)
Date: April 26, 2011 04:21PM

Cell Therapeutics Inc. (CTIC) filed Quarterly Report for the period ended 2011-03-31. Cell Therapeutics Inc. has a market cap of $346.5 million; its shares were traded at around $0.3847 with and P/S ratio of 1086.3.



Highlight of Business Operations:

Research and development expenses increased to approximately $11.5 million for the three months ended March 31, 2011 from approximately $7.4 million for the three months ended March 31, 2010. Pixuvri costs increased primarily due to an increase in clinical activity associated with the startup of the PIX306 study. This increase was partially offset by decreases in manufacturing activity attributable to the delay in commercial launch of Pixuvri and regulatory consulting activity. Costs for our OPAXIO program decreased primarily due to a decrease in clinical activity. Costs for tosedostat relate to the upfront payment upon execution of the co-development and license agreement with Chroma. Costs for brostallicin relate primarily to clinical development activities associated with phase I and phase II studies. Our operating expenses decreased primarily due to a decrease in non-cash share-based compensation expense.

Selling, general and administrative expenses. Selling, general and administrative expenses decreased to approximately $8.6 million for the three months ended March 31, 2011 from approximately $18.4 million for the three months ended March 31, 2010. This decrease was primarily related to reductions in noncash share-based compensation of $6.5 million and sales and marketing expenses of $3.8 million incurred in 2010 associated with the premarketing efforts for Pixuvri and personnel and travel expenses. This decrease was offset in part by discretionary bonuses and increases in legal and patent service expenses.

Interest expense. Interest expense decreased to approximately $0.4 million for the three months ended March 31, 2011 from approximately $0.8 million for the three months ended March 31, 2010. We fully repaid the remaining $38.5 million outstanding principal balance of our 4% convertible senior subordinated notes in July 2010 resulting in a decrease in interest expense in the first quarter of 2011 as compared to the same period in 2010.

Net cash used in operating activities increased to approximately $24.6 million during the three months ended March 31, 2011 compared to approximately $23.2 million for the same period during 2010 primarily due to a one-time upfront payment of $5.0 million related to the licensing of tosedostat included in research and development expense, offset by a decrease in selling, general and administrative expense, excluding the allocation of non-cash share-based compensation.

Net cash used in investing activities decreased to approximately $0.3 million for the three months ended March 31, 2011 compared to $1.1 million for the three months ended March 31, 2010. The decrease was primarily due to decreases in purchases of property and equipment.

Net cash provided by financing activities of approximately $46.9 million for the three months ended March 31, 2011 was primarily due to the issuance of our preferred stock. In January 2011, we received approximately $23.4 million in net proceeds from the issuance of 25,000 shares of our Series 8 Preferred Stock, warrants to purchase 22.6 million shares of common stock and an additional investment right to purchase 25,000 shares of Series 9 Preferred Stock. We also received approximately $23.7 million in net proceeds from the issuance of 24,957 shares of our Series 10 preferred stock, warrants to purchase 25.9 million shares of common stock and an additional investment right to purchase 24,957 shares of our Series 11 Preferred Stock. Net cash provided by financing activities of approximately $27.5 million for the three months ended March 31, 2010 was primarily due to $28.1 million in net proceeds received from the issuance of 30,000 shares of our Series 3 preferred stock and warrants to purchase approximately 8.6 million shares of our common stock in January 2010.

Read the The complete Report



Stocks Discussed: CTIC,
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