CytRx Corporation (NASDAQ: CYTR)
CytRx Corporation is having a rough day in the market today, and for good reason. The company announced poor results from a recent Phase 3 clinical trial. As a result, the stock took the plunge. Today, we’ll talk about what we saw from the results, how the market is reacting to the news, and what we can expect to see from CYTR moving forward. So, let’s get right to it…
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CYTR Announces Phase 3 Aldoxorubicin Results
CytRx has been working on a treatment for relapsed or refractory soft tissue sarcomas, also known as STS. Today, the company announced the results of a global, randomized, Phase 3 trial surrounding the treatment. During the trial, aldoxorubicin was compared to a therapy that the investigators chose. Unfortunately, in comparison, the results simply were not positive.
During the study, the goal was to show a significant difference between aldoxorubicin and the investigator’s choice therapy for progression free survival, with a median of 4.17 months and 4.04 months, respectively. Unfortunately, this primary endpoint was not met. However, this endpoint was not met due to lack of data. In the beginning of the trial, CYTR faced issues that led to late enrollments. As a result, there wasn’t enough time to offer this data. The company plans to assess this data at a future date.
Nonetheless, there was definitely some positive data released here. When it comes to objective response rate and disease control rate, CYTR explained that the aldoxorubicin arm did significantly better than the investigator’s choice arm. Also, the treated patients will continue to be followed to assess overall survival rate, a secondary endpoint in the study. In a statement, Sant Chawla, M.D., Director of the Sarcoma Oncology Center in Santa Monica, California and a principle investigator in the study, and had the following to offer:
“While results from this current analysis are immature, a near doubling of response rates with aldoxorubicin suggests a highly active therapy which may benefit certain patients with soft tissue sarcoma… Because enrollment was interrupted by a clinical hold, both PFS and response data need to be analyzed at a future date to account for patients enrolled later in the trial. I look forward to this subsequent analysis providing a more complete understanding of aldoxorubicin’s potential in this very challenging disease.”
This statement was followed up by Steven A. Kriegsman, Chairman and CEO at CytRx. Here’s what he had to say:
“In over 550 patients treated to date, aldoxorubicin has demonstrated anti-tumor activity in multiple tumor types and has shown a manageable safety profile… With approximately 68.2 million in cash and equivalents as o our last 10-Q filing, CytRx is funded through the next Phase 3 STS trial analysis and through a readout of our global Phase 2b trial of aldoxorubicin in small cell lung cancer. We are deeply grateful for the continued support and commitment of the patients, their families, the investigators and clinical support professionals participating in the Phase 3 trial.”
How The Market Reacted To The News
As investors, we know that the news moves the market. When it comes to clinical trial data, we are likely to see big moves. In this particular case, the news was overwhelmingly negative. As a result, we’re seeing an incredibly negative reaction in the market. Currently (12:48), CYTR is trading at $1.02 per share after a loss of $1.49 per share, or 59.36%, thus far today.
What We Can Expect To See Moving Forward
Moving forward, I have a relatively mixed opinion of what we can expect to see from CytRx. In the short term, we’re likely to see incredible volatility. After all, announcing that data was not sufficient to meet the primary endpoint in a study is a big deal.
Nonetheless, in the long run, there’s still a bit of hope here. The secondary data was overwhelmingly positive. While it is a bit early, we are seeing some promising signs. Also, CYTR is funded to make it through future studies. If these studies go well, we could see big gains in the value of the stock. At the end of the day, this could be a big opportunity. However, if you decide to move on it, make sure to move with caution.
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What Do You Think?
Where do you think CYTR is headed moving forward and why? Join the discussion at TalkTRENDZ from CNA Finance!
[Image Courtesy of Wikipedia]