CytRx Corporation (NASDAQ: CYTR) is having an great start to the trading session in the pre-market hours, following up on incredible gains that were seen on the stock on Friday. The reason for the movement is relatively simple. Investors remain excited about the license agreement that was announced late last week. Of course, our partners at Trade Ideas were the first to alert us to the gains. Currently (8:45), CYTR is trading at $0.88 per hare after a gain of $0.07 per share or 7.93% thus far today.
CYTR Continues Upward On License Agreement News
As mentioned above, CytRx Corporation is having yet another strong day in the market as excitement surrounding a license agreement that was announced on Friday continues. The license agreement was signed with NantCell, who made a strategic investment through the purchase of $13 million worth of CYTR at a price of $1.10 per share. This price represents a premium of 92% over the price of the stock when the investment was made.
Under the terms of the license agreement, CYTR will also receive up to $343 million in additional money through milestone payments based on regulatory approvals and commercial milestones surrounding aldoxorubicin. In exchange, CYTR has given NantCell exclusive rights to develop and commercialize aldoxorubicin for all indications. When doing so, NantCell will pay increasing double-digit royalties when NantCell makes sales of the treatment. In a statement, Steven A. Kriegsman, Chairman and CEO at CYTR, had the following to offer…
“We are excited to forge this new relationship with NantCell. They are committed not just to bringing aldoxorubicin to the market for patients with soft tissue sarcomas, but to expand aldoxorubicin’s potential use in combination with both immuno-oncology and cell based therapies to better serve patients suffering from cancer… This license and strategic investment will put aldoxorubicin in the hands of a committed partner who pioneered the development of albumin based chemotherapies, and will allow CytRx to continue to create new ultra-high potency drug candidates based on our LADR(TM) technology platform. Aldoxorubicin will clearly benefit from the first-hand experience of the NantCell management team led by Dr. Patrick Soon-Shiong, who developed and gained regulatory approval under a 505(b)(2) pathway and commercialized Abraxane®, an albumin-mediated cytotoxic agent which currently grosses approximately $1 billion in annual sales.”
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will be keeping a close eye on CYTR. In particular, we’re interested in following the ongoing work surrounding aldoxorubicin and the new partnership this work has led to. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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