CytRx (CYTR) Stock: Here’s Why It’s Climbing

CytRx CYTR Stock News

CytRx Corporation (NASDAQ: CYTR) is having a great day in the market today. However, the company hasn’t released any news that would suggest that such gains would be coming. We can say that there is a very good reason for the gains, and that chances are they are not over. Today, we’ll talk about:

  • Why CYTR is headed for the top;
  • what we’re seeing from the stock; and
  • what we’ll be watching for ahead.

Why CYTR Is Climbing!

As mentioned above, CytRx is having a strong day in the market today, but no news has been released. So, what’s the deal? Well, it all seems to have to do with arimoclomol, an asset the company sold the rights to back in 2011. Under the terms of the sale, CYTR received $150,000 up front, but the big story is milestones. The company also has the right to receive up to $120 million in milestone payments as well as royalties. This is where the big kicker comes in.

Most recently, the company received a milestone payment of $250,000 from Orphazyme A/S, the company that purchased the arimoclomol asset back in September. This milestone payment was the result of the dosing of the first patient in a Phase 2 trial of the treatment as an option for amyotrophic lateral sclerosis. Now, there may be more of that $120 million up for grabs.

On December 10, 2018, Orphazyme issued a press release announcing that it expects to release the full data set for the Phase II/III trial in NPC in the first quarter of 2019. So far, data surrounding the treatment has been overwhelmingly positive, and should this data continue to be positive, we can expect to see more milestone payments being made to CYTR. Moreover, it’s important to note that the asset is now in late-stage studies and has the potential to hit the market in the relatively near term. Should this be the case, further milestone payments would be unlocked and royalties on sales could drive even more revenue. All in all, seed planted with the sale of an asset more than 7 years ago now has the potential to generate some serious volumes of fruit!

What We’re Seeing From The StockĀ 

One of the first lessons that we learn when we start to work in the market is that the news leads to moves. While CytRx hasn’t released any news of their own, the anticipation of clinical data from Orphazyme is leading to some serious excitement. So, it’s not surprising to see that the stock is headed up in the market today. As is just about always the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (12:28), CYTR is trading at $0.50 per share after a gain of $0.056 per share or 12.52% thus far today.

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What We’ll Be Watching For Ahead

Moving forward, the iWatch Markets team will continue to keep a close eye on CYTR. In particular, we’re interested in following the story surrounding the company’s benefit from the work Orphazyme is doing with regard to an asset the company created. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!

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