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View Full Version : Merck Buys CytRx Gene Technology - CRL-5861 Could Help SCI


antiquity
02-26-2002, 01:00 AM
Merck Buys CytRx Gene Technology -- The two companies are investigating a potential DNA-based HIV vaccine that incorporates CytRx's 'TranzFect' technology. The goal is a vaccine that blocks the development of the AIDS virus, or kills it.


Vancouver, Feb 25, 2002 (smallcapcenter.com via COMTEX) -- Micro-cap CytRx Corporation (NASDAQ: CYTR) has received a psychological and financial lift courtesy mega-cap Merck & Co. (NYSE: MRK) and specifically via Merck's most welcome $1-million milestone payment for use of CytRx's proprietary gene-transfer technology.

On the Street however, the welcome was a bit muted.

At 1:53 p.m. ET and after spiking to a high of 77 cents at the open, CYTR was down 4.55% or 3 cents to $0.63 on good volume of 121,700 shares as against the three-month daily average of 58,683 shares. Its 52-week range is $1.35 set on June 14, 2001 and $0.45 posted on December 17, 2001. Its most-recent-quarter (mrq) per-share book value is $0.36.

Merck scientists are investigating a potential DNA-based HIV vaccine that incorporates CytRx's 'TranzFect' technology which, just in case you're wondering, uses non-ionic block copolymers or 'poloxamers' to help move complex genetic material into target cells. The goal: develop a HIV vaccine that can block development of AIDS and also help boost the viral kill-rate in AIDS patients already being treated with anti-retroviral therapies. In other words: prevent the virus from getting past the gate or, if it's already inside, help the immune system identify and kill the killers.

To safely deliver the fragile genetic goods through the body and across the cellular barriers, the brains behind the TranzFect technology first took a look at a type of biologic chemicals called cationic lipids. These lipids have the ability to cling onto and temporarily 'open up' a cell wall and thus allow complex materials (e.g. DNA) to slip past. Unfortunately, cationic lipids happen to be toxic and the body happens to know it. When introduced into the body, the lipids are quickly broken down and shunted out.

However, although the musically named poloxamer family of non-ionic block copolymers act like cationic lipids in term of their ability to hoick DNA into a cell and thus create a killer vaccine, the poloxamers are a lot less toxic. They're also much more resistant to the rending forces of metabolization in vitro. Even better, once they deliver the DNA, they also hang around to help reinforce the immune system. And, to add to it all, poloxamers are already being safely used in other medical applications.

CytRx has an exclusive, worldwide license agreement with Merck & Co., Inc., whereby CytRx grants Merck the right to use its TranzFect technology in DNA-based vaccines targeted to HIV and three other infectious diseases. Meanwhile, as part of its TranzFect program, CytRx has developed a library of compounds, many of which have been shown to enhance the activity of conventional vaccines; the 'Optivax' program is now being trotted past a number of vaccine companies for evaluation and possible license.

CytRx has other arrows in its development-stage quiver. The flagship candidate is the novel, intra-vascular agent CRL-5861 (purified polomamer 188) used to improve micro-vascular blood flow and thus could be useful in treating acute ischemic vascular disorders such as stroke, heart attack, and vaso-occlusive crisis of sickle-cell disease.

CytRx has chosen to address the deadly problem of sickle-cell anemia via the CRL-5861 'Flocor' program. The idea is to 'lubricate' the deformed red blood cells to allow them to slip through the capillaries and thus keep the tissues oxygenated. The company believes Flocor can help ease patients through the dangerous bouts of anemia and also stave off chronic organ damage. So does the FDA; it has granted Flocor 'orphan drug status'.

More about CRL-5861 but it could also prove useful in helping chemotherapies slip deeper into tumors and also helping to treat muscular dystrophy.It's also being tested for its ability to interact with damaged nerve membranes in such a way as to "seal" the damage and restore membrane integrity. If successful, this treatment could limit the progression of secondary, post-injury damage, thereby maintaining or restoring spinal cord function.

Based in Norcross, Georgia, CytRx Corporation is a biopharmaceutical company focused on the development and commercialization of high-value human therapeutics. Its current research and development activities include CRL-5861, an intravenous agent for treatment of sickle cell disease and other acute vaso- occlusive disorders, and TranzFect, a delivery technology for DNA-based vaccines. CytRx has licensed TranzFect to Merck & Co., Inc. for use in Merck's efforts to development DNA-based vaccines for HIV and three other infectious diseases. All other uses of TranzFect for enhancement of viral or non-viral delivery of polynucleotides (such as DNA and RNA) were recently licensed to Vical Incorporated. CytRx has a research pipeline in the areas of muscular dystrophy, cancer, spinal cord injury, vaccine delivery, gene therapy and food-animal feed additives.

For the nine months ended September 30, 2001, CytRx revenues fell 52% to $501,000. Net loss from continuing operations rose 46% to $3.4 million. Results reflect lower grant income and the overall slowing of the economy, partially offset by a reduction in research and development expenditures.

There is no First Call covering analyst for CytRx Corporation. However, Smallcapcenter.com's advanced research department gave CYTR a signal stockscore of 79 at 2:09 p.m. EDT on Thursday.

