Xcyte Struggles to Stay Afloat, Concentrates on CLL, HIV

[Guest guest]

[it looks as though the company is trying to reduce the 'burn' rate

of its funds. It is dropping multiple myeloma and NHL trials, which

is unfortunate for those patients, let alone the company. In

addition, it is shedding employees. Not the mark of a thriving

company, unfortunately.

Although the results from the trials so far have shown improvement in

some aspects of patient's CLL, I think we all were hoping for more.

Still, reductions in node size, coupled with a trial in patients who

have been treated with Campath, may produce better results. (Though

I think that co-treatment may be a better idea, since Campath seems

to work well on serum/bone marrow, but not on bulky nodes, but what

do I know?)]

Xcyte Therapies, Inc. Updates Clinical Development Plans

Wednesday March 23, 4:05 pm ET

SEATTLE--(BUSINESS WIRE)--March 23, 2005--Xcyte Therapies, Inc.

(Xcyte, the " Company " ) (Nasdaq:XCYT - News) announced today that the

Company has recently completed a comprehensive review of its clinical

development program. As a result of this review, the Company has

decided to focus its resources and activities in two clinical areas.

" We are excited about our results in several diseases, " said Ron

Berenson, M.D., President and Chief Executive Officer of Xcyte

Therapies. " However, we recognize that we need to focus our resources

on our best opportunities. Therefore, we intend to concentrate our

efforts on our planned Phase II/III trial in chronic lymphocytic

leukemia (CLL). We also intend to initiate a Phase I/II trial in

patients with HIV late this year. We will complete our ongoing trials

in patients with multiple myeloma and non-Hodgkin's lymphoma, but

will not initiate additional trials in these indications at this

time. Our goal is to maintain our operating expenses for 2005 in

approximately the same range as for 2004, while retaining the core

competencies needed to move into a later stage trial. "

In the Company's Phase I/II CLL trial, 12 of 17 (71%) who received a

single infusion of Xcellerated T Cells demonstrated a 50% or greater

decrease in the size of their enlarged lymph nodes. Eleven (85%) of

the 13 patients with an enlarged spleen demonstrated a 50% or greater

decrease in the size of their spleen. Based on these results, Xcyte

is planning to initiate a Phase II/III trial, named the X-CLL Trial,

in patients who have previously been treated with Campath.

Following an End of Phase II meeting with the FDA in September 2004,

Xcyte submitted a final protocol for this trial to the FDA in

December 2004. In February 2005, the FDA requested that the Company

withdraw this protocol to facilitate further discussion of the design

of the trial. The protocol was resubmitted as a draft protocol in mid-

February, and the Company has continued an extensive discussion with

the FDA since that time. Also in mid-February, the Company met with

the FDA to discuss the chemistry, manufacturing and controls

submission that has been made related to this trial and our planned

transfer of our manufacturing operations to our new facility in

Bothell, Washington.

" We are working with the FDA to resolve the remaining issues in the

design of this Phase II/III trial as rapidly as possible, " continued

Dr. Berenson. " It remains our highest priority to get this trial

underway as quickly as possible. "

As a result of the plan to focus clinical development on the Phase

II/III trial in CLL and a Phase I/II trial in HIV, Xcyte yesterday

reduced its workforce by approximately 24% to approximately 81

employees. The Company believes that remaining staff will be

sufficient to initiate the two planned clinical trials and to

transfer manufacturing operations for the Phase II/III trial to our

new facility. The total cost to the Company of the termination

benefits are expected to be approximately $300,000.