INFORMATION AND DD ABOUT CYTR
The Pipeline
With a very interesting pipeline, with 3 compounds in mid-stage clinical development:
-INNO-206."For use against solid tumors and soft tissue sarcoma".
This is what i call the “star” of the company, not only because the large range of possible applications (pancreatic cancer, ovarian cancer, multiple myeloma, breast cancer, gastric cancer, Hodgkin’s Lymphoma), but also because the impressive results that CYTR have already reported and were described in previous articles.
In December 2011, CytRx began the Phase IIb clinical trial with INNO-206 in patients with soft tissue sarcomas.
BAFETINIB(INNO-406)
It is a potent, orally available, rationally designed, Bcr-Abl, Lyn and Fyn kinase inhibitor, which was developed as a third-line treatment for patients with CML and certain forms of acute myeloid leukemia. Once more, positive and promising results of phase II were achieved and presented at ASH conference.
CytRx is conducting phase 2 trials in refractory/relapsed B-CLL.
TAMBIBAROTE
Is a novel synthetic retinoid compound, that was approved and marketed in Japan (CytRx has the rights to North America and Europe) for a rare form of leukemia, and is designed to potentially avoid toxic side effects by binding to its molecular target more selectively than all-trans retinoic acid (ATRA), the current first-line treatment for APL.
CytRx is conducting a global Phase 2b clinical trial with tamibarotene in a non-small cell lung cancer and Phase 2 trial in United States for APL.
The Company
What are interesting to evaluate is the rich and well conduct pipeline and the low market value. Why? Because is precisely in this divergence that lies the richness of CytRx, the low valuation could result in an important opportunity for new shareholders.
For those that are used to trade biotech companies there are three possible attractions for 2012:
1) A big pharmaceutical company could buy CytRx;
2) Strong partnerships for the development of CytRx new drugs;
3) June 2012: Presentation at American Society of Clinical Oncology (ASCO) of Phase 1b/2 clinical trial with INNO-206 primarilyin patients with soft tissue sarcoma.
1) From the point of view of the shareholders the first point would be a major achievement, not only because the immediately increase in share price (usually the prize given for share is much higher than the current share price, see the example from Anadys Pharmaceuticals “ANDS”), but also a major goal in order to finish the clinical trials and at end place the drugs into the market.
Why should investors consider this hypothesis as a possibility? As shown above, the diverse pipeline that the company has been creating could act as an open book to bigger pharmaceutical companies that are interested in increasing their oncology portfolios, or creating new cancer platforms with drugs that are really effectiveness.
Note also that CytRx has reported cash, cash equivalents and marketable securities of $41.4 million as of September 30, 2011 and no debt. This factors are important to understand how well manage the company are and well oriented to the future. And conjugating that with the low market capitalization could actually boost the acquisition of CytRx.
2) The second point is not seen as possibility, but also as a reality. Actually, CytRx has the goal to “partner bafetinib following the phase 2 trial”. It is normal that CytRx management would like to strengthen company’s balance sheet, and they did that in last offering, however the company´s share price declined in reaction to the dilution. With partnership CytRx will be able to advance its clinical programs and receive milestones payments for the achievements (phase III results, FDA approval and at end sales) without more dilution.
3) Another important goal for 2012 that could boost the CytRx share price is the presentation at American Society of Clinical Oncology (ASCO) of Phase 1b/2 clinical trial with INNO-206 primarily in patients with soft tissue sarcoma. And those are expected to be very positive one´s, because favorable results have already been shown by INNO-206 in clinical trials including multiple partial responses. And with speculative buys could send the share price to $1-$1,50.
From my point of view shares of CytRx could in short term run to the 200 day average ($0.47) and at same time the 20 day average is above the 50 day average what is good bullish sign.
Moving into 2012, i consider that CytRx is a well capitalized company with important on going trials and major goals that are going to be presented to the shareholders. So, my bet here goes on the long term