CytRx Corporation (NASDAQ:CYTR) released its 4Q2015 results, with a loss of $58.6 million or a negative EPS of $0.97. Additionally, the figures missed analyst expectations of -$0.20 per share. CytRx Corporation is an R&D company, in the biopharmaceutical industry, with a focus on oncology. The company was only able to generate revenue of $100,000 during the quarter. The 4Q2015 results widened the FY2015 loss for CYTR to $0.97 per share.
During the earnings call the company CEO, Steven A. Kriegsman, highlighted 2015 as an important year for the company. He also added that the company was able to complete the enrollment for the phase-3 clinical trials of aldoxorubicin, one quarter prior to the schedule. The CEO also highlighted the appointment of a new CCO and three new directors to the board.
It is expected that the results from the aforementioned trial would be released during 2Q2016. Added to this, the company has also acquired a $40 million worth of long-term debt facility, from Hercules Technology Growth Capital, during February 2016. CYTR has received $25 million, so far and is expected to receive $15 million more, upon achieving certain milestones. Furthermore, DK049, a new drug from the company, which has shown significant promise in pre-clinical trials, has been nominated for clinical development.
During the 4Q2015, CytRx was also able to reach a settlement, regarding a class action lawsuit. The company has stated that the allegations do not carry any merit and the settlement is merely to avoid longstanding costly litigation. As per the agreement, the company is liable to pay $4,000,000, but the company’s insurance carriers will cover an estimated $3,500,000 of the cost.
During the conference call CYTR management also updated on the upcoming milestones. The company would present data from DK049 at the American Association for Cancer Research’s Annual Meeting, due next month. The company also stated that it would file for an NDA, during the later part of 2016.
CytRx Corporation (NASDAQ:CYTR) lost 4.66% of its share value during the March 14 trading session, to close at a share price of $2.25.
