Cell Therapeutics Inc., a privately held firm in Seattle,raised $32 million in a self-managed offering and reducedits staff 16 percent to focus on clinical development ofdrug candidates emerging from its early stage researchefforts.

The three-year-old company initially announced in Marchthat it derived $25.6 million from its private offering, butofficials said Wednesday they raised another $6.25million, bringing the total to $31.85 million.

Cell Therapeutics' CEO, James Bianco, said the companyhas raised about $90 million since it was founded withtechnology for regulating phosphatidic acid, which is partof an abnormal intracellular signaling pathway believedto be associated with cancer and immune diseases.

The financing and company restructuring, Bianco said,are aimed at moving Cell Therapeutics' lead product,Lisofylline, from ongoing Phase II studies into Phase IIItrials for regeneration of bone marrow followingchemotherapy. Funds also will be used to supportanticipated Phase I studies of another compound, CT-2584, for treatment of cancer, such as prostate, ovarian,colon and breast cancers.

In shifting focus from research to clinical developmentprograms, Bianco said the company cut 19 positions fromits staff, reducing the number of employees to 97.

"Our resources will get us well into Phase III trials forLisofylline and into Phase II with our anti-cancerproduct," Bianco added. _ Charles Craig

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