Xyotax's estrogen reception

Investors may have all but written off Cell Therapeutics Inc.'s Xyotax paclitaxel poliglumex, which failed to show a survival benefit in three Phase III trials. But last week, Novartis AG took out a cheap option on the compound, in effect betting that CTIC has figured out the subgroup of patients who will respond to Xyotax.

Novartis (SWX:NVS; NOVN, Basel, Switzerland) received exclusive worldwide rights to Xyotax for all indications in exchange for a $15 million equity investment. The pharma company won't have to pay another penny unless Xyotax receives marketing approval. ...