Cell Therapeutics Fighting the Buzz Over Cancer Compound

Shares of Cell Therapeutics(CTIC Quote) have come under heavy selling pressure on fears that its innovative drug-delivery technology might need a bit more time in the workshop.

The Seattle-based biotech firm is developing a technology designed to deliver higher, more effective doses of existing cancer drugs to tumors, while reducing their toxic side-effects. For starters, Cell Therapeutics is combining its technology -- a naturally occurring polymer called polyglutamate -- with the blockbuster cancer drug paclitaxel, best known by the brand name Taxol. This "supercharged" drug is called PG-TXL.

But last week, research abstracts from the upcoming meeting of the American Society of Clinical Oncology -- detailing preliminary, midstage test results for PG-TXL -- leaked onto Wall Street. The abstracts raised red flags for some institutional investors because of evidence suggesting that PG-TXL might not be as effective as previously believed. Final results from these tests will be released at the ASCO meeting May 18-21. ...