CytRx Corporation (CYTR) Stock: The Case For A Buyout Is Building

CytRx Corporation (NASDAQ: CYTR) is a stock that’s generating quite a bit of buzz among investors as of late, and for good reason. It’s one of those companies that is in a perfect position for a buyout. At the end of the day, if this were to happen, it would generate incredible value for investors. So, why do I say that CYTR is primed for a takeover? The answer is simple…

CYTR Has Aldoxorubicin

For those of you who haven’t been following CytRx corporation, the company’s flagship product candidate is aldoxorubicin, and this could prove to be an overwhelmingly profitable treatment. The treatment is designed for the treatment of cancer, in particular soft tissue sarcomas. This is key as STS has a very high unmet medical need. If this treatment were approved, it could be a first-line option.

Regulatory Pathway Set

Back in April, the aldoxorubicin story became evermore interesting. That’s because in mid April, CYTR announced that it had reached an agreement with the FDA surrounding a New Drug Application submission surrounding the treatment, giving aldoxorubicin a pathway toward regulatory approval. At the time, Daniel Levitt, MD, PhD, CEO and CMO at CYTR had the following to offer…

We are very pleased to have achieved clarity from the FDA regarding CytRx’s soft tissue sarcoma program… The FDA agreed that CytRx could use the application pathway for its filing that has been successfully used previously by the oncology drugs Abraxane®, Doxil® and Onivyde®. Our interaction with the FDA was part of a continued collaborative and productive relationship with the agency. We look forward to providing the study reports and analysis that can lead to the approval of aldoxorubicin for the treatment of patients with soft tissue sarcomas.”

Recently The Story Became Even More Interesting

Shortly after announcing the regulatory pathway, CYTR had another announcement to offer. This time, the company planned the release of key clinical data. That data is scheduled to be released at the 2017 American Society of Clinical Oncology (ASCO) Annual Meeting. This meeting takes place between June 2 and June 6.

During the meeting, CYTR will be releasing data from a Phase 3 clinical trial, during which aldoxorubicin was compared to the investigator’s choice in patients with relapsed and refractory soft tissue sarcomas.

The company will also be releasing data from a Phase 1 / 2 clinical trial. This trail combined aldoxorubicin with infosfamide/mesa as a first line and second line treatment for soft tissue sarcomas. With regard to this data release, CEO Daniel Levitt, had the following to offer…

The data from both of these important clinical trials evaluating aldoxorubicin in sarcomas, along with our several other complete clinical and preclinical studies, will form the basis of our planned New Drug Application submission to the U.S. Food and Drug Administration, and we are to share these more mature and detailed results in this peer-reviewed forum with the medical and scientific communities.”

Stop wasting your time! Find winning trades in minutes with Trade Ideas!

So, Where’s The Potential Buyout In All Of This?

At the end of the day, CYTR could prove to be a great buyout target for any larger company in the oncology industry. Aldoxorubicin is quickly proving to be an incredible treatment, and with the data coming at the ASCO annual meeting, the argument surrounding the potential profitability of the treatment will likely become a strong one. All this is happening while the company is still in its infancy. With a market cap of around $112 million, there’s plenty of value for a larger company that would surely have the money to acquire this gem. All in all, it’s just a matter of waiting for an offer to hit the table.

Never Miss The News Again

Do you want real-time, actionable news delivered to your inbox? Join the CNA Finance mailing list below!

Subscribe Today!

* indicates required

Leave a Comment