Finally, some good news for Cell Therapeutics, which has had a tough go of it ever since it pulled its application for lead non-Hodgkin's lymphoma drug Pixantrone even before a Food and Drug Adminstration advisory committee had a go at it. The drug had previously received a 9-0 vote against it (and subsequent rejection), although it's fared better through the European approval process.

As a welcome turnaround, company shares are up 18% today after receiving orphan drug status for brain cancer drug Opaxio. If approved, the drug could have seven years of exclusivity, although it still has phase 3 trials to pass.

Given Cell Therapeutics' weak balance sheet and management's history of dilution, Fool.com health care analyst Dave Williamson recommends staying away from this one despite the good news. For the full story, be sure to check out the video below.

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Dave Williamson and Max Macaluso have no positions in the stocks mentioned above. The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.