Cell Therapeutics Inc. (NASDAQ: CTIC)

Cell Therapeutics Inc. (CTIC) is a biopharmaceutical company engaged in the development and commercialization of oncology drug therapies for the treatment of cancer. Its portfolio of trial therapies include 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 Company L.P. for various drug development.

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

Source: Reuters.com, SEC Filings.

Financial Summary

Analyst Consensus

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

Analyst Recommendations and Revisions

Source: Reuters.com

Historical Surprises

Source: Reuters.com

Investment Highlights

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.

The Company 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.

The latest Pixantrone phase II trial results indicate a 70% complete remission rate in patients treated with pixantrone and FPD-R regimen (fludarabine and rituximab); a 47% rate of complete remission in patients treated with CPOP regimen (cyclophosphamide, pixantrone, vincristine, prednisone) for patients that failed CHOP (cycophosphamide, doxorubicin, vincristine, prednisone); and 35% complete remission in a phase III trial in patients treated with pixantrone plus rituximab. Pixantrone is presently on a fast-track with the U.S. Food and Drug Administration (FDA).

If approved by the FDA, the market for CITC’s drug candidate, Pixantrone, could reach more than $1 billion at its market saturation. 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 $4.07 billion, and King Pharmaceuticals (Nasdaq: KG), which trades at a market capitalization of $2.51 billion. As of August 17, the CTIC trades at a market capitalization of $514.11 million.

Most Recent 10-Q Highlights

On August 6, the Company reported in its 10-Q that it submitted peer-reviewed phase III data regarding pixantrone to the FDA, completing the submission of a New Drug Application (NDA).

Total net operating expenses dropped 24% to $21.7 million, compared with $28.7 million for the second quarter of fiscal 2008. The Company cited in a press release that the decline in operating expenses was due to a 54% decline in research and development expenses for the quarter ended June 30, 2009. The Company’s per share net loss decreased to 6 cents per share, compared with $5.18 per share. Net loss from operations decreased 54% to $27.4 million from $59.3 million. The decline in the Company’s net loss was due to a large increase in outstanding shares outstanding.

The Company reported a 44.5% reduction of outstanding debt, or a reduction of $52.9 million, resulting in a savings of approximately $3.3 million in interest expense.

At the close of the second quarter ended June 30, the Company had $12.0 million in cash and cash equivalents. Recently following the close of the second quarter, the Company reported it will receive approximately $41 million from the sale of additional common stock.

Technical Analysis

Source: http://stockcharts.com/h-sc/ui?s=ctic

CTIC trades below its 13-day moving average. This bearish sign is significant because the moving average are negatively trending as well.

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

Comparative Analysis

Source: Thomson Financial

Insider Trading Activity

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