Cell Therapeutics to merge with Novuspharma

Seattle-based biopharmaceutical company Cell Therapeutics (CTI) has signed a definitive merger agreement with Italian company Novuspharma, of Milan.

The deal, which is expected to close in the fourth quarter of 2003, will mark the third cancer-related product addition for CTI since 1998. CTI is developing Xyotax, which is in pivotal phase III trials for lung cancer, while Novuspharma is developing Pixantrone, a potential best-in-class anthracycline in phase III clinical trials for lymphoma. Pixantrone is expected to benefit from CTI's strong hematology/oncology sales and marketing franchise in the US.

CTI will consolidate its early development, preclini-cal, pharmacology, and European sales and marketing activities in Milan, which will become the company's new European headquarters. Seattle will continue to be the corporate headquarters and the centre for sales and marketing, phase II/III clinical development, and target discovery and validation. The merger will result in a net reduction in workforce of approximately 50-60 employees. CTI will transfer the majority of its predevelopment and early stage clinical activities to a centre of excellence in Novuspharma's Milan facility.