Dallas, Texas 11/18/2013 (Financialstrend) – Last week, Cell Therapeutics Inc (NASDAQ:CTIC) and Baxter International jointly announced that they have inked an exclusive global licensing-agreement via which they will develop & commercialize pacritinib. Pacritinib is the novel investigational JAK2/FLT3-inhibitor that has activity against genetic-mutations that are linked to leukemia, myelofibrosis and some solid tumors. Currently, it is in Phase-III development for patients suffering from myelofibrosis, a chronic malignant-bone marrow disorder.
Under the agreement terms, Baxter will gain exclusive-commercialization rights for all the indications for pacritinib outside the U.S & Cell Therapeutics Inc (NASDAQ:CTIC) and Baxter will jointly-commercialize pacritinib within the U.S. Baxter will make an up-front payment of $60M to the latter. This includes an equity-investment in CTI of $30 M. In addition to this, Cell Therapeutics Inc (NASDAQ:CTIC) is eligible to also receive clinical & regulatory as well as commercial-launch milestone payments of upto $112M. Of these, $40M is related to clinical-milestones.
In Friday’s trading session, Cell Therapeutics Inc (NASDAQ:CTIC) rose by 6.86%. The shares opened at a price of $1.96, which touched the intraday high of $2.17 and headed to a close of $1.87. Around 34.50 million exchanged hands over the trading day and an average volume of 3.70 million shares were traded over a 30 day period. The 52-week low of Cell Therapeutics Inc (NASDAQ:CTIC) shares is $0.97 and its 52-week high is $2.17. The company has a market capitalization of $214.63 million.
About the company
Cell Therapeutics Inc (NASDAQ:CTIC) is a bio- pharmaceutical company that focuses on acquiring, development & commercialization of less-toxic ways to treat cancer. It is focusing its efforts on the treatments that target different blood-related cancers in which there are unmet medical needs. Cell Therapeutics Inc (NASDAQ:CTIC) is mainly focused on the commercialization of PIXUVRI in the European Union for multiple- relapsed/ refractory-aggressive non-Hodgkin lymphoma & is conducting a Phase-III clinical-trial of pacritinib in the treatment of myelofibrosis.