– Monetization of Non-core Asset Provides Additional Financial Resource with No Share Dilution –
– Shares of ADVENTRX Potentially to be Received by CytRx Valued at Approximately $6.8 Million Based on Market Price on April 8, 2011 –
LOS ANGELES--(BUSINESS WIRE)-- CytRx Corporation (Nasdaq: CYTR), a biopharmaceutical company specializing in oncology, has received approximately 163,000 shares of common stock in ADVENTRX Pharmaceuticals, Inc. (NYSE Amex: ANX) in exchange for its 19.1% ownership position in SynthRx, Inc., following the completion of ADVENTRX’s previously announced acquisition of SynthRx. The last sale price of ADVENTRX shares on the NYSE Amex on April 8, 2011 was $2.34.
“This transaction epitomizes our strategy to monetize non-core assets to support advancement of our oncology pipeline without diluting shareholders,” said President and CEO Steven A. Kriegsman. “If all milestones under this agreement are achieved, we could receive up to 2.9 million additional shares for a total ownership stake of 7.8% in ADVENTRX. We also are eligible to receive royalty payments from future sale of products based on our former copolymer technologies that we licensed to SynthRx.”
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 is conducting a pharmacokinetic clinical trial in brain cancer. With its tumor-targeting pro-drug candidate INNO-206, CytRx has initiated an open-label Phase 1b safety and dose escalation clinical trial in patients with advanced solid tumors, and plans to initiate Phase 2 proof-of-concept clinical trials as a treatment for pancreatic cancer and soft tissue sarcomas. CytRx's pipeline also includes tamibarotene, which it is testing in patients with non-small-cell lung cancer and which is in a registration clinical trial as a treatment for acute promyelocytic leukemia (APL). 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 the risk that the triggering events for the milestone payments to SynthRx stockholders, including CytRx, may never occur, including risks and uncertainties related to the clinical development of 188, risks related to the future market value of ADVENTRX common stock, risks related to CytRx's need for additional capital or strategic partnerships to fund its ongoing working capital needs and development efforts, 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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INDUSTRY KEYWORDS: Health Biotechnology Oncology Pharmaceutical Research Other Science Science