UPDATE: Aegis Capital Lowers PT on CytRx on Continued Aldoxorubicin Trial Results

In a report published Wednesday, Aegis Capital analyst Raghuram Selvaraju reiterated a Buy rating on CytRx CYTR, but lowered the price target from $8.00 to $7.00.

In the report, Aegis Capital noted, “We are providing an update on the clinical programs at CytRx Corp. Earlier this month, the firm announced presentation of results from a Phase 1b trial of its lead compound aldoxorubicin, an enhanced version of the widely-used chemotherapeutic agent doxorubicin. This data showed that aldoxorubicin can be safely combined with doxorubicin without increasing the likelihood of cardiac side effects. In April 2013, aldoxorubicin was also the subject of a Special Protocol Assessment (SPA) for a proposed Phase 3 trial aimed at assessing the drug in soft tissue sarcoma (STS). This trial, slated to start enrolling patients later this year, could pave the way for a regulatory filing on aldoxorubicin for STS within the next 18-24 months. We note, however, that CytRx has had to discontinue development of tamibarotene in lung cancer following a Data Safety Monitoring Board recommendation. Accordingly, we reiterate our Buy rating and lower our price target from $8.00 to $7.00 per share.”

CytRx closed on Tuesday at $2.14.