Struggling Cell Therapeutics sells drug rights

Cell Therapeutics struck a deal to sell its remaining 50 percent stake in the cancer drug Zevalin for $18 million as it struggles to avoid running out of cash. Spectrum Pharmaceuticals--which already owns half of the drug--bought the remaining rights.

Adam Feuerstein at The Street notes that Cell Therapeutics has failed to raise new funds for the company, leaving it in a position where it had to sell off the remaining rights to its only marketed therapy. In a recent filing with the SEC, Cell Therapeutics had notified investors that it would run out of cash at the end of the month without a fresh injection of money.

Cell Therapeutics has been hit with a shortfall in projected revenue from Zevalin, higher costs and a debt load of $124 million. According to a recent SEC filing, the Seattle company is burning $13.5 million a quarter. Its shares slid to five cents on Friday.

Feuerstein, who can take a special delight in roasting unsuccessful biotechs, couldn't help but note that CEO Jim Bianco got a 2008 bonus of $487,500 on top of his annual salary of $650,000.

- read the report in TheStreet

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