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  • 6 Primary Reasons This Seeking Alpha Contributor Is Bullish About CytRx Corp. (CYTR) 0 comments
    Jan 17, 2014 5:41 PM | about stocks: CYTR

    In a recent article entitled "Spotlight 2014-Biotech CytRx Corporation," Seeking Alpha contributing writer The Focused Stock Trader wastes no time getting to the point.

    "While the recent Phase IIb clinical trial results are driving the current move, we believe there is still a lot of room for the company to grow," he writes before naming six primary reasons for his opine.

    To read the full article visit: seekingalpha.com/article/1951691

    CytRx is a biopharmaceutical R&D company specializing in the field of oncology, particularly focusing on the clinical development of aldoxorubicin, the company's improved version of widely used chemotherapeutic agent aldoxorubicin. In regard to his bullish stance on the company, the Focused Stock Trader notes:

    1.First, CytRx had low institutional ownership of 11%, primarily by index funds.

    2.Second, aldoxorubicin is moving into a pivotal Phase III trial.

    3.Third, aldoxorubicin has broad potential.

    4.The company is talking with potential pharmaceutical and big biotech companies about a partnership to develop and commercialize aldoxorubicin on a global basis.

    5.Fifth, the platform and next drug candidates will soon emerge as a value center.

    6.Lastly, CytRx is gaining more notoriety.

    The article takes an in-depth look at aldoxorubicin's superiority over doxorubicin in the recent phase 2b trial, and why the results are a game changer for the company as well as patients suffering from soft tissue sarcoma.

    Also noted is the incredible trading activity that followed CytRx's release of the study results:

    "However, the biggest part of the story, which is different for CytRx, is the trading volume. CytRx used to trade a few hundred thousand shares daily. Since the news, the stock is trading like a monster. Over 82 million shares traded in the three days following the announcement, and more than 132 million shares traded from the news through the end of December. Keep in mind the company has about 42 million shares outstanding. That is over three times the number of outstanding shares."

    As well as the potential market for aldoxorubicin:

    "This pegs a potential revenue stream of $638 million annually. Keep in mind this is only the US and Europe. If you added Asia, South America and the rest of the world this could be a much bigger number. Biotech companies traditionally have traded at a multiple of 8x revenue. That means CytRx's valuation would be in excess of $5.1 billion just on sales for soft tissue sarcoma, a relatively rare form of cancer. Based on the current 42 million shares outstanding, that would equate to a price of approximately $121 a share. CytRx notes in their corporate presentation the number of other indications where aldoxorubicin could be used. Combined these are markets worth more than $21 Billion. If CytRx garnered a portion of it, that would be a substantial."

    The Focused Stock Trader gives a brief oversight of CytRx's financial position before offering his final conclusion that:

    "We believe that CytRx has been an underappreciated story although that sentiment is starting to change. Aldoxorubicin has blockbuster potential in multiple indications, but this may just be the beginning of the story for CytRx's technology platform. The current valuation provides ample room for upswing and a broad-acting, established drug de-risks the clinical development while providing for multiple shots on goal. We think institutions are just waking up to this story and you should too."

    For more information visit cytrx.com

    MissionIR provides investor relations services to publicly traded companies in exchange for compensation. This article may be part of our efforts to widen a client's exposure. To read our full disclaimer, visit http://disclaimer.missionir.com

    Stocks: CYTR
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