CytRx 1Q net loss widens to $4.2 million, revenue increases

By Lisa Kerner

Erie, Pa., May 23 - CytRx Corp. reported a net loss of $4.2 million, or $0.07 per share, for the quarter ended March 31, an increase from the $3.5 million net loss, or $0.07 per share, for the same period in 2005.

Revenue, consisting entirely of service revenue, was $61,000. For the same period in 2005, revenue was $1,500, consisting entirely of license fees paid.

As of March 31, the company had cash, cash equivalents and short-term investments totaling $17.1 million, an increase from the previous quarter ended Dec. 31 of $8.3 million. CytRx attributes the increase to net proceeds of $12.4 million from the private sale of common stock and warrants.

The company reported working capital of $15.4 million as of March 31.

"We are making excellent progress with our ongoing clinical programs," president and chief executive officer Steven A. Kriegsman said in a company news release.

"We are currently completing the dosing regimen for final enrollees in our phase 2a clinical trial with orally administered arimoclomol for the treatment of amyotrophic lateral sclerosis, also known as ALS or Lou Gehrig's disease."

The company plans to report data from the study in the third quarter prior to moving into a phase 2b clinical trial, pending Food and Drug Administration approval.

"We are also taking steps to transfer all of our ribonucleic acid interference (RNAi) therapeutics assets into a newly formed subsidiary," Kriegsman added.

"We believe this approach may accelerate development and commercialization of drugs based on RNAi technology and increase the value of this technology for our shareholders."

CytRx is a Los Angeles-based biopharmaceutical engaged in the development of human therapeutics.

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