CytRx (NASDAQ:CYTR) compound, Aldoxorubicin, is an incremental improvement with excellent potential. In fact, I believe it's nearly a sure thing. Science has already proven binding the well-known drug Doxil to albumin causes greater accumulation in tumors, while affording less toxicity to the subject. This allows higher doses without the increased toxicity issues decades of research has shown with high-dose Doxil.
Recently, Aldoxorubicin research was temporarily halted. I am not aware of any notice to re-start, and have made great effort to obtain comment about the halt, including whether it is fact or fiction. Research centers and trial managers received notice during the week of November 3rd. A summary of the vague yet profound notice states a new, never before reported, 'event' occurred in a single patient. The event was enough of a concern to temporarily hold all research studies across the Aldoxorubicin platform.
The 'event' itself is real. The temporary hold is real. So what is going on? To be fair, it was important to allow CytRx Management their allotted 4 Business Days to report. Since they have not, Investors now deserve both a response to news of the 'event,' and a reason as to why Management has failed to disclose this news.
To date, there are more questions than answers. Multiple questions to CytRx and CytRx Investor Relations were either unanswered, met with honest lack of knowledge, or totally ignored.
Why has CytRx not disclosed the temporary clinical hold to investors? When was the hold published? Is the Temporary Hold Research Center driven or was it pushed from the FDA? Does the hold affect the entire patient population or only a specific subset? What exactly does a single 'event' mean? What exactly does a temporary hold mean to Aldoxorubicin? How long will this be in effect? How long will this delay research? How far into the future will this push dates to disclose updates as mentioned in the November 4 Quarterly report?
CEO, Self Appointed Chairman of the Board, and Defendant in an increasing number of Shareholder and Derivative Lawsuits, Steven Kriegsman, has a dubious past. It appears to CytRx followers that most of the multitude of current lawsuits, if not all, question the integrity of his choices and ability to lead. The lawsuits state Kriegsman unfairly chose to enrich himself by selling company shares. Others claim he chose to raise his pay without merit and grant himself and others unwarranted options. The suits say Kriegsman chose to consolidate Board Power to himself and is an unreliable manager with no medical or scientific education. Insiders assert he is bad for moral and makes tyrannical edicts. It seems every lawsuit claims Kriegsman is guilty of what amounts to various forms of fraud.
The volume and increase of lawsuits was noted in the November 4th Quarterly Summary.
All of the above makes it difficult to sit by and believe CytRx has nothing to report to shareholders. In my opinion, Kriegsman cannot be trusted. The reports of an 'event' and 'temporary hold' need immediate responses.