Once a shining star, Cell Therapeutics (CTIC) reported that its losses continue to expand and that more layoffs may be necessary if they can’t get more cash. The company had about $10M in cash on hand as of Dec 31, 2008 and is blowing through about $2-3M/quarter. The good news is that the sale of Zevalin (see below) got them just over $16M.

CEO James Bianco went on to say this:

“(The Board) is engaged in an evaluation of short- and long-term strategic business development opportunities and operational efficiencies. Unfortunately in this current economic environment the company finds itself like most of our peers unable to justify supporting non-essential long-term investments in preclinical research.”

CTIC just sold their remaining stake in Zevalin to Spectrum and canned all 34 associated reps for the product. The company also closed its Italian manufacturing facility back in February and axed all 62 employees at the site.

Their lead drug Pixantrone also has some cardiac safety issues so it will be interesting to see how the company pull this off.

Ultimately, it’s just a waiting game…like lions circling a wounded gazelle.

The company has hired an undisclosed financial adviser to help with “the end.”

Stay tuned…

Image from celltherapeutics

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