Cell Therapeutics to sell $150 mill in notes

Cell Therapeutics says it proposes to offer $150 million of convertiblesubordinated notes, due 2008, in a private placement "subject to market and other conditions." The notes will be convertible into CT common stock at a price to be determined, and the company may also issue up to an additional $30 million of notes to cover over-allotments.

Proceeds from the offering will be used for clinical trials, expansion of CT's sales and marketing capabilities and "potential acquisitions of complementary companies or products." The company recently announced, along with partner US Oncology, that it will conduct up to five clinical studies in colorectal and lung cancers using CT's PG-TXL, which acts by linking paclitaxel to a biodegradable polyglutamate polymer (Marketletter May 7).