Aegis Capital Reiterates Buy On CytRx As Stock Soars 17%

Aegis Capital issued an update on CytRx Corporation CYTR Tuesday and reiterated its Buy rating and $12 price target.

Analyst Yi Chen noted that the company announced “positive interim results from the ongoing Phase 2 clinical trial with aldoxorubicin for the treatment of unresectable glioblastoma multiforme (GBM), a deadly form of brain cancer.”

“Preliminary results in 12 patients showed both prolonged stable disease and tumor shrinkage in several patients, including one patient who demonstrated no microscopic evidence of tumor when tissue was examined after resection, representing a complete response.”

Chen believed “that the albumin-binding chemotherapy may potentially create a new approach to treat brain tumors.”

The analyst note added that the “primary endpoint of this Phase 2 trial is to determine progression-free survival (PFS) at 6 months and overall survival (OS) in patients with recurrent glioblastoma multiforme. Secondary endpoints include the safety of aldoxorubicin as assessed by the frequency and severity of adverse events.”

Chen utilized “a discounted cash flow-based risk-adjusted Net Present Value (rNPV) analysis to value the company's shares. Our rNPV analysis yields a total firm value of ~$840 million, which corresponds to $12.00 per share factoring in ~$60 million in cash and ~75 million fully-diluted shares outstanding as of end-2015.”

CytRx Corporation recently traded at $3.35, up 17.54 percent.