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Cell Therapeutics (CTIC) Sees Costs of $96M From Pacritinib Development Agreement (BAX)

November 18, 2013 6:32 AM EST Send to a Friend
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Price: $2.68 +0.75%

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Beginning on November 18, 2013, Cell Therapeutics, Inc. (Nasdaq: CTIC) plans to discuss with investors and analysts its Development, Commercialization and License Agreement (the “Agreement”) with Baxter International Inc., Baxter Healthcare Corporation and Baxter Healthcare SA (NYSE: BAX) for the development and commercialization of pacritinib for use in oncology and potentially additional therapeutic areas.

During those discussions, the Company may provide its beliefs regarding the expected timing of its development cost payment obligations and its receipt of cash milestone payments under the Agreement. Based upon the current development plan, which could change due to a variety of factors, the Company expects that it could pay up to $96 million in development costs (as determined in the Agreement) for the PERSIST-1 and PERSIST-2 myelofibrosis (MF) and acute myeloid leukemia (AML) programs through mid-2017. Of the $96 million, approximately $70 million will be development costs for the MF and AML programs through 2015, and to offset some of these expenses during this period, the Company expects to receive $67 million in cash milestone progress payments from Baxter through 2015, with additional success based milestone payments possible thereafter. The Company believes the upfront proceeds from this collaboration, as well as expected progress milestones in 2014 and 2015, will potentially be sufficient to reach regulatory filings for MF in both the U.S. and E.U. without requiring additional equity financing for the Company.

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Cell Therapeutics' management will present at the following upcoming investor conferences.

Jefferies 2013 Global Healthcare ConferenceWednesday, November 20, 2013 at 2:20 p.m. GMT / 9:20 a.m. EST, London, England.

Piper Jaffray 25th Annual Healthcare ConferenceWednesday, December 4, 2013 at 8:50 a.m. EST, New York, NY

The presentation will also be webcast live and available for replay after the presentation. The webcast can be accessed at www.celltherapeutics.com.




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