CytRx Corporation (NASDAQ:CYTR)
CytRx Corporation (NASDAQ:CYTR) remains under pressure in the market even as its first quarter net loss narrowed compared to last year. The biopharmaceutical company says its Q1 2017 net loss came in at (-$11) million or (-$0.10) a share a slight improvement from (-$12.6) million as of Q1 2016.
Research and development expenses shrunk to $6.8 million from $8.2 million as the oncology company spent $4 million on the development of AL doxorubicin. The company also spent about $0.6 million on the preclinical development of its new albumin-bending cancer drugs. Clinical programs accounted for $2.2 million of the total expenditure.
General and administrative expenditure in the quarter totaled $3 million – a drop from $4 million as of the first quarter of 2016. CytRx Corporation (NASDAQ:CYTR) exited the first quarter with cash and cash equivalent of $48 million. During the quarter, the pharmaceutical company marked key achievements on a number of its research and development programs.
The company’s soft tissue sarcomas STS program attained yet another milestone on its regulatory path as a novel treatment for people struggling with sarcoma. CEO Steven Kriegsman expects the positive results achieved in the Phase 3 trial to go a long way in supporting the company’s filing strategy.
“Finally, we look forward to presenting the more detailed and updated global Phase 3 STS results to the medical community at the upcoming 2017 American Society of Clinical Oncology (ASCO) Annual Meeting. This Phase 3 trial, along with the combination trial of aldoxorubicin with ifosfamide/mesna, continue to build upon the body of clinical data supporting doxorubicin’s potential as a new and better treatment for patients with STS,” said Mr. Kriegsman
CytRx Corporation (NASDAQ:CYTR) has already reached an agreement with the U.S. Food and Drugs Administration (FDA) that sets the regulatory pathway for approval of Aldoxorubicin. The company plans to submit a New Drug Application (NDA) in the fourth quarter. Commercial launch of the drug is set for 2018 after the drug received Orphan Drug Designation (ODD) for use in the treatment of STS.
During the quarter CytRx Corporation (NASDAQ:CYTR) also strengthened its balance sheet through a public offering of its common stock where it raised $15 million and $2 million in Warrant proceeds. The biopharmaceutical company sold approximately 30 million shares of its common shares at a purchase price of $0.50 a share. Net proceeds from the offering are to be used as working capital and for general corporate purposes.
CytRx Corporation (NASDAQ:CYTR) was down by 4.76% in Tuesday’s trading session, ending the day at $0.521 a share.
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About the author: Monica Gray has an undergraduate degree in Accounting and an MBA – earned with Honors. She has six years of experience in the financial markets and has been a securities analyst for the past two years.