CytRx Corporation (NASDAQ:CYTR), a biopharmaceutical company
specializing in oncology, today reported financial results for the
twelve months ended December 31, 2009, and affirmed its 2010 milestones
of commencing up to five Phase 2 clinical trials with its oncology drug
candidates.
“Given the potential of our diverse oncology portfolio and strength of
our corporate infrastructure, we are highly optimistic about reaching
our near-term prospects as well as our longer-term goal of building
CytRx into a major oncology company”
“Our ability to achieve our many milestones last year advanced CytRx
into a full-fledged oncology company,” said Steven A. Kriegsman, CytRx
President and CEO. “This year we have set a very aggressive clinical and
regulatory agenda that reflects our clear focus on rapidly
commercializing our oncology drug portfolio. We plan to initiate three
Phase 2 proof-of-concept clinical trials with INNO-206 and two
additional Phase 2 proof-of-concept clinical trials with bafetinib,
while continuing to execute our development plans for tamibarotene as a
treatment for acute promyelocytic leukemia (APL).
“Given the potential of our diverse oncology portfolio and strength of
our corporate infrastructure, we are highly optimistic about reaching
our near-term prospects as well as our longer-term goal of building
CytRx into a major oncology company,” he added. “Our drug candidates,
which offer advantages over currently marketed drugs, are based on known
mechanisms of action, which can minimize development risk. Our clinical
strategy calls for trials to be conducted in patients with
advanced-stage cancers, allowing for more rapid assessment of efficacy
data, and we expect substantial progress toward proof-of-concept in
multiple clinical trials by late this year and next year as well.
Additionally, our oncology portfolio could address multiple cancers,
several of which have blockbuster potential with revenue opportunities
exceeding $2 billion. We have a highly experienced team with extensive
expertise to advance this agenda and believe that our current cash
resources, including our holdings in RXi Pharmaceuticals, Inc.
(Nasdaq:RXII) will be sufficient to fund our operations for the
foreseeable future.”
CytRx’s expected 2010 clinical milestones include:
“We plan to take aggressive steps to further develop our promising
molecular chaperone portfolio, including clinical-stage arimoclomol and
iroxanadine, which target diabetic complications and neurodegenerative
diseases and disorders. We are considering partnership opportunities, as
well as a spinout similar to our successful transaction with RXi,” said
Mr. Kriegsman.
Review of Financial Results
CytRx reported a net loss attributable to CytRx common stockholders for
the twelve months ended December 31, 2009 of $4.8 million, or $0.05 per
share, based on 100.0 million weighted average shares outstanding. This
compares with a net loss attributable to CytRx common stockholders for
the twelve months ended December 31, 2008 of $27.8 million, or $0.30 per
share, based on 91.4 million weighted average shares outstanding. The
increase in weighted average shares outstanding for 2009 was primarily
due to the completion of a registered direct offering totaling $18.3
million, net of fees and expenses, in July 2009. The net loss for fiscal
2008 included charges of approximately $8.0 million related to
in-process research and development resulting from the Company's
acquisition of Innovive Pharmaceuticals, Inc. in September 2008.
Revenue for 2009 was $9.5 million, compared with revenue of $6.3 million
for 2008, with revenue for both years consisting primarily of service
revenue recognized from CytRx's 2006 $24.3 million royalty transaction
with the ALS Charitable Remainder Trust or ALSCRT. Pursuant to an
amendment signed between CytRx and the beneficiary of the ALSCRT in
August 2009, the Company recognized the remaining revenue from this
transaction as service revenue in the third quarter of 2009.