I agree - I don't understand this trend at all - 300 million market cap is confusing - is it manipulation? - I think short interest has actually gone down month over month
not to mention, I don't they they would have been able to put 86 million in the bank if it was a scam
Aegis Capital reaffirms its Buy rating and $12 price target on CytRx (Nasdaq: CYTR) following a recent round of financing.
Analyst Ram Selvaraju commented "CytRx should end 1Q 2014 with over $110 million in cash. This should be sufficient to fund operations through the end of 2016. CytRx is likely to have a catalyst-rich 2014, with the Kaplan-Meier curves for the firm's Phase 2 trial of aldoxorubicin against doxorubicin for soft tissue sarcoma (STS) slated to be presented at the upcoming American Society for Clinical Oncology (ASCO) Meeting in June 2014 in Chicago, IL. In the wake of the financing, which we believe should put CytRx on a firm financial footing for the foreseeable future,"
" Aldoxorubicin could have the potential to replace doxo for all of the latter's current uses in the treatment of cancer, to be more effective, to be capable of being used at much higher doses, and even to be effective against cancers where doxo does not work. Once aldoxorubicin shows itself to be an improvement on doxo on types of cancers besides STS, the way opens for wider applications in cancer therapy.
Doxo already has a modified version, namely, liposomal doxo. Johnson & Johnson (JNJ) markets it as Doxil, for use against ovarian and breast cancer. The drug has reached world-wide sales of $600M. However, doxil is not all that much of an improvement over doxo. Its main advantage over doxo in the treatment of metastatic breast cancer seems to be somewhat reduced cardiotoxicity with only comparable efficacy. Aldoxorubicin, on the other hand seems to have addressed this toxicity issue well enough for the FDA to waive the cumulative dose limit for the STS Phase 3 trial as long as disease progression is not seen, and the efficacy is likely to be higher with increased dosage, as seen in the STS Phase 2 results. Even with the current public offering, the market cap of CYTR is under $400M (~56M shares x ~$7/sh). If Johnson & Johnson in 2011 sold $401M worth of Doxil, a slight improvement of doxo, one can form a reasonable estimate of what the market potential of aldoxorubicin can be, if it gains FDA approval.
Aldoxorubicin has been given orphan drug designation by the FDA for the treatment of STS and pancreatic cancer. Orphan drugs command significantly higher prices than standard chemotherapeutics. $100,000/patient/year is not uncommon for orphan drugs. This suggests very high earning potential in the early years following product approval.
The company also has other products in its pipeline in clinical and pre-clinical development. (However, my assessment that CYTR is undervalued for its long-term potential is not based on any of these.) "
" Here are reasons why I think CYTR has much farther to go.
The quality of the Phase 2 results, the running of Phase 3 under SPA, and the recent lifting of a maximum dosing cycle short of disease progression, all bode well for the STS Phase 3 being successful and the drug being approved.
The recent raising of a hefty amount of cash through a secondary offering guarantees that the company has enough cash to run all of its current clinical trials (its annual cash burn rate has been about $20M, and this is sure to go up with the multiple trials, but with the recent sale of shares the company should have close to $100M on hand).
The company's product is not really a new drug. It is an existing drug, widely used for a variety of cancers, now apparently made safer and more effective through the linker mechanism. We can get an idea of its market potential if, as it appears, it is to replace doxo, by considering how widely doxo is used for cancer treatment. Here is what the NIH site tells about doxo:
"Doxorubicin is used in combination with other medications to treat certain types of bladder, breast, lung, stomach, and ovarian cancer; Hodgkin's lymphoma (Hodgkin's disease) and non-Hodgkin's lymphoma (cancer that begins in the cells of the immune system); and certain types of leukemia (cancer of the white blood cells), including acute lymphoblastic leukemia (ALL) and acute myeloid leukemia (AML, ANLL). Doxorubicin is also used alone and in combination with other medications to treat certain types of thyroid cancer and certain types of soft tissue or bone sarcomas (cancer that forms in muscles and bones). It is also used to treat neuroblastoma (a cancer that begins in nerve cells and occurs mainly in children) and Wilms' tumor (a type of kidney cancer that occurs in children)." "
is it a pump if the positive information is valid ? what about analysts price projections? were they a result of "pumping" - what about the FDA allowing further dosing? - was the FDA a victim of the pump as well ?
by the way, possible similar situation going on over in MACK - read on Napoli story - market cap well under a billion, too
don't pay attention to how much the share price has appreciated - unless the company is lying to us about results, that's just the tip of the iceberg - look at market cap, not share price - this should be a multi-billion dollar company, easy
I still can't believe this is at 300 million - makes me worried that I'm missing something - but if we're not being lied to or misled, this is a multi-billion dollar company
Sant Chawla, M.D., of the Sarcoma Oncology Center in Santa Monica, Calif., and principal investigator of the Phase 3 pivotal trial, commented, “In addition to observing no significant cardiotoxicity of aldoxorubicin to this point, the FDA’s agreement to extend dosing beyond six cycles offers the potential to achieve even greater progression-free survival efficacy results than were demonstrated in CytRx’s recent highly successful global Phase 2b trial for advanced soft tissue sarcomas. As the principal investigator for this trial, I can say that we are very pleased to have the opportunity to provide the maximum benefits of aldoxorubicin to the patients around the world.”
“Current chemotherapy treatments for soft tissue sarcomas have demonstrated limited impact, and other potential treatments have provided no improved benefits in Phase 3 trials,” said CytRx President and CEO Steven A. Kriegsman. “As such there is a significant need for a second-line treatment with greater efficacy and reduced or no measurable cardiac toxicity. This FDA acceptance of extended dosing represents a potential major breakthrough for CytRx and STS patients throughout the world.”