CytRx Corporation (CYTR) spiked by over 50 percent on Thursday, leaping to a new 52-week high on news that its cancer treatment, aldoxorubicin, had shown significantly better results in limiting the growth of soft-tissue tumors than the current drug of choice, doxorubicin.
CYTR Could Ride Aldoxorubicin to Big Gains
CtyRx big day came on the heels of an even bigger gain on Wednesday, when news of the results were first reported. The stocked gapped up early and held its gains, ending the day up over 68 percent. Now, two-day gains exceed 155 percent.
Clinical Trial Shows “Unambiguous” Results
Driving those massive gains were results that showed aldoxorubicin crushing the current industry leader. Targeting soft-tissue sarcomas, aldoxorubicin showed significant improvement in the rate of survival without disease progression than chemotherapy alone. More importantly, though, it showed an 80-100 percent improvement over current best-of-breed drug doxorubicin.
“These results are extraordinary for a single agent treating these chemotherapy-resistant tumors,” said Dr. Sant Chawla of the Sarcoma Oncology Center in Santa Monica, CA, the study’s lead investigator. “Aldoxorubicin is the first and only single agent to surpass doxorubicin as a first-line treatment for soft tissue sarcomas.”
2013 a Wild Ride for CYTR
Prior to its rapid upswing, CytRx had already gained over 25 percent on the year. The company experienced a massive spike in September, gaining almost 45 percent from September 16 to September 27 on advanced news that drug trials for aldoxorubicin were performing well.
However, shares declined in value considerably after the company opted to take advantage of its newfound investor confidence by raising capital through a public offering. The company issued 10 million new shares, representing an increase in its float of over 30 percent and prompting a correlating 30 percent decline in its share price from Oct. 7 to Oct. 9.
Anyone who took the company up on the October 9 buying opportunity is clearly riding high at the moment. From that point to market close on Thursday, shares have risen almost 175 percent.
DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer