Cell Therapeutics shares fall after going-concern doubt

March 1 Mon Mar 1, 2010 6:45am EST

March 1 (Reuters) - Shares of Cell Therapeutics (CTIC.O) fell about 9 percent before the bell Monday, after the company said late Friday that its auditors had expressed "substantial doubt" about its ability to continue as a going concern.

In its 2009 annual report filed with the U.S. Securities and Exchange Commission, the company said it does not expect that its existing cash and equivalents will provide sufficient working capital to fund operations through the third quarter of 2010.

As of Dec. 31, the company had cash and equivalents of $37.8 million.

Last month, U.S. drug reviewers questioned effectiveness data for the company's experimental lymphoma drug and said the medicine had substantial side effects. [ID:nN05157497]

Shares of Cell Therapeutics were trading at 61 cents before the bell, down from Friday's close of 67 cents on Nasdaq. (Reporting by Jennifer Robin Raj in Bangalore; Editing by Mike Miller)

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Comments (1)
CTI wrote:
This story lacks certain facts. The company has reduced its debt and cut expenses. Also since Dec. the company has rasied and additional $20 million. The company also expects to hear shortly of the date for an ODAC meeting which will review its cancer drug pixantrone for late stage NHL. This could be the first FDA approved drug for this patient population.

Mar 01, 2010 7:56am EST  --  Report as abuse
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