BioImaging Technologies is the leading Contract Research Organization (CRO) focused on providing medical imaging services for clinical trials. BITI designs and manages medical imaging services, as well as evaluating the effectiveness of potential drugs and medical devices. BioImaging Technologies focuses on phase II, III and IV of the clinical trial, with north of 75% of the firm’s total revenue coming from phase III trials. Nowadays everyone wants to speculate on the next hot biotech stock like Dendreon (DNDN), BioImaging is an indirect play off the whole biotech market. Frankly, the company doesn’t care if the phase II, III, and IV work as they still get paid. In their most recent quarter, BioImaging reported the following financial data: $15 million in cash ($1 per share), $0 debt, total 2008 revenues of $72.0 million dollars, gross margins of 34%, $120 million dollar backlog of sales, and insiders own 28% of the company. Insider alignment with shareholders is massively important in terms of creating shareholder wealth. Currently, BioImaging trades for just 4x earnings making it incredibly cheap.

Shares of Cell Therapeutics are up well over 800% since the start of the year, as rumors surrounding its only drug ‘Pixantrone’ a phase III trial drug for the treatment of non-Hodgkin’s lymphoma bubble up of a possible positive FDA ruling shortly. However, rumors are just that rumors and should be taken with a total grain of salt when it comes to money losing biotech stocks. Looking back on the history of Cell Therapeutics, one seriously has to question the competence of its current management. Shares of CTIC peaked roughly in October 2000 at $2,900 per share---where then it was trading in the $350 per share range by late 2004 and is now trading in the $1 range. The company has blown over $1.2 billion dollars since the late 1990s and hardly has much to show in terms of commercial or even experimental drugs on the market. In fact, given CTIC has about $150 million dollars in debt due this year management was forced to offer a toxic conversion to its debt holders, where debt holders would receive common equity in return for stock. This debt to equity conversion almost always is toxic to current shareholders no matter what the industry. Recently Cell Therapeutics announced that ‘Pixantrone’ is now available on a named-patient basis in Europe.

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