CytRx Reports 2013 First Quarter Financial Results

  CytRx Reports 2013 First Quarter Financial Results

Business Wire

LOS ANGELES -- May 9, 2013

CytRx Corporation (NASDAQ: CYTR), a biopharmaceutical research and development
company specializing in oncology, today reported financial results for the
three months ended March 31, 2013.

“We are focusing on advancing the clinical development of aldoxorubicin for
the treatment of patients with soft tissue sarcoma as well as for various
other indications, and expanding our oncology pipeline by combining our novel
linker platform technology with additional chemotherapeutic agents,” said
Steven A. Kriegsman, CytRx President and CEO. “Our linker technology has
proven affinity to attach to multiple chemotherapeutic agents, opening the
potential for its use in treating a majority of solid tumors and cancers of
the blood. We can concentrate additional financial resources toward this focus
following our previously announced decision to terminate development of
tamibarotene.”

First Quarter 2013 Financial Results

Net loss for the three months ended March 31, 2013 was $6.9 million, or $0.23
per share, compared with a net loss of $10.1 million, or $0.49 per share, for
the three months ended March 31, 2012. In the first quarters of 2013 and 2012,
the Company recognized non-cash losses of $2.1 million and $3.9 million,
respectively, on the valuation of warrant derivative liabilities related to
warrants issued in August 2011 and July 2009.  The Company did not recognize
revenues for the first quarters of 2013 and 2012.

Research and development (R&D) expenses were $3.2 million for the first
quarter of 2013, and included development expenses of $1.6 million for
aldoxorubicin and $0.9 million for tamibarotene. R&D expenses were $4.4
million for the first quarter of 2012.

General and administrative (G&A) expenses were $1.8 million for the first
quarter of 2013, compared with $1.9 million for the first quarter of 2012. G&A
expenses included non-cash stock-compensation expense of $0.2 million for each
of the respective quarters ended March 31, 2013 and 2012.

CytRx reported cash, cash equivalents and short-term investments of $32.4
million as of March 31, 2013.

AboutCytRx Corporation

CytRx Corporation is a biopharmaceutical research and development company
specializing in oncology. The CytRx oncology pipeline is focused on the
clinical development of its tumor-targeting doxorubicin conjugate
aldoxorubicin (formerly known as INNO-206). CytRx has initiated an
international Phase 2b clinical trial as a treatment for soft tissue sarcomas,
has completed its Phase 1b/2 clinical trial primarily in the same indication,
and has initiated a Phase 1b pharmacokinetics clinical trial in patients with
metastatic solid tumors and a Phase 1b study of aldoxorubicin in combination
with doxorubicin in patients with advanced solid tumors. The Company is
initiating a Phase 3 pivotal trial under a special protocol assessment (SPA)
with aldoxorubicin as a therapy for patients with soft tissue sarcomas whose
tumors have progressed following treatment with chemotherapy. CytRx is
expanding its pipeline of oncology candidates based on its proprietary linker
platform technology that can be utilized with multiple chemotherapeutic agents
and could allow for greater concentration of drug at tumor sites. The Company
also has rights to two additional drug candidates, tamibarotene and bafetinib.
The Company completed its evaluation of bafetinib in the ENABLE Phase 2
clinical trial in high-risk B-cell chronic lymphocytic leukemia (B-CLL), and
plans to seek a partner for further development of bafetinib, and is
evaluating further development of tamibarotene. For more information about
CytRx Corporation, visit www.cytrx.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of
Section 21E of the Securities Exchange Act of 1934, as amended. Such
statements 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 relating to the outcome, timing
and results of CytRx's clinical trials, the risk that any future human testing
of aldoxorubicin, the Company’s linker technology and other drug candidates
might not produce results similar to those seen in past human or animal
testing, risks related to CytRx's ability to manufacture its drug candidates
in a timely fashion, cost-effectively or in commercial quantities in
compliance with stringent regulatory requirements, risks related to CytRx's
need for additional capital or strategic partnerships to fund its ongoing
working capital needs and development efforts, including the Phase 3 clinical
development of aldoxorubicin, and the risks and uncertainties described in the
most recent annual and quarterly reports filed by CytRx with the Securities
and Exchange Commission and current reports filed since the date of CytRx's
most recent annual report. 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.

                                                        
CYTRX CORPORATION
CONDENSED BALANCE SHEETS
(Unaudited)
                                                             
                                        March 31, 2013       December 31, 2012
ASSETS
Current assets:
Cash and cash equivalents               $ 11,429,671         $  14,344,088
Short-term investments                    21,000,000            24,000,000
Receivables                               10,294                109,802
Interest receivable                       40,168                26,517
Investment in Mast Therapeutics, at       62,945                —
market
Prepaid expenses and other current       1,462,098           1,212,041    
assets
Total current assets                      34,005,176            39,692,448
Equipment and furnishings, net            226,975               253,277
Goodwill                                  183,780               183,780
Other assets                             102,271             102,271      
Total assets                            $ 34,518,202        $  40,231,776   
LIABILITIES AND STOCKHOLDERS’
EQUITY
                                                             
Current liabilities:
Accounts payable                        $ 1,851,300          $  3,060,516
Accrued expenses and other current        2,989,712             3,033,189
liabilities
Warrant liabilities                      6,067,450           3,972,230    
Total current liabilities                10,908,462          10,065,935   
                                                             
Commitments and contingencies
                                                             
Stockholders’ equity
Preferred Stock, $.01 par value,
5,000,000 shares authorized,
including 25,000 shares of Series A       —                     —
Junior Participating Preferred
Stock; no shares issued and
outstanding
Common stock, $.001 par value,
250,000,000 shares authorized;
30,607,916 shares issued and              30,608                30,608
outstanding at March 31, 2013 and
December 31, 2012
Additional paid-in capital                261,626,646           261,318,638
Treasury stock, at cost (90,546           (2,279,238   )        (2,279,238   )
shares)
Accumulated deficit                      (235,768,276 )       (228,904,167 )
Total stockholders’ equity               23,609,740          30,165,841   
Total liabilities and stockholders’     $ 34,518,202        $  40,231,776   
equity

                                         
CYTRX CORPORATION
CONDENSED STATEMENTS OF OPERATIONS
(Unaudited)
                                            
                                            Three Months Ended
                                            March 31,
                                              2013             2012
Revenue:
License revenue                             $ —               $ —           
Expenses:
Research and development                      3,188,759          4,401,515
General and administrative                   1,817,325        1,914,715   
                                             5,006,084        6,316,230   
                                                               
Loss before other income (loss)               (5,006,084 )       (6,316,230  )
Other income (loss):
Interest income                               40,258             35,458
Other income, net                             196,937            34,059
Loss on warrant derivative liability         (2,095,220 )      (3,888,166  )
                                                               
Net loss                                    $ (6,864,109 )     $ (10,134,879 )
                                                               
Basic and diluted net loss per share        $ (0.23      )     $ (0.49       )
                                                               
Basic and diluted weighted average           30,417,370       21,203,867  
shares outstanding

Contact:

Investor Relations
Legend Securities, Inc.
Thomas Wagner
800-385-5790 x152
718-233-2600 x152
twagner@legendsecuritiesinc.com
or
Company
CytRx Corporation
David Haen
Vice President, Business Development
310-826-5648 x304
dhaen@cytrx.com
 
Press spacebar to pause and continue. Press esc to stop.