CytRx Corp. saw its stock rise 16 percent on Tuesday after the West L.A. biopharmaceutical firm announced positive results from a study of a potential treatment for a form of brain cancer. Shares rose 45 cents to close at $3.30.

The preliminary findings from the ongoing phase-two trial show that the drug, aldoxorubicin, prevented the disease from progressing and shrank tumors, the company said.

The U.S. Food and Drug Administration had placed a hold on enrolling new patients in clinical trials of aldoxorubicin in November, after a patient died. That caused the stock to tank, but it now appears to be on the rebound.