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A mighty tasty carrot…

In addition to boosting his salary by about 1/3 to $650K a year under a new employment contract, Cell Therapeutics (CTIC) is offering a pretty sweet incentive to its CEO, Dr. James Bianco to get the company’s cancer drug, Xyotax, approved by the FDA. Under the new employment contract disclosed in an 8-K filing on Friday, Dr. Bianco will receive 200,000 restricted shares that vest on the day that the drug is approved by the FDA. Judging by the way other stocks have popped after news of similar approvals — American Pharmaceutical Partners (APPX) received FDA approval yesterday for a similar drug and saw its stock climb by 33%. An article in today’s WSJ (no link, subscription required) talks about some of the developments with both companies.