Cell Therapeutics to spend $96M on developing cancer drug with Baxter


Cell Therapeutics (CTIC) expects to spend $96M through mid-2017 on the development and commercialization of its Pacritinib treatment for myelofibrosis and acute myeloid leukemia.

Cell Therapeutics expects to receive $67M from Baxter (BAX) in milestones until 2015 as part of a licensing agreement for Pacritinib, with further payments possible after that. Cell Therapeutics is also receiving a $60M upfront payment from Baxter. Cell Therapeutics reckons that it should receive enough money to avoid have to raise more equity financing.

Cell Therapeutics and Baxter have been boosted by the failure of Sanofi's (SNY) Fedratinib treatment for myelofibrosis. Incyte (INCY) also develops a treatment for the rare bone-marrow cancer.

Cell Thera is +7.5%.

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Comments (1)
  • PU600
    , contributor
    Comments (8) | Send Message
     
    With the injection of cash flow, CTIC should not have liquidity issues for research, production and marketing. We should expect TP to leap, especially with support from Baxter's confidence in CTIC.
    18 Nov 2013, 08:22 AM Reply Like
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