(RTTNews) - Biopharmaceutical company Cell Therapeutics, Inc. (CTIC: News ) Thursday reported a wider net loss for the third quarter of fiscal 2009, as there were no product sales in the quarter.

For the third quarter, net loss attributable to shareholders widened to $48.84 million from a loss of $47.65 million in the prior-year period. On a per share basis, Cell Therapeutics' net loss narrowed to $0.09 from $2.83 last year, as the company used 527.20 million shares and 16.81 million shares to calculate loss per share in the third quarter of 2009 and 2008, respectively.

The Seattle, Washington-based company said the quarter's net loss included non-cash expenses of $11.4 million in equity-based compensation expense, $6.0 million in connection with milestone payment modification expense and $13.8 million preferred stock deemed dividend expenses.

The modification to milestone expense relates to the agreement to issue $6.0 million of shares of the company's common stock to Systems Medicine, Inc. shareholders, Cell Therapeutics added.

Total revenues for the period plummeted to $20 thousand from $2.60 million in the third quarter of fiscal 2008.

There were no revenues from product sales in the quarter compared to $2.58 million generated last year. Revenues from license and contract for the three-month period were $20 thousand, flat with the previous year.
Total operating expenses for the period increased to $27.09 million from $20.46 million in the last year quarter. During the period, Cell Therapeutics incurred a one-time charge of $178 thousand with regard to restructuring and related gain on asset sale. Research and development expenses for the quarter dropped 33% to $7.6 million from $11.3 million in the corresponding period prior year.

For the nine-month period, attributable net loss narrowed to $89.39 million from $161.57 million a year earlier. On a per share basis, net loss was $0.21 as compared with $13.68 in the 2008-year period. Year-to-date revenues plunged to $60 thousand from $8.88 million in the previous-year period.

Looking ahead, chief executive officer James Bianco said, "With the recent developments and progress we are making in advancing pixantrone through its New Drug Application (NDA) review process we expect the next 3 to 6 months to be an exciting and transformative period for the Company."

In Wednesday's regular trading session, CTIC closed trading on the Nasdaq at $0.97 per share. In the 52-week period, the shares have been trading in a range of $0.05 to $2.23.

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by RTT Staff Writer

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