CytRx Corp. on Wednesday said that it has raised around $7 million to develop its experimental cancer drug portfolio by selling its remaining equity interest in a Massachusetts company spun off several years ago.
The Los Angeles biotech had been the largest single shareholder of Worcester-based RXi Pharmaceuticals Corp., controlling about 14 percent of shares outstanding. While neither company has products on the market, RXi’s stock has been popular among investors largely due to its trendier approach to developing cancer drugs.
The company’s RNA interference technology works by blocking the action of genes that lead to certain diseases. RXI is in a partnership with Generex Biotechnology Corp. to develop cancer-fighting vaccines.
CytRx, meanwhile, is developing three experimental drugs based on a different technology to treat a variety of cancers, including some rare forms of leukemia, lung and brain cancers.
“We now have additional funds to support our aggressive clinical development agenda,” said Chief Executive Steven Kriegsman in a statement.
In Nasdaq trading Wednesday, CytRx shares closed up 44 cents, or 4.8 percent, to 92 cents, while RXi closed down 6 cents, or 2.4 percent, to $2.42.
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