BUY CELL THERAPEUTICS
Zacks isues BUY-Rating
In a recent analytical update on oncology-centric biopharma company Cell Therapeutics, Inc. (CTIC), Zacks senior healthcare analyst Grant Zeng, CFA has issued a Buy rating on the company. We excerpted the following details:
"Cell Therapeutics, Inc. develops, acquires, and commercializes novel treatments for cancer. Recent acquisition of Zevalin should generate revenue for the company and prepare the company for the future launch of other cancer products. Two pipeline products, Xyotax and Pixantrone, account for the late-stage oncology focus. We are optimistic about Cell Therapeutics' future, and believe the shares are attractive at the current level.
"In September 2006, Cell Therapeutics entered into a partnership agreement with Novartis (NVS) for Xyotax. The deal included as much as $270 million registration and sales milestone payment to CTIC and $15 million equity investment. The agreement also provided Novartis the option to develop and commercialize Pixantrone based on agreed terms.
"If Novartis exercises its option on Pixantrone, it would pay CTIC a $7.5 million fee and up to $104 million in registration and sales related milestones. Given the current low stock price, we believe the market is significantly discounting the possibility that Xyotax or Pixantrone receives U.S. Food and Drug Administration (FDA) approval.
"We believe that most of the risks have been factored into the current share price and we would be buyers of the stock given our belief that Xyotax and Pixantrone will be on the market in 2009. In our view, the street is overly pessimistic on the development programs for Xyotax and Pixantrone. We continue to rate the stock a Buy, with a price target of $6."
NO-BRAINERRRRR here imo! BUYING MORE on Monday, didn't know about this Novartis deal! Good Luck everyone, PATIENCE will payoff BIGTIME here imvho. Have a GREAT wknd everyone. MBD
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