Cell Therapeutics Has to Sprint to Reach Target

Cell Therapeutics(CTIC Quote) CEO Jim Bianco reiterated last week that his company is "positioned" to break even financially in the fourth quarter, although results from the past two months show the company has fallen behind its own forecasts.

The Seattle-based drugmaker's July investor update, titled "Charting the path to profitability," highlights recent cost-cutting efforts. Cell Therapeutics has reduced operating expenses by 72%, raised new cash through the sale of stock and a cancer drug to Spectrum Pharmaceuticals and retired about 40% of its long-term debt.

The company is now "positioned to break even in Q4 2009," and could achieve profitability in 2010, according to a new slide presentation intended to highlight the company's achievements to investors.

"We can start feeling more comfortable about meeting targets," said Bianco to Bloomberg last week while on a trip to meet with stock regulators in Italy. Cell Therapeutics shares are listed on the Nasdaq and Borsa Italiana.

However, Cell Therapeutics posted a net operating loss of $11 million in April and May, more than the company's guidance of $9.5 million, according to an April slide presentation for investors.

The company previously guided to a net operating loss of $3.8 million in June and a net operating loss of $2.2 million per month for the rest of the year, according to the April slide presentation.

Cell Therapeutics reports monthly financial results to Italian stock regulators, which are then filed with the Securities and Exchange Commission. The company's financial report for June will be filed at the end of July.