CytRx Stock Offering to Finance Drug Development

0

CytRx Corp. late Tuesday announced a primary offering of common stock to raise money for development of its experimental cancer drugs.

After the Tuesday markets closed, the West L.A. biotech company said it had filed a prospectus with the U.S. Securities and Exchange Commission. The prospectus did not list the number of shares to be sold or the amount of money that the company hopes to raise. Cytrx has 109 million shares outstanding.

Cowen and Co. LLC and Roth Capital Partners LLC will be underwriters of the offering.

CytRx intends to use proceeds for clinical development of three drug candidates for general corporate purposes. The company this month reported early clinical trial results on its soft tissue cancer drug Inno-206. The results indicated that the drug can safely deliver four times the standard dose of a common chemotherapy drug that cannot normally be used at high dosages due to its toxicity. A mid-stage clinical trial is scheduled to begin later this year.

Prior to the stock offering press release, Cytrx shares closed down 5 cents, or 7 percent, to 64 cents on the Nasdaq, and fell another 6 percent in after-market trading.

No posts to display