Cell Therapeutics Inc. (NASDAQ: CTIC)

Cell Therapeutics Inc. is a biopharmaceutical company engaged in the development and commercialization of oncology drug therapies for the treatment of cancer. Its portfolio of trial therapies includes phase III candidate drug therapy, Pixantrone, for the treatment of non-Hodgkin’s lymphoma; phase II drug, Brostallicin, for the treatment of sarcoma; and OPAXIO for the treatment of non-small cell lung, ovarian and other forms of cancer. The Company partnered with Novartis International Pharmaceuticals Ltd. and PG-TXL Co. L.P. for various drug development.

Founded in 1991, the Company is headquartered in Seattle, Washington.

Source: Reuters.com, SEC Filings.

Financial Summary

Source: Reuters.com, SEC Filings.

Analyst Consensus

The mean of two analysts polled by Thomson Reuters rate shares of CTIC an “Outperform.”

Analyst Recommendations and Revisions

Source: Reuters.com, SEC Filings.

Investment Highlights

CTIC is a biopharmaceutical company that develops and commercializes oncology drug therapies products for the treatment of cancer. Its portfolio of trial therapies includes a phase III candidate drug therapy, Pixantrone, for the treatment of non-Hodgkin’s lymphoma, which, if approved, will compete in a multi-billion-dollar market.

According to the Cancer Market Outlook report published by Business Insights, the market for cancer therapeutic drugs is expected to reach $40.9 billion by 2012. The Company’s partner, Norvartis, is a leading maker of drug therapies for the treatment of cancer.

If approved by the U.S. Food and Drug Administration (FDA), the market for CTIC’s phase III drug candidate, Pixantrone, could reach more than $1 billion at its market saturation. Data show that nine out of 10 drugs completing phase III clinical trials eventually become commercial products.

Brostallicin is the Company’s phase II drug candidate for the treatment of sarcoma, with prospects of reaching commercialization at approximately 50% following successful completion of phase II.

Pharmaceutical companies with revenue of more than $1 billion include Cephalon Inc. (Nasdaq: CEPH), which trades at a market capitalization of $4.24 billion, and King Pharmaceuticals (Nasdaq: KG), which trades at a market capitalization of $2.81 billion. As of December 8, Cell Therapeutics trades at a market capitalization of $718 million.

Recent Company News

On December 7, the Company said in a news release that updated analysis of clinical trial phase III studies reveal that the Company’s Pixantrone provided 250% relative improvement to patients suffering from non-Hodgkin’s lymphoma who have not responded favorably to at least two or more traditional chemotherapies. The principal investigator of the studies, Dr. Ruth Pettengell, noted that she is impressed by the robustness of the drug’s prolonged effects of containing progression of the disease. Pixantrone improves survival rates by approximately 50% (or three months) over presently standard-of-care chemotherapies for patients suffering from non-Hodgkin’s lymphoma.

About Pixantrone

Pixantrone (BBR 2778) is a novel addition to the topoisomerase II inhibitor class of drugs for the treatment of lymphoma, leukemia and breast cancer. As an alternative to anthracyclines, Pixantrone does not raise the risk of congestive heart failure, a typical and common risk associated with anthracyclines. As a result of the cumulative risks of anthracyclines, the use of these drugs have a limited lifetime of doses. Pixantrone does not increase future risks of congestive heart failure.

Unlike anthracyclines, Pixantrone can be administered through a peripheral vein in lieu of a central-implanted catheter.

Technical Analysis

CTIC trades above its 13-day moving average. This bullish sign is significant because the 13-day moving average is upwardly sloped.

The MACD for CTIC currently indicates a bullish signal. The MACD is above the signal line, a 9-day moving average of the MACD. The MACD is above the critical level of 0, which implies the past price action had been positive. Overall, the chart is bullish.

Comparative Analysis

Source: Thomson Financial

Insider Trading Activity

Source: Yahoo Finance

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