Dallas, Texas 01/31/2014 (FINANCIALSTRENDS) – CytRx Corporation (NASDAQ:CYTR), the $334 million market capped drug maker has announced that it will make a public offering of its common stock in order to raise funds which will be used in conducting clinical trials of its lead drug candidate “aldoxorubicin”. On the back of this news, the stock posted a huge 8.42 percent in valuation during trading yesterday to end the day’s trading with a share price of $7.98.
The drug maker has also indicated that it would be using some of the proceeds towards general corporate purposes, like “working capital, capital expenditures, research and development and other commercial expenditures”. The pricing details and the close dates of the offer have been left open ended by the firm at this stage. It has retained the services of Jefferies LLC as its sole book-running manager for this exercise.
It is appropriate to note here that on 23rd January, CytRx Corporation (NASDAQ:CYTR) had announced the launch of Phase 2 clinical testing of its lead drug compound aldoxorubicin to evaluate its efficacy and safety aspects in treating “HIV-infected patients suffering from Kaposi’s sarcoma”.
CytRx Corporation (NASDAQ:CYTR) President and CEO Steven A. Kriegsman had made public announcement to this effect on 23rd January and has been quoted to have said that, “Aldoxorubicin has demonstrated effectiveness against a range of tumors in both human and animal studies, thus we are optimistic in regard to a potential treatment for Kaposi’s sarcoma. The current standard-of-care for severe dermatological and systemic KS is liposomal doxorubicin (Doxil®). However, many patients exhibit minimal to no clinical response to this agent, and that drug has significant toxicity and manufacturing issues.”
At the time of the launch of phase 2 tests, CytRx Corporation (NASDAQ:CYTR) had noted that it hopes to accumulate additional information related to the disease Kaposi Sarcoma and is banking on validating and ascertain the viability of the “linker technology platform.”