While shares of CYTR have dipped into the low forty cents range following the announcement of a direct offering last week, the new week opened up with another round of encouraging news regarding INNO-206, an experimental doxorubicin conjugate that targets cancerous tumors which was recently granted an orphan drug designation by the FDA for the indication of soft tissue sarcomas.
According to Monday's press release, trial results demonstrated "the achievement of providing complete remissions in aggressively growing in vivo ovarian cancer tumors treated with a combination of low doses of INNO-206 and the commonly prescribed cancer treatment doxorubicin."
Additionally, these results were published on-line in the peer-reviewed journal Investigational New Drugs (http://www.springerlink.com/content/v4286257326571wm/) with a print edition scheduled to follow.
CytRx plans to initiate a quick turnaround into a Phase 2b clinical trial for INNO-206 as a treatment for soft tissue sarcomas later in 2011, following the Phase 1b dose escalation safety trial, from which results will be pending in a few months.
Also reported in Monday's release, "Previous studies have shown INNO-206 efficacy in tumor models of breast, ovarian, small cell lung cancer, renal cell cancer and pancreatic cancers. Several other chemotherapy agents have been attached to the linker used for INNO-206, including paclitaxel, camptothecin, cisplatin and methotrexate, and may be incorporated into future clinical development by the Company."
To date, CytRx has seven clinical trials either under way or in the works, with bafetinib and tamibarotene, the products most further along, already being tested in multiple Phase II trials.
Last week's stock offering will net the company just under twenty million and will support the continued development of the pipeline. Stock offerings are always a threat with developing biotechs, but it should also be noted that CytRx has - in the past - found other non-dilutive ways to fill the cash coffers.
The drop in price on heavy volume will bring added attention to CYTR, but those looking towards the long term might like what they see after this recent drop. The pipeline potential still remains.
Disclosure: No position. VFC's Stock House has been monetarily compensated by JSDC LLC to cover CYTR for a period of 90 days. The fact that VFC has been compensated inherently indicates a strong bias on my behalf. The goal of this website and all articles published on my behalf, is to provide investors with information, opinions, and starting points about various companies across many sectors. It's up to each individual investor to decide what he or she finds relevant. As always, each investor must conduct his or her own DD and invest accordingly.