The $44.5 million cash injection Cell Therapeutics received last summer after sending out an S.O.S. for help to sustain operations was apparently not enough. The Seattle-based company says it is evaluating strategic options for its preclinical drug development arm, Cell Therapeutics Europe Sede Secondaria (CTE), based in Bresso, Milan. In a statement issued on Friday, Cell Therapeutics explained that the company wants to narrow its business plan and reduce its burn rate by $14 million without cutting staff at the facility.
"As CTI transitions from a research-based operation to a commercial drug company, it has been transferring resources to its U.S. sales and marketing operations," said James A. Bianco, M.D., CEO of CTI. "As we have previously announced, we are refocusing our resources on late-stage and marketed products, and as such, CTI needs to reduce its preclinical operations."
Adjuvant Global Advisors has been brought on board to assist Cell Therapeutics in identifying potential partners or buyers that would take on the preclinical team of 50 researchers currently employed at the Bresso site. According to Cell Therapeutics, there is also an existing pipeline of internal drug development projects underway at the facility to be included in the deal.
But the company is not ready to completely part with its Italian team. "[Cell Therapeutics] hopes to continue to work with the Bresso facility on contract project work and support of existing [Cell Therapeutics]' pipeline projects as part of the terms of any acquisition or other business arrangement,"Christina Waters, Ph.D., M.B.A., President, CTE and Systems Medicine.
Cell Therapeutics obtained the Bresso facility in the acquisition of NovusPharma from Roche and Boehringer Mannheim in 2004.
- check out the Cell Therapeutics release