CytRx Corporation (NASDAQ:CYTR) and other similar biopharma stocks are driven by the progress of the trials. The stock price moves as information about these trails surfaces and investors place bets on the outcome. They either pass or fail. There is little else in between, so biotech wagers by investors are win/lose bets. However, a small bet in this sector can equal a big reward.
Most investors I know who invest in this sector make many smaller bets across a handful of stocks where they have personal exposure. What I mean is that they know someone who has been affected by the disease or malady. This opens the door to extended research and a deeper understanding of the subject matter.
CytRx Corporation (NASDAQ:CYTR) is a biopharmaceutical research and development company specializing in oncology. A month ago, CYTR priced a public offering of 30 million shares of its common stock at $0.50 per share, for gross proceeds of approximately $15 million. Shares had a nice move from this issue price and traded to nearly $1.00. A look at the chart below shows the initial move, pullback, and another rally yesterday (+22%) retesting the highs for the year.
CYTR updated the presentation for two abstracts to present at the 2017 American Society of Clinical Oncology, taking place June 2-6, 2017 in Chicago. This fundamental news is creating some volatility in the shares.
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“In addition to the significantly prolonged progression-free survival achieved by both North American and L-sarcoma patients, the data presented at ASCO this year demonstrate that, unlike any other drugs in this class, aldoxorubicin can be dosed continuously with minimal to no cardiotoxicity,“ commented Sant Chawla, M.D., F.R.A.C.P., Director of the Sarcoma Oncology Center in Santa Monica, California, and Principal Investigator for the Phase 3 trial.
“Another distinct advantage is its ability to be administered to patients who have already been treated with doxorubicin. Taken together, these findings support aldoxorubicin’s potential as a superior anthracycline treatment for patients suffering with these highly complex and difficult to treat types of cancer.”
Daniel Levitt, M.D., Ph.D., Chief Operating Officer and Chief Medical Officer of CYTR, commented, “The data from both of these important clinical trials evaluating aldoxorubicin in sarcomas, along with our several other completed clinical and preclinical studies, will form the basis of our planned New Drug Application submission to the U.S. Food and Drug Administration, and we are pleased to share these more mature and detailed results in this peer-reviewed forum with the medical and scientific communities.”
Soft tissue sarcoma is a cancer occurring in muscle, fat, blood vessels, tendons, fibrous tissues and connective tissue. It can arise anywhere in the body at any age. STS remains a high unmet medical need because of the difficulty in treating the more than 50 types of this aggressive cancer. According to the American Cancer Society, in 2016 more than 12,300 new sarcoma cases were diagnosed in the U.S. and approximately 5,000 Americans died from this disease. In addition, approximately 40,000 new cases and 13,000 deaths in the U.S. and Europe are part of a growing under served market.
Aldoxorubicin is a rationally-engineered cytotoxic which combines doxorubicin, a widely used chemotherapeutic agent, with a novel linker molecule that binds directly and specifically to circulating albumin, the most abundant protein in the bloodstream. Protein-hungry tumors concentrate albumin, which facilitates the delivery of the linker molecule with the attached doxorubicin to tumor sites.
CytRx Corporation (NASDAQ:CYTR) is also expanding its pipeline of oncology candidates at its laboratory facilities in Freiburg, Germany, through its LADR™ (Linker Activated Drug Release) technology platform. New platforms could lead to licensing or a buyout. Shares here are newly issued and need to be evaluated on their own merit related to the Phase 3 results. Again, these are binary bets that have a winner and a loser, which will be reflected in the stock price. For continuing coverage on shares of CYTR stock, as well as our other hot stock picks, sign up for our free newsletter today and get our next hot stock pick!