Cell Therapeutics, Inc. Announces Third Quarter Results.SEATTLE--(BW HealthWire)--Oct. 29, 1998--Cell Therapeutics therapeutics Treatment and care to combat disease or alleviate pain or injury. Its tools include drugs, surgery, radiation therapy, mechanical devices, diet, and psychiatry. , Inc. (cti) (Nasdaq:CTIC CTIC Conservation Technology Information Center CTIC Chicago Title Insurance Company CTIC Centro Tecnológico de la Información y de la Comunicación (Spanish: Center for the Development of Information and Communication Technologies in Asturias) ) today reported financial results for the third quarter ended Sept. 30, 1998. The net loss for the period was approximately $5.6 million on total revenues of $2.5 million for the quarter, or 36 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. , compared to a net loss of $4.3 million on total revenues of $3.6 million, or 33 cents per share reported in the third quarter of 1997. In discussing its results for the nine months ended Sept. 30, 1998, the Company noted an increase in revenues to $9.9 million from $8.9 million in the comparable period in 1997, that is principally attributable to increased lisofylline lisofylline Infectious disease An investigational antibiotic for treating serious infections in CA Pts immunocompromised by therapy–eg, induction chemotherapy for AML, high-dose RT and/or chemotherapy followed by BMT development activities during 1998. The Company's revenues are derived mostly from development cost reimbursements under a Collaboration Agreement with The R.W. Johnson Pharmaceutical Research Institute and Ortho Biotech bi·o·tech n. Informal Biotechnology. biotech Noun short for biotechnology Noun 1. Inc., both Johnson and Johnson companies (J&J). Third quarter development cost reimbursement Reimbursement Payment made to someone for out-of-pocket expenses has incurred. revenues were essentially flat at $2.5 million when compared to the $2.6 million reported in 1997. On an as-reported basis, revenue for the third quarter of the prior year of $3.6 million includes a one-time $1.0 million option payment made by J&J in 1997 to include the AML AML - A Manufacturing Language indication under the development and marketing collaboration agreement with the Company. Research & development expenses increased to $21.2 million for the nine months ended Sept. 30, 1998 compared to $18.7 million in 1997. This increase was primarily related to conducting Phase III clinical trials Noun 1. phase III clinical trial - a large clinical trial of a treatment or drug that in phase I and phase II has been shown to be efficacious with tolerable side effects; after successful conclusion of these clinical trials it will receive formal approval from the for lisofylline and preparation in anticipation of a new drug approval (NDA (Non Disclosure Agreement) An agreement signed between two parties that have to disclose confidential information to each other in order to do business. In general, the NDA states why the information is being divulged and stipulates that it cannot be used for any ) filing next year. Expenses for the quarter ended Sept. 30, 1998 remained at the same levels for the comparable quarter in 1997. The increase in general & administrative expenses was associated with supporting the Company's research and development activities and the transaction costs Transaction Costs Costs incurred when buying or selling securities. These include brokers' commissions and spreads (the difference between the price the dealer paid for a security and the price they can sell it). for acquiring the rights to PG-TXL and the establishment of Cell City, LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control , the Company's joint venture with The City of Hope National Medical Center City of Hope is one of 39 NCI-designated Cancer Centers and is located in the city of Duarte, California. City of Hope comprises an ambulatory and in-patient cancer treatment center as well as a biomedical research facility known as the Beckman Research Institute and the City of Hope . As of Sept. 30, 1998, cti had cash, cash equivalents, securities available-for-sale and a collaboration agreement receivable totalling approximately $57.0 million, compared to approximately $74.1 million at Dec. 31, 1997. The Company continues to maintain adequate cash reserves Cash reserves See: Cash investments cash reserves Investment funds that are held in short-term assets such as Treasury bills and certificates of deposit until more permanent investment opportunities are available. for its currently anticipated drug development activities. Cell Therapeutics, Inc. focuses on the discovery, development and commercialization of small molecule drugs that selectively regulate the metabolism metabolism, sum of all biochemical processes involved in life. Two subcategories of metabolism are anabolism, the building up of complex organic molecules from simpler precursors, and catabolism, the breakdown of complex substances into simpler molecules, often of oxidized oxidized having been modified by the process of oxidation. oxidized cellulose see absorbable cellulose. lipids lipids, a broad class of organic products found in living systems. Most are insoluble in water but soluble in nonpolar solvents. The definition excludes the mineral oils and other petroleum products obtained from fossil material. and phospholipids relevant to the treatment of cancer and inflammatory and immune diseases. This announcement includes forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. 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 cti's products under development includes risks associated with preclinical preclinical /pre·clin·i·cal/ (-klin´i-k'l) before a disease becomes clinically recognizable. pre·clin·i·cal adj. 1. and clinical development in the biotechnology industry in general and of cti 's products under development in particular (including, without limitation, the potential failure of CT-2584, lisofylline, PG-TXL 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 cti's products under development, 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. -0-
Cell Therapeutics, Inc.
(A Development Stage Company)
Selected Financial Data
(dollars in thousands, except per share data)
Statement of Operations Data:
Sept. 4,
1991 (Date
of
Incorpor-
Three Months Ended Nine Months Ended ation)
Sept 30, Sept. 30, To
----- ----- ----- ----- Sept. 30,
1998 1997 1998 1997 1998
----- ----- ----- ----- -----
Revenues:
Collaboration
agreements $ 2,530 $ 3,629 $ 9,946 $ 8,896 $ 30,998
Operating
Expenses:
Research and
development 6,144 6,099 21,172 18,727 $ 109,327
General and
administrative 2,578 2,351 7,958 6,483 42,791
------ ------ ------ ------ -------
8,722 8,450 29,130 25,210 152,118
====== ====== ====== ====== =======
Loss From
Operations: (6,192) (4,821) (19,184) (16,314) (121,120)
Other Income
(Expense):
Investment income 668 654 2,446 1,837 9,314
Interest expense (81) (91) (296) (297) (2,326)
------ ------ ------ ------ -------
Net Loss: $ (5,605) $ (4,258) $ (17,034) $ (14,774)$(114,132)
====== ====== ====== ====== =======
Three Months Ended Nine Months Ended
Sept 30, Sept. 30,
----- ----- ----- -----
1998 1997 1998 1997
----- ----- ----- -----
Net Loss per
Share:
Basic and diluted
net loss per share $ (0.36) $ (0.33) $ (1.11) $ (1.41)
======== ======== ======== ========
Shares used in
computation of
basic and diluted
net loss per
share 15,433,001 13,031,064 15,400,404 10,454,081
========== ========== ========== ==========
Pro forma basic
and diluted net
loss per share (a) $ (0.36) $ (0.33) $ (1.11) $ (1.23)
======== ======== ======== ========
Shares used in
computation of
pro forma basic
and diluted net loss
per share (a) 15,433,001 13,031,064 15,400,404 11,978,161
========== ========== ========== ==========
Balance Sheet Data:
(dollars in thousands)
Sept. 30, Dec. 31,
1998 1997
Cash, cash equivalents
and securities available-for-sale $ 53,812 $ 70,444
Working capital $ 51,186 $ 67,694
Total assets $ 64,585 $ 80,433
Accumulated deficit $(114,055) $(97,133)
Shareholders' equity $ 55,033 $ 71,760
(a) Pro forma 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.
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