Small-Cap Stock on Watch: Cell Therapeutics Inc. (CTIC)
  • Stock Report for Cell Therapeutics Inc. (CTIC)
  • Stock Alert for Cell Therapeutics Inc. (CTIC)
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    Stock Alert for Cell Therapeutics Inc. (CTIC)

    Cell Therapeutics Inc. (CTIC) engages in the development, acquisition and commercialization of treatments for cancer. The Company focuses on building a biopharmaceutical company with a diversified portfolio of oncology drugs. Its research, development, acquisition and in-licensing activities concentrate on identifying and developing less toxic ways to treat cancer. CTIC is focused on Pixuvri (pixantrone dimaleate), or Pixuvri, OPAXIO (paclitaxel poliglumex), or OPAXIO, brostallicin and bisplatinates. It is developing a dinuclear-platinum complex. There are three platinates commercially available (cisplatin, carboplatin, and oxaliplatin), which are first-line agents in ovarian cancer, lung cancer, testicular cancer, and colorectal cancer, as well as a range of other diseases. CTIC is developing the dinuclear-platinum complex CT-47463, which has a different mechanism of action than the platinum compounds.
     
    Share Statistics (28-Sept-11) FY2009 FY2010 % Chg Q22010 Q22011 % Chg
    Symbol CTIC Revenue, $Mn 0.08 0.32 300.0% 0.30 0.00 -100.0%
    Current price $1.04 Gross marg. 100.0% 100.0% 0.0% 100.0%
    52wk Range: $0.95-$3.30 Oper. margin -23479.6%
    Avg Vol (3m): 1,814,010 Net margin -119237.5% -25825% -78.3% -7826.7%
    Market Cap. 200.59M
    Shares Outstanding 192.88M EPS, $ -1.55 -1.29 -16.8% -0.48 -0.14 -70.8%

    Source: Reuters.com, SEC Filings.

    Investment Highlights

    Shares of CTIC have gained 7.9% in the last five days, though the stock lost 3.5% in the last month. Year-to-date, the stock is down 51.0%.

    Share of CTIC jumped as much as 8% on Wednesday after the Company said a second independent radiology assessment of data from a clinical trial of its antitumor treatment pixantrone confirmed the statistical robustness of the data. The response and progression endpoint data was previously submitted to the U.S. Food and Drug Administration (FDA) with the new drug application (NDA) for pixantrone.

    The Seattle, Washington-based cancer drug developer said in the press release that the second assessment was recommended by the FDA’s Office of New Drugs as part of the Company’s appeal of the Complete Response Letter for the NDA, which CTIC received from the FDA’s Office of Oncology Drug Products.

    “We now have two separate independent response assessment panels reporting significant results for complete response/complete response unconfirmed, overall response rate and progression-free survival at both end of treatment and end of study assessment periods as well as among the histologically confirmed aggressive non-Hodgkin’s lymphoma (NHL) subset of patients,” commented James A. Bianco M.D., CEO of CTIC.

    CTIC said it plans on resubmitting the pixantrone NDA as early as October 2011 for accelerated approval.

    The Division of Oncology Drug Products (DODP) previously confirmed that the review of the NDA would be completed within six months from the date of resubmission, which should provide CTIC an FDA action date by April 2012.

    CTIC hit an intra-day high of $1.19 but dropped later in the session to close at $1.04, down 5.45% from the previous close.  Over the past 52 week, the stock has been trading in the range of $0.95 – $3.30.  Nearly 2.6 million shares traded hands during the session, compared to the 10-day average of 1.4 million.

    Source: http://investors.celltherapeutics.com/phoenix.zhtml?c=92775&p=irol-newsArticle&cat=news&id=1610656

    Financial Summary

    CTIC reported total operating expenses of $16.9 million for the second quarter ended June 30, 2011, down 15% from $20.0 million reported in the same period last year.  The Company reported no revenues for the latest quarter.

    Net loss attributable to common shareholders for the quarter came in at $22.5 million, or $0.14 per share, down 58% from the year-ago figure of $53.6 million, or $0.48 per share. The Company attributed the decrease to lower operating expenses and lower deemed non-cash dividends on preferred stock issuances.

    CTIC had approximately $38.9 million in cash and cash equivalents as of June 30, 2011, including $5.8 million of partially received funds in a $30 million equity offering which closed in July 2011.

    Source: http://investors.celltherapeutics.com/phoenix.zhtml?c=92775&p=irol-pressRoomArticle&ID=1589912&highlight=

    Financial Strength (28-Sept-2011)

    Company

    Industry

    Sector

    S&P 500

    Quick Ratio (MRQ) 2.82 1.76 0.77
    Current Ratio (MRQ) 1.16 3.40 2.17 1.13
    LT Debt to Equity (MRQ) 99.34 15.31 23.86 109.49
    Total Debt to Equity (MRQ) 503.92 17.90 30.29 146.76
    Interest Coverage (TTM) -20.42 18.12 1.66 24.11

    Source: Reuters.com, SEC Filings.

    Technical Analysis

     

    Source: http://stockcharts.com

    CTIC’s MACD is currently indicating a weak bullish signal. Although the MACD is trending above the signal line, the indicator is still below 0, which suggests that the underlying moving averages are bearish.

    Comparative Analysis

    Company Name Ticker Price per Mrkt. Cap. P/E P/S
    Sept28-2011 symbol Share, $ $ Mn 2011 2012 2011 2012
    Bristol-Myers Squibb Company BMY 30.84 52.60B 13.53 14.97 2.49 2.88
    Sanofi-Aventis SNY 33.05 88.72B 6.91 7.41 1.83 1.77
    Biotechnology Median       18.15 n/a 9.41 n/a
    Cell Therapeutics Inc. CTIC 1.04 200.59M n/a n/a n/a 3.52

    Source: Thomson Financial

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