LadRx Corp (LADXD)

[Ecomike]

We have the quarterly report today.

Some how I missed this news, the first half of this:

“Our financial resources were strengthened through a recent public stock offering and are now ample to reach critical inflection points in our aggressive oncology clinical development programs,” added Mr. Kriegsman. “We also have taken actions to improve our future financial position by monetizing our non-oncology assets. In May of this year, we sold our molecular chaperone assets to Orphazyme ApS, a privately-held, Copenhagen, Denmark-based biotechnology company, in a transaction that could bring us as much as $120 million if all developmental milestones are met, in addition to potential royalty payments.
The prior month, we received 163,000 shares of ADVENTRX Pharmaceuticals (NYSE Amex: ANX) common stock (of which approximately 20% are being held in escrow) in exchange for our 19.1% ownership in SynthRx, Inc. If all milestones under that agreement are achieved, we could receive up to 2.9 million additional shares of ADVENTRX, with a value of over $7.0 million based on the last sale price of ADVENTRX shares on the NYSE Amex on August 5, 2011 of $2.46, and potential royalty payments.”

CytRx reported cash, cash equivalents and marketable securities of $26.1 million as of June 30, 2011. In July 2011, the Company raised net proceeds of approximately $19.1 million through an underwritten public offering.

I thought that sale of new shares was pending, not already done? Do we know what the price was for them? If I read this right, they now have 45.2 million in cash and marketable securities? Plus 2 deals listed above, plus 3 major blockbuster drugs in the pipeline! Fidelity shows latest stock count as 149,058,000, so they sold about 40 million new shares for 19.1 million dollars (after expenses no doubt). So This may be a good long term bottom here at the .33 to 40 area!!!! In fact the current assets (ignoring the drug pipeline and deals they have), cash and securities in other words, divided by stock shares outstanding is about 30 cents a share right now!!!! And the new shares were sold for nearly 50 cents a share!!! If I read the last SEC filing on the new shares right, they are currently restricted, and are not yet registered for retail sale? (unless I missed something, but rest assured, they are not selling those news shares at a loss!)

About CytRx’s Oncology Portfolio

CytRx has a pipeline of oncology drug compounds that offer broad market opportunities, including bafetinib, tamibarotene and INNO-206.

INNO-206

CytRx holds the exclusive worldwide rights to INNO-206, a tumor-targeted doxorubicin conjugate. INNO-206 was designed to reduce adverse events by controlling drug release and preferentially targeting solid tumors. The Company recently announced the delivery of INNO-206 at doses more than 4-times higher than the standard doxorubicin dose in its open-label Phase 1b safety and dose escalation clinical trial in soft tissue sarcomas with INNO-206. CytRx plans to initiate a Phase 2b clinical trial as a treatment for soft tissue sarcomas in 2011, following the Phase 1b dose escalation safety trial. Previous studies have shown INNO-206 efficacy in tumor models of breast, ovarian, small cell lung cancer, renal cell cancer and pancreatic cancers. Additionally, a recently announced study showed that low doses of INNO-206 and doxorubicin combined achieved complete remission in aggressively growing in vivo ovarian cancer tumors. Several other chemotherapy agents have been attached to the linker used for INNO-206, including paclitaxel, camptothecin, cisplatin and methotrexate, and may be incorporated into future clinical development by the Company.

Bafetinib

CytRx holds rights to bafetinib (formerly known as INNO-406) in all territories except Japan. Bafetinib is a potent, orally available, rationally designed, Bcr-Abl, Lyn and Fyn kinase inhibitor, which was being developed as a third-line treatment for patients with CML and certain forms of acute myeloid leukemia (AML) that are refractory or intolerant of other approved treatments. In November 2008, CytRx announced that bafetinib demonstrated clinical responses in patients with CML in an international, open-label Phase 1 dose-ranging clinical trial conducted in patients with CML and other leukemias that have a certain mutation called the Philadelphia Chromosome (Ph+) and are intolerant of or resistant to Gleevec® and, in some cases, second-line tyrosine kinase inhibitors such as dasatinib and nilotinib. In April 2010, the Company announced that bafetinib had received official notification from the Committee for Orphan Medicinal Products (COMP) of the European Medicines Agency (EMEA) that a positive opinion was made regarding the application for orphan medicinal product status for the treatment of chronic myeloid leukemia (CML). Bafetinib also has been granted Orphan Drug Status for the treatment of Ph+ CML by the U.S. Food and Drug Administration (FDA).

Tamibarotene

CytRx holds the North American and European rights to tamibarotene as a treatment for certain cancers. Tamibarotene is an orally available, rationally designed, synthetic retinoid compound 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. Tamibarotene is being evaluated for efficacy and safety in a Phase 2 trial as a third-line treatment for APL. The U.S. Food and Drug Administration (FDA) has granted Orphan Drug Designation for APL and Fast Track Designation for the treatment of adult patients with relapsed or refractory APL following treatment with ATRA and ATO. Tamibarotene also has been granted orphan medicinal product status by the European Medicines Agency for the treatment of APL. The estimated annual market potential in the U.S. and Europe for tamibarotene as a treatment for refractory, maintenance and front-line therapy in APL is up to $100 million. In addition, the Company has initiated a Phase 2b clinical trial of tamibarotene as a treatment for stage IIIb and IV non-small-cell lung cancer.