While cancer is the single largest component of the global health care market, with more than 100 different diseases, CytRx (CYTR) is making huge advances, based on the stock performance for the last quarter. Up over 40% for that period, CytRx is a leader in the oncology sector with two promising programs in clinical development stages for cancer indications: Aldoxorubicin and Tamibarotene.
Aldoxorubicin, for use against brain cancer, is an improved version of the widely used chemotherapeutic agent doxorubicin. Tamibarotene, which can be taken orally, prevents potentially avoid toxic side effects by "binding to its molecular target more selectively than all trans-retinoic acid." Due to the promise of these products, CytRX President and CEO Steven A. Kriegsman and Vice President of Business Development David J. Haen recently presented at Rodman & Renshaw Global Investment Conference in New York City.
Earlier in the year, Executive Vice President and Chief Medical Officer Daniel Levitt, M.D., Ph.D., presented at the prestigious Department of Hematology and Oncology at LSU Medical School in New Orleans. His presentation, "The Diversity of Albumin-Linked Cancer Drugs," focused on the advancements in CytRx's program with Aldoxorubicin.
Of the products in the pipeline, Aldoxorubicin functions as a treatment against soft tissue sarcomas (STS).
STS is a cancer that can occur in the muscles, fat, blood vessels, tendons, fibrous tissues and connective tissue. Overall, there are more than 50 subtypes of soft tissue sarcoma. In the most recent year on record, 2012, there were 13,000 deaths and almost 38,000 new cases just in the United States and Europe. CytRx plans to initiate a Phase III global pivotal trial under a special protocol assessment (SPA) with aldoxorubicin as a therapy for patients with soft tissue sarcomas whose tumors have progressed following treatment with chemotherapy. For patients with CytRx late-stage brain cancer, CytRx is expanding its pipeline of oncology candidates that utilize novel linker platform technology that:
*can be utilized with multiple chemotherapeutic agents, resulting in more drugs being delivered against the cancerous tumor:
*in amounts 3.5-4 times greater;
*with more drugs concentrated on the tumor; and
*resulting in higher levels of efficacy and safety.
More than three-quarters of patients with "advanced soft tissue sarcoma treated
with Aldoxorubucin had clinical benefit in a Phase Ib/II clinical trial." Of note to investors is that CytRx holds the exclusive worldwide rights to Aldoxorubicin, as well as option rights to the linker platform technology. This advanced, patented platform technology allows for a flow of future drug candidates and intellectual property products.
The Company also has rights to two additional drug candidates, Tamibarotene and Bafetinib. CytRx recently completed its evaluation of Bafetinib in the ENABLE Phase II clinical trial in high-risk B-cell chronic lymphocytic leukemia (B-CLL). At present, CytRX is seeking a partner for further development of Bafetinib, and while considering options for the future development of Tamibarotene.
In the most recent development, CytRx reported that 22 percent of patients treated with Aldoxorubicin had cancerous tumors shrink by at least 30 percent. Aldoxorubicin is the most advanced form of the Doxorubicin chemotherapy treatment. Aldoxorubicin is related to Doxorubicin, which has been in use for decades. But Aldoxorubicin is superior in that it can cross the blood-brain barrier, which separates the brain from the circulotary system, which Doxorubicin cannot.
From the company website, the stage of each product in the pipeline:
While the scientific advances of CytRx are robust, the financials are healthy, too.
That is always a concern for investors, especially for small cap pharmaceuticals. What should be a relief is an improving income statement for CytRx. Total revenues doubled in the six months from December 31, 2012 to June 30, 2013. The net income position was also much-improved.
The balance sheet is also getting better.
There is twice as much as cash and cash equivalents as there was at the end of 2010. As a result, total current assets are higher. There is $28 million in capital to support near and mid-term milestones with no debt. Overall, current liabilities are much lower than from two years ago. From that, net tangible assets are more than 20% higher for the most current 12-month period than in the year ending December 30, 2011.
The analyst community has responded favorable to both the bullish product development and corporate financial performance by CytRx.
Now trading around $3.25 a share, the meant target price is $8, according to Thomson/First Call. The most recent analyst recommendation was a "Strong Buy." According to the analyst community, revenue is projected to increase by more than 600% in 2014 with sales growth rising by 576.60%. Overall, there has never been a negative analyst rating issued for CytRx with none to be expected as the stock price has risen more than 70% for 2013.
Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in CYTR over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. I like small caps with rising prices, but do not expect to buy CYTR in the next 72 hours as I believe it has better tests coming.