CTI Loses $4.3M Arbitration

Luke Timmerman5/28/09

Cell Therapeutics (NASDAQ: CTIC), the Seattle-based developer of cancer drugs, said today in a regulatory filing that it lost an arbitration dispute with Irvine, CA-based Spectrum Pharmaceuticals worth $4.3 million. In February, CTI sold its remaining stake in the lymphoma drug ibritumomab tiuxetan (Zevalin) to Spectrum for $16.5 million. In April, Spectrum refused to pay a final installment payment of $3.5 million, saying CTI owed it that amount and more. The arbitrator agreed, allowing Spectrum to keep the $3.5 million, and ordering CTI to pay Spectrum another $776,000.

Luke Timmerman is the National Biotech Editor of Xconomy, and the Editor of Xconomy Seattle. E-mail him at ltimmerman@xconomy.com or follow him on Twitter at twitter.com/ldtimmerman.