|CytRx issues news regarding official launch of Phase 2 trial|
|By Staff and Wire Reports|
|Tuesday, 24 November 2009 11:10|
Just as readers of BioMedReports were told, CytRx Corporation (NASDAQ:CYTR) announced the first of two key news developments for the company.
See this morning's Reuters Story here.
The company says it plans to initiate a multinational Phase 2 clinical trial with its doxorubicin prodrug INNO-206 as a treatment for patients with advanced soft tissue sarcomas who have failed surgery and radiation.
For those of you who may not be familiar, soft tissue sarcomas are cancers that are formed in the muscle, fat, fibrous tissue, blood vessels or other supporting tissue of the body.
In the open-label Phase 2 clinical trial, 50 patients will receive INNO-206 once every three weeks for four consecutive cycles. The study will be conducted in approximately 25 study centers in the U.S., Europe and India. Following trial initiation, patient enrollment is expected to be completed in approximately 12 months. These patients will be evaluated on an ongoing basis for overall tumor response and progression-free survival.
Please take not that this will be an opek-label study, which means the scientists and doctors who will be conducting the trials will be able to announce results to the investment and medical community along the way. Any positive news regarding this trial, could significantly impact share prices as those announcements are made.
In addition, BioMedReport readers are expecting the second (and perhaps more important) news item from the company to hit the wires in the coming days. As we reported on Monday, this news could be significant if it involves the lifting of the controversial clinical hold which the FDA placed on the company's Phase IIb clinical trial for Arimoclomol- a treatment for amyotrophic lateral sclerosis (ALS or Lou Gehrig's disease).
When the hold was placed on those trials, the company's share price was affected significantly. The low price target from analysts now stands at $2 per share. The high target is $3 per share. See our chart and earlier story here.
Based on our interviews with the company CEO, CFO and others last Friday, we believe these price targets are realistic within the short term.
In the 12 to 15 month range, share price targets may continue to increase significanlty, especially since the cash equiped company seems determined to partner, acquire or develop more drugs for their oncology portfolio. Sources tell BioMedReports that some potential acquisition targets have drugs in both Phase 2 and 3 trails. The right acquisition or partnership could significanlty add value to the company, so while the share price appears to be rebounding off lows, we believe those shares are still undervalued and will continue to rise in the days, months ahead.