CytRx Corporation (NASDAQ: CYTR) is having an overwhelmingly strong start to the trading session this morning after announcing that it will be providing various presentations relatively soon. Of course, with excitement brewing surrounding the presentations, investors are sending the stock screaming for the top. Today, we’ll talk about:
- The presentations that are around the corner;
- what we’re seeing from CYTR;
- the risks to consider when investing in this company;
- and what we’ll be watching for ahead.
CYTR Heads Up With A Catalyst Around The Corner
As mentioned above, CytRx Corporation is having an overwhelmingly strong start to the trading session this morning after announcing coming presentations surrounding key clinical data. In a press release issued early this morning, the company announced that Mr. Eric Curtis, Advisor to the Chairman and CEO of CYTR, along with Dr. Felix Kratz, Vice President of Drug Discovery, will host an investor conference call and webcast to discuss new clinical data.
In the release, the company said that the call will take place at 11:00 a.m. Eastern on Wednesday, April 28, 2018. During the call, the company plans to discuss data surrounding each of the four new albumin binding ultra high potency LADRTM drug candidates. In particular, the company will discuss the significant advantages these treatment candidates display over antibody-drug conjugates. If you’d like to call in for the CYTR call, use the information below:
- US & Canada – 844-358-6753
- International – 216-562-0397
- Conference ID – 2798507
- Online – A live and archived webcast of the presentation will be available int he Investor Relations section of the company’s website.
What We’re Seeing From The Stock
With news of new data coming down the line, investors are excited. After all, this is where clinical-stage biotech companies shine. So, it’s no surprise that we’re seeing strong gains in the value of the stock today. Of course, our partners at Trade Ideas were the first to alert us to the gains. At the moment (9:39), CYTR is trading at $1.83 per share after a gain of $0.27 per share or 17.13% thus far today.
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Consider The Risks
Any time you make an investment, no matter what asset you purchase, you’re taking a risk. Investing in CYTR is no different. In this particular case, it’s important to keep in mind that the company is a clinical stage biotechnology company. This means that currently, the company is working to prove in a clinical setting that its products are effective forms of treatment for ailments. However, it also means that CytRx has no approved treatments on the market that are generating revenue.
Because of the fact that revenue is not being generated by the company through the sale of products at the moment, CYTR is heavily dependent on lenders and investors. Of course, if they should decide that they are no longer interested in footing the bill, the company would fold like an origami piece.
Also, clinical trials are not cheap. In general, clinical stage biotechnology companies will look to the market for funding when progressing through trials. Unfortunately, many of these transactions tend to be dilutive, causing the values of shares to fall. Considering the stage in which CytRx is currently operating, there is no reason that we wouldn’t expect to see dilution down the line at some point.
What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on CYTR. In particular, we’re interested in the data presentations that are just around the corner as well as following the continued progress of the company on the rest of its robust pipeline. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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