A company's stockscore is an unbiased summary of numerous technical analysis indicators like volume and momentum, which are combined to produce a value on a scale of 1-100 with 100 being the highest level.

By David Leidl

Copyright 2001 Stockgroup.com, All rights reserved.

[This message was edited by seneca on Feb 26, 2002 at 04:17 AM.]

antiquity
03-26-2002, 12:17 PM
CytRx Reports 2001 Financial Performance; Reports Positive Cash Flow for Year


ATLANTA, March 26 /PRNewswire-FirstCall/ -- CytRx Corporation (Nasdaq: CYTR) today announced its financial performance for the 12-month period ended December 31, 2001. For the year, the Company reported a net loss of $931,000 ($0.09 per share) compared to 2000's loss of $348,000 ($0.04 per share). Loss from continuing operations in 2001 totaled $931,000 ($0.09 per share) compared to a loss of $1,147,000 ($0.12 per share) realized in 2000. Total revenues for 2001 were $4,399,000 versus $3,328,000 in 2000.

For the fourth quarter of 2001, CytRx reported net income of $2,448,000 ($0.23 per share) compared to net income of $1,161,000 ($0.11 per share) reported for the comparable period in 2000. Total revenues for the fourth quarter of 2001 were $3,899,000 versus $2,290,000 in 2000. The Company noted that revenues for the fourth quarter of 2001 includes a $3,750,000 signature payment by Vical, Incorporated for their license of CytRx's TranzFect technology, while the fourth quarter of 2000 includes a $2,000,000 signature payment by Merck & Co., Inc. for their license of TranzFect.

CytRx reported positive operating cash flow for 2001, with cash balances of $5.3 million at December 31, 2001, as compared to $3.8 million at December 31, 2000. The Company noted that the disparity between its reported net loss and cash flow for 2001 is primarily due to non-cash expense charges of $1.4 million recorded during 2001 related to the issuance of stock purchase warrants to its investment banker and other consultants.

Jack J. Luchese, CytRx's President & CEO, commented, "Our activities during 2001 have set the stage for a reinvigoration of CytRx in 2002 and beyond. With the license to Vical this year and the license to Merck in 2000, we now have two strategic partnerships for TranzFect and one for CRL-8761, our food animal growth promoter. We filed two important grant applications for CRL-5861 (FLOCOR) that if approved may aid in future development activities in the sickle cell area. We also expanded the potential of CRL-5861 by initiating or completing pre-clinical studies in cancer, muscular dystrophy and spinal cord compression injury. And now, our proposed merger with Global Genomics Capital will add a genomics component to CytRx to create an exciting portfolio of technologies."

About CytRx Corporation

CytRx Corporation is a biopharmaceutical company focused on the development and commercialization of high-value human therapeutics. The Company's current research and development activities include CRL-5861, an intravenous agent for treatment of sickle cell disease and other acute vaso- occlusive disorders, and TranzFect, a delivery technology for DNA-based vaccines. CytRx has licensed TranzFect to Merck & Co., Inc. for use in Merck's efforts to development DNA-based vaccines for HIV and three other infectious diseases. All other uses of TranzFect for enhancement of viral or non-viral delivery of polynucleotides (such as DNA and RNA) were recently licensed to Vical, Incorporated. CytRx has a research pipeline in the areas of muscular dystrophy, cancer, spinal cord injury, vaccine delivery, gene therapy and food animal feed additives.

CAUTIONARY NOTICE ABOUT FORWARD-LOOKING STATEMENTS

This press release may contain forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, that 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 proposed merger not being completed, the integration of CytRx and Global Genomics, available financing for continued operations and the company's inability to successfully develop and market its technology. Additional uncertainties and risks are described in the CytRx's most recently filed SEC documents, such as its most recent annual report on Form 10-K, all quarterly reports on Form 10-Q and any current reports on Form 8-K filed since the date of the last Form 10-K. 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.

ADDITIONAL INFORMATION AND WHERE TO FIND IT

In connection with the proposed merger, CytRx will file a proxy statement with the Securities and Exchange Commission. INVESTORS AND SECURITY HOLDERS ARE ADVISED TO READ THE PROXY STATEMENT WHEN IT BECOMES AVAILABLE, BECAUSE IMPORTANT INFORMATION WILL BE CONTAINED THEREIN. Investors and security holders may obtain a free copy of the proxy statement (when available) and other documents filed by CytRx with the Commission at the Commission's web site at http://www.sec.gov. Free copies of the proxy statement, once available, and CytRx's other filings with the Commission may also be obtained from CytRx by directing a request to CytRx Corporation, 154 Technology Parkway, Norcross, Georgia 30092, Attn: Mark W. Reynolds.

PARTICIPANTS IN THE SOLICITATION

CytRx and its directors, executive officers and other members of its management may be soliciting proxies from CytRx stockholders in favor of the issuance of shares of CytRx common stock in the merger. Information concerning persons who may be considered participants in the solicitation of CytRx's stockholders under the rules of the Commission is set forth in public filings filed by CytRx with the Commission and will be set forth in the proxy statement when it is filed with the Commission.

