Biotech Values

[DewDiligence]

Why would any company want CTIC
shares as consideration in a deal?

http://yahoo.reuters.com/news/articlehybrid.aspx?storyID=urn:newsml:reuters.com:20070119:MTFH43053_2...

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DORB gets buyout offer from Cell Therapeutics

Fri Jan 19, 2007 5:21 PM ET

Jan 19 (Reuters) - DOR BioPharma Inc. <DORB.OB> said on Friday that it received an unsolicited buyout offer from Cell Therapeutics Inc. <CTIC>.

However, DOR said it cannot consider the offer at this time as the company had signed a letter of intent which grants Sigma-Tau Pharmaceuticals Inc., a unit of Italy-based Sigma-Tau Group, exclusive right to negotiate for its lead product.

Cell Therapeutics, a biotechnology company, would issue 29 million shares to DOR shareholders, representing 19.9 percent of its outstanding stock, DOR said in a statement. In addition, it would offer $15 million in stock or cash if the U.S. Food & Drug Administration approves DOR's new drug application for orBec, its treatment for complications of bone marrow transplantation.

Sigma-Tau had agreed to purchase $1 million of DOR shares for about 25 cents a share, and paid an additional $2 million in cash.
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