– Non-Taxable Grant is Based on U.S. Secretary of Health and Human Services’ Evaluation of CytRx’s Oncology Programs –
– Improves Financial Position to Support Continued Development of Promising Oncology Drug Candidates –
LOS ANGELES--(BUSINESS WIRE)-- CytRx Corporation (Nasdaq: CYTR), a biopharmaceutical company specializing in oncology, today announced that it has been awarded a nontaxable grant of approximately $735,000 related to its INNO-206, tamibarotene and bafetinib programs under the Qualifying Therapeutic Discovery Project Program included in the Patient Protection and Affordable Care Act, H.R. 3590, signed into law in March 2010. The grant is being allocated in two tranches, with $635,000 to be received in 2010 and $100,000 in 2011.
The grant was awarded following CytRx’s submission for consideration of its oncology research and development projects to the U.S. Secretary of Health and Human Services. Among the determining factors used by the Secretary in allocating funds were those projects that showed potential to produce new therapies, address unmet medical needs, reduce the long-term growth of healthcare costs and advance the goal of curing cancer. Also taken into consideration were the potential for projects to create and sustain high-quality, high-paying U.S. jobs and to advance U.S. competitiveness in the fields of life, biological and medical sciences.
“We are delighted to be the beneficiary of this grant, which provides us with additional, non-dilutive capital resources to support continued progress in developing our promising oncology drug candidates,” said President and CEO Steven A. Kriegsman. “This grant was allocated following government review of our project submissions, which we believe represents an acknowledgement of the potential of our oncology programs and our efforts to commercialize novel, value-added drugs to treat cancer patients.”
Qualifying Therapeutic Discovery Project Program grants or tax credits are awarded to companies with fewer than 250 employees for projects related to the treatment or prevention of diseases through the conduct of pre-clinical or clinical studies.
About CytRx Corporation
CytRx Corporation is a biopharmaceutical research and development oncology company engaged in the development of high-value human therapeutics. The CytRx oncology pipeline includes three programs in clinical development for cancer indications: bafetinib, tamibarotene and INNO-206. The Company is evaluating bafetinib in the ENABLE Phase 2 clinical trial in high-risk B-cell chronic lymphocytic leukemia (B-CLL) and the PROACT Phase 2 clinical trial in advanced prostate cancer, and plans to begin a pharmacokinetic clinical trial in brain cancer. With its tumor-targeting pro-drug candidate INNO-206, CytRx plans to initiate Phase 2 proof-of-concept clinical trials as a treatment for pancreatic cancer and soft tissue sarcomas, following an abbreviated safety trial. In addition, CytRx is developing two drug candidates based on its industry-leading molecular chaperone technology, which aims to repair or degrade misfolded proteins associated with disease. CytRx also maintains a 17% equity interest in publicly traded RXi Pharmaceuticals, Inc. (NASDAQ: RXII). For more information on the Company, visit http://www.cytrx.com.
This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. Such statements involve risks and uncertainties that could cause actual events or results to differ materially from the events or results described in the forward-looking statements, including risks or uncertainties related to the outcome, timing and results of CytRx's clinical programs for its oncology drug candidates, uncertainties regarding regulatory approvals for current and future clinical testing of its oncology drug candidates and the scope of the clinical testing that may eventually be required by regulatory authorities for its oncology drug candidates, the significant time and expense that will be incurred in developing any of the potential commercial applications for its oncology drug candidates, risks related to CytRx's need for additional capital or strategic partnerships to fund its ongoing working capital needs and development efforts, including any future clinical development of its oncology drug candidates, risks related to the future market value of CytRx's investment in RXi and the liquidity of that investment, and the risks and uncertainties described in the most recent annual and quarterly reports filed by CytRx with the Securities and Exchange Commission and current reports filed since the date of CytRx's most recent annual report. All forward-looking statements are based upon information available to CytRx on the date the statements are first published. CytRx undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
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KEYWORDS: United States North America California
INDUSTRY KEYWORDS: Health Biotechnology Oncology Pharmaceutical Research Science