CytRx to form subsidiary to accelerate RNAi therapeutics programs

By Angela McDaniels

Seattle, Jan. 30 - CytRx Corp. said it will transfer all of its ribonucleic acid interference (RNAi) therapeutics assets into a newly formed subsidiary in order to accelerate the development and commercialization of drugs based on RNAi technology.

CytRx said it expects to retain significant ownership in the new company and that formation will likely be completed in the coming months, once financing has been obtained.

"A thorough analysis of our corporate structure and current valuation led us to conclude that repositioning our RNAi technology could substantially accelerate the movement of promising, high-value RNAi drug candidates into the clinic, thereby increasing the value of this technology for our shareholders," president and chief executive officer Steven A. Kriegsman said in a company news release.

"We believe that this structure will enable us to capitalize on recent progress in the field of RNAi by promoting research collaborations, other strategic alliances, and direct financing opportunities.

"Most significantly, this subsidiary will be a 'pure play' RNAi company and can now more easily be compared with other RNAi companies, which could materially increase CytRx's overall valuation."

CytRx's proprietary RNAi technology is being investigated for the treatment of inherited genetic disorders, such as type 2 diabetes, obesity and amyotrophic lateral sclerosis, and other diseases, such as human cytomegalovirus.

The Los Angeles-based biopharmaceutical company said it aims to move at least one RNAi-based drug through preclinical development this year.

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