Under the proposed terms, Cell Therapeutics would issue the company’s shareholders 29,000,000 shares of Cell Therapeutics’ common stock, representing 19.9% of Cell Therapeutics’ outstanding shares of common stock.
However, DOR has previously entered into a non-binding letter of intent with Sigma-Tau Pharmaceuticals, which grants Sigma-Tau an exclusive right to negotiate terms and conditions regarding the company’s lead product, orBec. Moreover, due to absent express written permission from Sigma-Tau, Cell Therapeutics has said it cannot consider Cell Therapeutics’ merger proposal at this time.
In addition, Cell Therapeutics is also offering the potential for an additional $15 million payment upon receipt of the approval of the FDA of its new drug application for orBec. The proposal from Cell Therapeutics is subject to, among other things, the completion of satisfactory due diligence regarding clinical, regulatory, manufacturing and proprietary positioning for orBec.