Shares of CytRx Corp. fell nearly 6 percent Friday after the cancer drug developer released its quarterly report showing a steep rise in research and development spending.
The Los Angeles medical company reported net income of $1.6 million for the quarter ended Sept. 30, compared with a loss of $600,000 for the same period a year earlier.
Research and development expenses rose 88 percent for the quarter to $3.2 million. CytRx reported that it recently met with the U.S. Food and Drug Administration to discuss a cancer treatment trial. It plans to seek evaluation and guidance for the trial from the FDA.
Last month the company completed a public offering of 9.2 million shares. It raised $23 million to fund the clinical development of its drug candidates and corporate expenses.
Shares closed down 12 cents, or nearly 6 percent, to $1.96 on the Nasdaq.