CTI BioPharma Completes Recruitment in PERSIST-1 Pivotal Phase 3 Trial of Pacritinib for Patients with Myelofibrosis

  CTI BioPharma Completes Recruitment in PERSIST-1 Pivotal Phase 3 Trial of
                  Pacritinib for Patients with Myelofibrosis

-Top-line Results Expected in Early 2015-

-CTI Expects to Receive $20 Million Development Milestone Payment from Baxter-

PR Newswire

SEATTLE, July 1, 2014

SEATTLE, July 1, 2014 /PRNewswire/ --CTI BioPharma Corp. (CTI or the Company)
(NASDAQ and MTA: CTIC) announced today that it has completed recruitment in
the PERSIST-1 pivotal Phase 3 clinical trial of pacritinib, a novel oral
JAK2/FLT3 inhibitor that is being evaluated for the treatment of
myelofibrosis. Under the development and commercialization agreement for
pacritinib with Baxter International, Inc. (Baxter), CTI expects to receive a
$20 million development milestone payment in connection with the first
treatment dosing of the last patient enrolled in PERSIST-1. CTI expects to
achieve this milestone and receive payment by mid-third quarter 2014.

"The PERSIST-1 clinical trial evaluating pacritinib, a novel JAK2/FLT3
inhibitor, is the most inclusive study of myelofibrosis patients seen in
routine clinical practice to date," said Claire Harrison, M.D., Consultant
Hematologist, Guy's and St. Thomas' NHS Foundation Trust, Guy's Hospital,
London, United Kingdom and one of the principal investigators for PERSIST-1.
"Previous randomized clinical trials have excluded patients with low platelet
counts (below 50,000-100,000 per microliter (uL)) despite almost 30 percent of
all myelofibrosis patients having disease-related thrombocytopenia. Currently
available JAK1/JAK2 inhibitors are associated with treatment-emergent
myelosuppression, including thrombocytopenia as a side effect of their therapy
requiring reduced doses and sometimes early cessation of treatment when used
in patients with disease-related thrombocytopenia. These patients represent an
unmet medical need; a non-myelosuppressive JAK2 inhibitor would represent a
significant advancement in the treatment of this chronic disease."

The PERSIST-1 trial is the first of two Phase 3 trials in the pacritinib
development program in myelofibrosis. The second Phase 3 trial, PERSIST-2, is
currently evaluating pacritinib for the treatment of patients with low
platelet counts compared to best available therapy, including approved JAK2
inhibitors at their recommended dose and schedule for myelofibrosis patients
with thrombocytopenia. The two clinical trials are intended to support an
anticipated New Drug Application (NDA) regulatory submission in the U.S. in
late 2015, followed by an anticipated Marketing Authorization Application
(MAA) in Europe in 2016.

"Completing recruitment in the PERSIST-1 trial is a significant milestone in
our development program for pacritinib, and we look forward to reporting
top-line results in early 2015," said James A. Bianco, M.D., President and CEO
of CTI BioPharma. "The high physician and patient interest in participating in
this trial underscores the need for new, effective and less toxic treatment
options for patients with myelofibrosis."

The PERSIST-1 trial was designed to enroll approximately 320 patients and is a
randomized, open-label, multicenter trial comparing the efficacy and safety of
pacritinib with that of best available therapy, other than JAK inhibitors, in
patients with primary myelofibrosis, post-polycythemia vera myelofibrosis or
post-essential thrombocythemia myelofibrosis, without exclusion for low
platelet counts. The primary endpoint is the percentage of patients achieving
a greater than or equal to 35 percent reduction in spleen volume measured by
MRI or CT at 24 weeks of treatment.

Pacritinib Development Program in Myelofibrosis

Based on pacritinib's efficacy and tolerability profile demonstrated to date,
CTI is pursuing a broad approach to advancing this therapy for myelofibrosis
patients by conducting two Phase 3 clinical trials: one in a broad set of
patients without limitations on blood platelet counts, the ongoing PERSIST-1
trial, and the other in patients with low platelet counts, the PERSIST-2

In March 2014, CTI announced the initiation of the PERSIST-2 trial, which will
evaluate pacritinib in patients with myelofibrosiswhose platelet counts are
less than or equal to 100,000/uL. The trial is designed to enroll up to 300
patients inNorth America,Europe,Australia, New Zealand and Russia.
InOctober 2013, CTI reached agreement with theU.S. Food and Drug
Administration(FDA) on a Special Protocol Assessment for the PERSIST-2 trial,
which is a written agreement between CTI and theFDAregarding the planned
design, endpoints and statistical analysis approach of the trial to be used in
support of a potential NDA submission.

