Cell Therapeutics’ (CTIC) first quarter fiscal 2010 net loss increased to $44.19 million or 7 cents per share, compared to a loss of $13.12 million or 5 cents per share in the first quarter of 2009. The loss per share would have worsened but for the increase in number of shares to 598 million compared to 285 million in the year-ago quarter.
The first quarter of 2009 included a $10.2 million gain on the stake sale in the Zevalin joint venture and some other non-recurring items. Excluding these items, previous quarter’s loss per share came in at 7 cents.
Cell Therapeutics does not have any marketed product at present; it derives revenues primarily from licenses and contracts. The company’s revenues remained unchanged at $0.02 million during the quarter.
Operating expenses during the reported quarter increased 53% to $25.8 million driven by a 108% increase in SG&A expenses. The company was preparing for the commercialization of its lead candidate, pixantrone which led to the increase in expenses.
Cell Therapeutics exited the first quarter of 2010 with $41.5 million in cash and cash equivalents. However, this does not include $18.5 million received by the company in April 2010 from an offering of preferred stock and warrants.
Cell Therapeutics also provided an update on its pipeline. Following the setback witnessed for pixantrone in the US, the company is banking on the drug’s approval in Europe. It has conducted discussions with the respective authorities and expects to file a marketing application for the drug in the second half of 2010.
Additionally, Cell Therapeutics also plans to meet the US Food and Drug Administration to decide on the study design of the additional trial of pixantrone.
We have a Neutral recommendation on the stock.
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