Cell Therapeutics Inc. Soars Again
Jan 6th 2014 7:00PM
Updated Jan 6th 2014 7:02PM
Shares of Cell Therapeutics had a monster of a day on the market today, up 20% at their height before settling back down to a 12% gain for the day. In this video, Motley Fool health-care analyst David Williamson looks at some positive news out of Europe that has been driving up shares today about the company's non-Hodgkin lymphoma drug, Pixuvri. David also looks at more good news for the company, after the FDA released a partial clinical hold on Cell Therapeutics' leukemia drug Tosedostat, which is in phase 2 trials.
However, David warns that despite some recent good news for the company and the stock's incredible run recently, there are serious pitfalls for investors to consider here. He notes that despite the company's seemingly robust pipeline on the surface, some of its pipeline drugs, such as Pacritinib, have a checkered past. As well, he warns that the company has a track record of diluting shareholder equity, and with shares having doubled in price over the last year, another capital raise may not be far over the horizon.
A biotech game-changer
The best way to play the biotech space is to find companies that shun the status quo and instead discover revolutionary, groundbreaking technologies. In The Motley Fool's brand-new free report "2 Game-Changing Biotechs Revolutionizing the Way We Treat Cancer," find out about a new technology that Big Pharma is endorsing through partnerships, and the two companies that are set to profit from this emerging drug class. Click here to get your copy today.
The article Cell Therapeutics Inc. Soars Again originally appeared on Fool.com.David Williamson has no position in any stocks mentioned. Follow David on Twitter: @MotleyDavid. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2014 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.