More details on the PERSIST-1 and PERSIST-2 trials can be found at

About Pacritinib

Pacritinib is an oral tyrosine kinase inhibitor with dual activity against
JAK2 and FLT3. The JAK family of enzymes is a central component in signal
transduction pathways, which are critical to normal blood cell growth and
development, as well as inflammatory cytokine expression and immune responses.
Mutations in these kinases have been shown to be directly related to the
development of a variety of blood-related cancers, including
myeloproliferative neoplasms, leukemia and lymphoma. Pacritinib may offer an
advantage over other JAK inhibitors through effective treatment of symptoms
while having less treatment-emergent thrombocytopenia and anemia than has been
seen in currently approved and in-development JAK inhibitors.

In November 2013, CTI and Baxter entered into a worldwide license agreement to
develop and commercialize pacritinib in which CTI and Baxter will jointly
commercialize pacritinib in the United States and Baxter has exclusive
commercialization rights for all indications outside the United States.

About Myelofibrosis

Myelofibrosis is classified as a myeloproliferative neoplasm and is a chronic
bone marrow disorder. Myelofibrosis is caused by the accumulation of malignant
bone marrow cells that triggers an inflammatory response, scarring the bone
marrow and limiting its ability to produce red blood cells, prompting the
spleen and liver to take over this function. Symptoms that arise from this
disease include enlargement of the spleen, anemia, extreme fatigue and pain.

About CTI BioPharma

CTI BioPharma Corp. (NASDAQ and MTA: CTIC) is a biopharmaceutical company
focused on the acquisition, development and commercialization of novel
targeted therapies covering a spectrum of blood-related cancers that offer a
unique benefit to patients and healthcare providers. CTI has a commercial
presence in Europe and a late-stage development pipeline, including
pacritinib, CTI's lead product candidate that is currently being studied in a
Phase 3 program for the treatment of patients with myelofibrosis. CTI is
headquartered in Seattle, Washington, with offices in London and Milan under
the name CTI Life Sciences Limited. For additional information and to sign up
for email alerts and get RSS feeds, please visit www.ctibiopharma.com.

Forward-Looking Statements

This press release includes forward-looking statements within the meaning of
the Safe Harbor provisions of the Private Securities Litigation Reform Act of
1995. Such statements are subject to a number of risks and uncertainties, the
outcome of which could materially and/or adversely affect actual future
results and the trading price of CTI's securities. Such statements include,
but are not limited to, statements regarding CTI's expectations with respect
to the development of CTI and its product and product candidate portfolio, the
expected attainment of the milestone involving the first treatment dosing of
the last patient enrolled in PERSIST-1 and the expected receipt and timing of
the associated $20 million development milestone payment from Baxter, the
projected timing of the availability of top-line data for the PERSIST-1 trial,
the incidence rate of myelofibrosis patients having disease-related
thrombocytopenia, the expected enrollment for the PERSIST-2 trial, expected
efficacy and potential benefits of pacritinib and the ability of the PERSIST-1
and PERSIST-2 trials to support a potential NDA and MAA submission for
pacritinib in 2015 and 2016, respectively. Risks that contribute to the
uncertain nature of the forward-looking statements include, among others,
risks associated with the biopharmaceutical industry in general and with CTI
and its product and product candidate portfolio in particular including, among
others, risks associated with the following: that CTI cannot predict or
guarantee the pace or geography of enrollment of its clinical trials, that CTI
cannot predict or guarantee the outcome of preclinical and clinical studies,
that preclinical and clinical trials will not occur as planned, that CTI may
not obtain favorable determinations by other regulatory, patent and
administrative governmental authorities or will not be in a position to submit
regulatory submissions as or when projected, risks related to the costs of
developing pacritinib and CTI's other product candidates, and other risks,
including, without limitation, competitive factors, technological
developments, that CTI's operating expenses continue to exceed its net
revenues, that CTI may not be able to sustain its current cost controls or
further reduce its operating expenses, that CTI may not achieve previously
announced goals and objectives as or when projected, that CTI's average net
operating burn rate may increase, that CTI will continue to need to raise
capital to fund its operating expenses, but may not be able to raise
sufficient amounts to fund its continued operation as well as other risks
listed or described from time to time in CTI's most recent filings with
theSecurities and Exchange Commission on Forms10-K, 10-Q and 8-K. Except as
required by law, CTI does not intend to update any of the statements in this
press release upon further developments.

Monique Greer
+1 206-272-4343

Ed Bell
+1 206-282-7100

In Europe: CTI Life Sciences Limited, Milan Branch
Laura Villa
+39 02 94751572

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SOURCE CTI BioPharma Corp.

Website: http://www.ctibiopharma.com
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