Small-Cap Stock on Watch: Cell Therapeutics Inc. (CTIC)
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    Stock Report 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), 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 (17-Feb-12)   FY

    2009

    FY

    2010

    %

    Chg

    Q3

    2010

    Q3

    2011

    %

    Chg

    Symbol CTIC Revenue, $Mn 0.08 0.32 300.0% 0.00 0.00 0.0%
    Current price $1.35 Gross marg. 100.0% 100.0% 0.0%
    52wk Range: $0.95-$3.30 Oper. margin -23479.6%  
    Avg Vol (3m): 2,042,430 Net margin -119237.5% -25825.0% -78.%
    Market Cap. 249.74M              
    Shares Outstanding 185.00M EPS, $ -1.55 -1.29 -16.8% -0.13 -0.16 23.1%

    Source: Reuters.com, SEC Filings.

    Investment Highlights

    Shares of  drug maker Cell Therapeutics Inc. (CTIC) leaped 21.62% to close at $1.35  Friday, boosted by news the Company has gained conditional approval for Pixuvri from the European Medicines Agency (EMA).

    Shares of the Seattle-based company have gained 25.0% in the last five days; 21.6% in the last month; and 12.5% in the six months to date.

    According to the release, CTIC’s cancer drug Pixuvri has been granted a positive opinion for conditional approval from the EMA’s Committee for Medicinal Products for Human Use (CHMP). Based on the CHMP’s recommendation, CTIC expects that a conditional marketing authorization for Pixuvri should be granted by the European Commission within the next few months. CHMP recommended Pixuvri for conditional approval as monotherapy for the treatment of adult patients with multiple relapsed or refractory aggressive non-Hodgkin B-cell lymphomas (NHL).

    If the CHMP’s recommendation is formally adopted by the European Commission, Pixuvri would be approved for marketing in the 27 countries that are members of the E.U., as well as the European Economic Area. The decision by the European Commission is typically issued approximately two to three months after the CHMP opinion and generally follows the recommendation from the CHMP. If the opinion is confirmed by the European Commission, Pixuvri would be the first drug approved for patients in this setting.

    James A. Bianco, CEO of CTIC, commented: “We are very pleased with the CHMP’s positive recommendation recognizing the clinical benefit of Pixuvri in addressing a significant unmet medical need for patients with multiple relapsed or refractory aggressive B-cell NHL, and we believe that Pixuvri will add an important treatment option for physicians and provide a meaningful impact on patients.”

    CTIC saw its shares plunge in late January after announcing that it has withdrawn its approval application for Pixuvri in the U.S. The Company said the application was withdrawn because it needed additional time to prepare for the review of the Pixuvri New Drug Application (NDA) by the FDA’s Oncologic Drugs Advisory Committee (ODAC) at its February 9, 2012 meeting.

    The Company plans to resubmit the NDA later this year.

    Source:

    http://www.celltherapeutics.com/

    Financial Summary

    CTIC reported net loss attributable to common shareholders of $29.7 million, or $0.16 per share, for the quarter ended September 30, 2011, compared to a net loss attributable to common shareholders of $15.6 million, $0.13 per share, for the same period in 2010. The Company primarily attributed the increase in net loss to $13.0 million in non-cash deemed dividends on preferred stock issuances and a $2.4 million increase in research and development expenses primarily associated with the pixantrone PIX306 clinical study.  Total operating expenses for the third quarter were $15.3 million, compared to $13.0 million for the same period in 2010.

    For the nine months ended September 30, 2011, CTIC realized a net loss attributable to common shareholders of $103.2 million, $0.62 per share, down from $113.4 million, $1.03 per share, reported for the comparable period of 2010. The Company attributed the lower net loss to a drop in selling, general and administrative expenses. Total operating expenses declined to $52.3 million, which included a one-time upfront payment of $5.0 million related to the licensing of tosedostat from Chroma Therapeutics Ltd., compared to $58.8 million for the same period in 2010.

    The Company had about $45.2 million in cash and cash equivalents as of September 30, 2011, which does not include approximately $8.2 million in other proceeds received in October 2011 in connection with the settlement of a lawsuit.

    Source:

    http://investors.celltherapeutics.com/phoenix.zhtml?c=92775&p=irol-pressRoomArticle&ID=1620833&highlight=

    Financial Strength (17-Feb-12)

    Company

    Industry

    Sector

    S&P 500

    Quick Ratio (MRQ) 3.09 1.42 0.58
    Current Ratio (MRQ) 1.62 3.91 1.76 0.93
    LT Debt to Equity (MRQ) 19.16 23.05 24.54 171.20
    Total Debt to Equity (MRQ) 104.91 26.29 33.74 228.68
    Interest Coverage (TTM) -22.22 51.46 2.49 27.43

    Source: Reuters.com, SEC Filings.

    Technical Analysis

    Source: http://stockcharts.com

    CTIC is within its Bollinger Bands. This is a normal condition suggesting that it is neither overbought nor oversold relative to the recent levels.

    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
    Feb17-2012 symbol Share, $ $ Mn 2011 2012 2011 2012
    Roche Holding AG RHHBY 44.10 149.50B 12.25 11.16 3.23 3.09
    Sanofi SNY 37.16 98.90B 7.65 6.10 2.15 2.09
    Bristol-Myers Squibb Co. BMY 33.13 56.11B 16.82 17.08 3.11 3.31
    Biotechnology Median       17.39 n/a 9.12 n/a
    Cell Therapeutics Inc. CTIC 1.35 253.44M n/a n/a n/a 4.36

    Source: Thomson Financial

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