CytRx Corporation (CYTR) Stock: Where To Next?


CytRx Corporation (NASDAQ: CYTR) is having a rough start to the trading session in the pre-market hours today. The declines come after the company offered multiple presentations at the 2017 ASCO meeting with regard to aldoxorubicin. While there was a concerning statistic in one of the two presentations, the data was positive overall. At the moment (8:59), CYTR is trading at $0.68 per share after a loss of $0.14 per share (17.07%) thus far today.

This Is Likely A Buying Opportunity

The great Warren Buffet has said that the time to buy is when fear is high. In this particular case, I believe he is correct. You see, as mentioned above, CytRx Corporation released data with regard to aldoxorubicin at the 2017 ASCO meeting. While Adam Feuerstein and others are focusing on the one bit of news that wasn’t great, there is plenty to be excited about.

First and foremost, let’s address the elephant in the room. In the first presentation offered, CYTR provided Phase 3 aldoxorubicin data in the treatment of soft tissue sarcoma. The concern here is that the treatment showed no difference in overall survival when compared to the investigator’s choice of therapy. This one bit of news is causing declines while investors seem to be ignoring the rest of the data.

When it comes to aldoxorubicin, while the Phase 3 data did not show an extension of overall survival, there was extended median progression-free survival, no signs of alopecia, and the treatment was relatively well-tolerated. However, that wasn’t the only positive news.

Ultimately, the most positive data came from the company’s combination study. In this study, patients were given aldoxorubicin along with 14 continuous days of infusion of ifosfamide/Mesna. This data proved to be overwhelmingly positive. First and foremost, CYTR reported 73% tumor reduction following 2 cycles of the combination treatment. The company also reported significant calcification and over 20% tumor reduction following 14 cycles of aldoxorubicin and 6 cycles of ifosfamide/Mesna. Also, among the patients who proceeded with post-treatment surgery, half of the patients had tumor necrosis of 90% or more, and 9 of 10 had tumor necrosis of 70% or more.

Considering the data above, the declines in the stock are likely a reaction to various reports in which authors are only focusing on the negative. The truth is that the negative isn’t necessarily bad news. Sure OFS did not increase compared to the investigator’s choice, but at the end of the day, there was plenty of positive news, especially on the combination treatment side. However, you don’t have to take my word for it, just look at the presentations offered by CYTR for yourself! As a result, my view of the company remains unchanged.

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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 company’s ongoing work with regard to aldoxorubicin and are excited to see continued positive results. We’ll continue to follow the story closely and bring the news to you as it breaks!

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