The information provided to this Item 7.01 shall not be deemed to
be filed for purposes of Section 18 of the Securities Exchange
Act of 1934, as amended (the Exchange Act), or otherwise subject
to the liabilities of that section, and shall not be incorporated
by reference into any filing or other document filed by the
Company to the Securities Act of 1933, as amended, or the
Exchange Act, whether made before or after the date hereof and
regardless of any general incorporation language in such filing
or document, except to the extent expressly set forth by specific
reference in such filing or document. The information provided to
this Item 7.01 shall instead be deemed furnished.

On December 9, 2016, CTI BioPharma Corp. (the Company) issued a
press release in Italy announcing that the Companys Board of
Directors (the Board) approved a reverse stock split in order to
regain compliance with The NASDAQ Stock Market LLC (the NASDAQ)
minimum closing bid price of $1.00 per share. A copy of the
English translation of the press release, entitled CTI BioPharma
Announces Planned Reverse Stock Split is furnished as Exhibit
99.1 hereto.

Item 8.01 Other Events.

On December 9, 2016, the Company announced that the Board
approved a reverse stock split in order to regain compliance with
NASDAQs minimum closing bid price of $1.00 per share. Upon the
effectiveness of the reverse stock split, each of the Companys
shareholders will receive one (1) new share of the Companys
common stock (the Common Stock) for every ten (10) shares of the
Common Stock that such shareholder holds. The reverse stock split
will affect all of the Companys authorized shares, including all
outstanding shares of Common Stock as well as the number of
shares of Common Stock underlying stock options, warrants and
other exercisable or convertible instruments outstanding at the
effective time of the reverse stock split. It is anticipated that
the reverse stock split will become effective on or about January
1, 2017.

Cautionary Statement Regarding Forward-Looking Statements

This Current Report on Form 8-K contains forward-looking
statements that are made to the Safe Harbor provisions of the
Private Securities Litigation Reform Act of 1995, including,
without limitation, statements regarding the planned
effectiveness of the reverse split of the Companys Common Stock
and the Companys future compliance with the NASDAQ listing
requirements for continued listing on The NASDAQ Capital Market.
Forward-looking statements involve a number of risks and
uncertainties, the outcome of which could materially and/or
adversely affect actual future results and the trading price of
the Companys securities. Specifically, the risks and
uncertainties that could affect the Company include risks
associated with preclinical and clinical developments in the
biopharmaceutical industry, including, without limitation, that
the Company may experience continued delays in the regulatory
approval process of its products, the Companys ability to
continue to raise capital as needed to fund its operations, that
the reverse stock split may not increase the per-share-trading
price of the Common Stock to regain compliance with the NASDAQ
listing requirements for continued listing on The NASDAQ Capital
Market, that the reverse stock split may not become effective on
or about January 1, 2017, competitive factors, technological
developments, costs of developing, producing and selling the
Companys product candidates, and the risk factors listed or
described from time to time in the Companys filings with the
Securities and Exchange Commission, including, without
limitation, the Companys most recent filings on Forms 10-K, 10-Q
and 8-K. Except as may be required by law, the Company does not
intend to update or alter its forward-looking statements whether
as a result of new information, future events or otherwise.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits