CytRx receives nontaxable grant under Qualifying Therapeutic Discovery Project Program

CytRx Corporation (Nasdaq: CYTR), a biopharmaceutical company specializing in oncology, today announced that it has been awarded a nontaxable grant of approximately $735,000 related to its INNO-206, tamibarotene and bafetinib programs under the Qualifying Therapeutic Discovery Project Program included in the Patient Protection and Affordable Care Act, H.R. 3590, signed into law in March 2010. The grant is being allocated in two tranches, with $635,000 to be received in 2010 and $100,000 in 2011.

“This grant was allocated following government review of our project submissions, which we believe represents an acknowledgement of the potential of our oncology programs and our efforts to commercialize novel, value-added drugs to treat cancer patients.”

The grant was awarded following CytRx's submission for consideration of its oncology research and development projects to the U.S. Secretary of Health and Human Services. Among the determining factors used by the Secretary in allocating funds were those projects that showed potential to produce new therapies, address unmet medical needs, reduce the long-term growth of healthcare costs and advance the goal of curing cancer. Also taken into consideration were the potential for projects to create and sustain high-quality, high-paying U.S. jobs and to advance U.S. competitiveness in the fields of life, biological and medical sciences.

"We are delighted to be the beneficiary of this grant, which provides us with additional, non-dilutive capital resources to support continued progress in developing our promising oncology drug candidates," said President and CEO Steven A. Kriegsman. "This grant was allocated following government review of our project submissions, which we believe represents an acknowledgement of the potential of our oncology programs and our efforts to commercialize novel, value-added drugs to treat cancer patients."

Qualifying Therapeutic Discovery Project Program grants or tax credits are awarded to companies with fewer than 250 employees for projects related to the treatment or prevention of diseases through the conduct of pre-clinical or clinical studies.