For Additional Information, Please Contact:

With the Company:

Mark Reynolds

Vice President, Finance

770-453-0121

reynoldm@cytrx.com

Broker Relations:

Loren Brown

Madison & Wall Worldwide, Inc.

407-682-2001

Chris Chappell
03-26-2002, 02:26 PM
Seneca. The more the merrier, so to speak.

With enough companies coming to the sci world someone is bound to breakthrough on something.

It's a numbers game and only one has to be successful.

Onward and Upward!

antiquity
05-07-2002, 01:04 PM
CytRx Corporation Reports First Quarter Financial Results


ATLANTA, May 7 /PRNewswire-FirstCall/ -- CytRx Corporation (Nasdaq:CYTR) today announced its financial performance for the three-month period ended March 31, 2002. For the quarter, the Company reported a loss of $179,000, or $0.02 loss per share, versus a loss of $1,157,000, or $0.11 loss per share, for the comparable quarter of 2001.

The Company noted that results for the first quarter of 2002 include a $1,000,000 milestone payment from Merck & Co., Inc. pursuant to Merck's license of CytRx's TranzFect technology.

Jack J. Luchese, CytRx's President & CEO, commented, "On the scientific front, the most significant event of the first quarter for CytRx was the initiation by Merck of a Phase I human study in HIV patients of an experimental DNA-based vaccine incorporating our TranzFect technology. We are very excited about this program and look forward to communicating further results as Merck shares information of their progress with us."

"On the corporate development side," Luchese continued, "we announced in February our proposed merger with Global Genomics Capital. This combination of pharmaceutical and genomics technology will provide our shareholders a technology portfolio with potentially more balance and breadth. Pending regulatory approval of this transaction we expect to submit the merger to our shareholders for approval in the third quarter of this year."

About CytRx Corporation

CytRx Corporation is a biopharmaceutical company focused on the development and commercialization of high-value human therapeutics. The Company's current research and development activities include CRL-5861, an intravenous agent for treatment of sickle cell disease and other acute vaso- occlusive disorders, and TranzFect, a delivery technology for DNA-based vaccines. CytRx has licensed TranzFect to Merck & Co., Inc. for use in Merck's efforts to develop DNA-based vaccines for HIV and three other infectious diseases. All other uses of TranzFect for enhancement of viral or non-viral delivery of polynucleotides (such as DNA and RNA) were recently licensed to Vical, Incorporated. CytRx has a research pipeline in the areas of muscular dystrophy, cancer, spinal cord injury, vaccine delivery, gene therapy and food animal feed additives.

CAUTIONARY NOTICE ABOUT FORWARD-LOOKING STATEMENTS

This press release may contain forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, that 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 proposed merger not being completed, the integration of CytRx and Global Genomics, available financing for continued operations and the company's inability to successfully develop and market its technology. Additional uncertainties and risks are described in the CytRx's most recently filed SEC documents, such as its most recent annual report on Form 10-K, all quarterly reports on Form 10-Q and any current reports on Form 8-K filed since the date of the last Form 10-K. 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.

ADDITIONAL INFORMATION AND WHERE TO FIND IT

In connection with the proposed merger, CytRx will file a proxy statement with the Securities and Exchange Commission. INVESTORS AND SECURITY HOLDERS ARE ADVISED TO READ THE PROXY STATEMENT WHEN IT BECOMES AVAILABLE, BECAUSE IMPORTANT INFORMATION WILL BE CONTAINED THEREIN. Investors and security holders may obtain a free copy of the proxy statement (when available) and other documents filed by CytRx with the Commission at the Commission's web site at http://www.sec.gov . Free copies of the proxy statement, once available, and CytRx's other filings with the Commission may also be obtained from CytRx by directing a request to CytRx Corporation, 154 Technology Parkway, Norcross, Georgia 30092, Attn: Mark W. Reynolds.

PARTICIPANTS IN THE SOLICITATION

CytRx and its directors, executive officers and other members of its management may be soliciting proxies from CytRx stockholders in favor of the issuance of shares of CytRx common stock in the merger. Information concerning persons who may be considered participants in the solicitation of CytRx's stockholders under the rules of the Commission is set forth in public filings filed by CytRx with the Commission and will be set forth in the proxy statement when it is filed with the Commission.

CYTRX CORPORATION

CONDENSED FINANCIAL SUMMARY

(amounts in thousands, except per share data)

Three Months Ended

March 31,

2002 2001

STATEMENT OF OPERATIONS

Revenues:

Service revenues $22 $26

License fees 1,000 ---

Interest income 32 61

Grant and other income 87 96

1,141 183

Expenses:

Cost of service revenues 11 13

Research and development 319 448

Selling, general and administrative 990 879

1,320 1,340

Net loss $(179) $(1,157)

Basic and diluted income (loss) per common share $(0.02) $(0.11)

BALANCE SHEET HIGHLIGHTS

Cash & cash equivalents $4,989 $2,845

Total current assets $5,262 $2,967

Total assets $7,604 $5,785

Total liabilities $747 $814

Common shares outstanding 11,565 10,138