CytRx: third-quarter net loss slightly down from prior-year period

By Lisa Kerner

Charlotte, N.C., Nov. 13 - CytRx Corp. reported a net loss of $3.0 million, or $0.04 per share, for the third quarter of 2006 compared with a net loss of $3.5 million, or $0.06 per share, for the third quarter of 2005.

Revenue for the quarter was up considerably at $776,000 and consisted primarily of service revenue, compared with revenue from license fees of $10,000 reported for the prior-year period.

Research and development expenses were down for the three-month period at $1.1 million, from $2.0 million for the third quarter of 2005. CytRx attributed the decrease primarily to completion of the phase 2a clinical trial for arimoclomol.

The company's general and administrative expenses rose to $2.3 million for the third quarter of 2006, compared with $1.5 million a year earlier.

As of Sept. 30, the company had cash, cash equivalents and short-term investments totaling $33.7 million, compared with $8.3 million as of Dec. 31, 2005. CytRx said the increase reflects net proceeds of approximately $12.4 million from the private sale of common stock and warrants in March 2006 and $24.5 million from the privately funded ALS Charitable Remainder Trust.

The company reported working capital of $31.5 million at the end of the quarter, compared with $6.3 million as of Dec. 31, 2005.

For the nine months ended Sept. 30, CytRx reported a net loss of $12.6 million, or $0.19 per share, and revenue of $837,000.

"We are making headway toward our plan to initiate a phase 2b clinical trial with arimoclomol in ALS [Amyotrophic Lateral Sclerosis] in the third quarter of 2007, subject to U.S. Food and Drug Administration approval," president and chief executive officer Steven A. Kriegsman said in a company news release.

"Given the life-threatening nature of this disease and the lack of viable treatment options, we believe that positive safety and efficacy results from the phase 2b trial could be sufficient for arimoclomol product registration in this indication."

CytRx is a biopharmaceutical research and development company located in Los Angeles.

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