CTI BioPharma Corp (fka CTIC)

[fredman]

Accountants raise doubts about Cell Therapeutics; stock slides

Cell Therapeutics Inc.’s accounting firm said it has “substantial doubt” about the Seattle biotech’s ability to continue as a going concern and shares in the company plummeted in early Monday trading.

On Feb. 26, the accounting firm of Stonefield Josephson, Inc. of San Francisco said Cell Therapeutics (NASDAQ: CTIC) “has sustained loss from operations over the audit periods, incurred an accumulated deficit, and has substantial monetary liabilities in excess of monetary assets as of Dec. 31, 2009. Given these factors and the company’s inability to demonstrate its ability to satisfy the monetary liabilities raises substantial doubt about the company’s ability to continue as a going concern.”

Company officials acknowledged the accountants’ concerns in a filing with the Securities and Exchange Commission.

“This may have a negative impact on the trading price of our common stock and we may have a more difficult time obtaining necessary financing,” Cell Therapeutics officials wrote.

In early Monday trading, shares in Cell Therapeutics had fallen more than 10 percent, dropping more than 7 cents to around 60 cents.

Company officials said they’re counting on for FDA approval of its pixantrone drug for treatment of non-Hodgkin’s lymphoma.

“If we receive FDA approval and have a successful commercial launch of pixantrone in the second quarter of 2010 ... we expect to be cash flow positive in the fourth quarter of 2010. However, if we do not receive FDA approval but we are successful in exchanging our convertible notes due July 1, 2010, we expect that our existing cash and cash equivalents ... are sufficient to fund our presently anticipated operations through the fourth quarter of 2010.”

Source: http://news.moneycentral.msn.com/provider/providerarticle.aspx?feed=ACBJ&date=20100301&id=11174517