CytRx touts "game changing" $120M pact with Orphazyme

LA-based CytRx ($CYTR) is touting a new pact covering a package of experimental treatments with Denmark's Orphazyme, a two-year-old biotech targeting new treatments for rare genetic lysosomal diseases. The biotech agreed to pay CytRx up to $120 million in milestones and an undisclosed upfront payment. And the LA biotech boasted that the deal clears the way for the company to focus on its pipeline of oncology drugs. Its shares jumped a little more than five percent on the news.

The CytRx molecular chaperone portfolio includes three drug candidates--arimoclomol, iroxanadine and bimoclomol--which are "orally administered molecular chaperone amplifiers." The compounds collectively have been tested in 13 Phase I and six Phase II clinical trials.

"This could be a game-changing transaction for CytRx with an ultimate potential value that exceeds our current market capitalization," boasted President and Chief Executive Officer Steven A. Kriegsman. "It illustrates our exceptional execution of a strategy to acquire assets and add value, in this case through multiple clinical and preclinical trials, then monetize them to support our focus on oncology."

- here's the CytRx release