Cytrx Corp. has a market cap of $122 million; its shares were traded at around $1.12 with and P/S ratio of 12.9. Cytrx Corp. had an annual average earning growth of 5.6% over the past 10 years.CYTR is in the portfolios of Jim Simons of Renaissance Technologies LLC.
Highlight of Business Operations:At March 31, 2010, we had cash and cash equivalents of approximately $10.7 million, marketable securities of $22.8 million and held approximately 5.1 million restricted shares of common stock of RXi with a market value of approximately $23.2 million based upon the closing price of the RXi common stock on that date. On July 27, 2009, we raised approximately $18.3 million, net of fees and expenses, in a registered direct offering of our securities. On September 23, 2009, we raised approximately $1.2 million, net of fees, from the sale of 500,000 RXi shares, and on March 26, 2010, we raised approximately $3.8 million from the sale of 675,000 RXi shares. Management believes that our current cash on hand, together with our marketable securities and proceeds from possible future sales of RXi common stock, will be sufficient to fund our operations for the foreseeable future. The estimate is based, in part, upon our currently projected expenditures for the remainder of 2010 and the first three months of 2011 of approximately $21.7 million, which includes approximately $4.6 million for our clinical programs for INNO-206, approximately $2.3 million for our clinical programs for bafetinib, approximately $4.8 million for our clinical program for tamibarotene, approximately $1.3 million for our activities for arimoclomol, approximately $2.1 million for general operation of our clinical programs, and approximately $6.7 million for other general and administrative expenses. These projected expenditures are also based upon numerous other assumptions and subject to many uncertainties, and actual expenditures may be significantly different from these projections.
We realized a net loss in the quarter ended March 31, 2010 of $0.6 million as compared to a $4.0 million net loss in the quarter ended March 31, 2009, or a difference of $3.4 million. We recognized no service revenues in the quarter ended March 31, 2010 as compared to $1.5 million in the comparative quarter because all of the related ALSCRT revenue was completely recognized in 2009 as a result of the amendment of the ALSCRT arrangement discussed previously. Our research and development expenditures were approximately $0.7 million lower in the current quarter as compared to the quarter ended March 31, 2009, due to the closure of the San Diego facility in June of 2009. In the quarter ended March 31, 2010, we recognized a gain of $3.8 million resulting from the sale of 675,000 RXi shares. We had no similar items in the 2009 comparative period.
In the three-month period ended March 31, 2010, we received $3.6 million of cash from investing activities, compared to $0.1 million used in the comparable 2009 period. In the 2010 period, we received proceeds from the redemption of 675,000 RXI shares for a total of $3.8 million. We utilized $0.2 million for capital expenditures in the three-month period ended March 31, 2010 as compared to $0.1 million in the comparative 2009 period. We do not expect any significant capital spending during the next 12 months.
We recognized no service revenue for the three-month period ended March 31, 2010, as compared to $1.5 million for the same period in 2009. The 2009 revenues relate to our $24.3 million sale to the ALSCRT of a one percent royalty interest in worldwide sales of arimoclomol in August 2006. Pursuant to an amendment signed between us and the beneficiary of the ALSCRT on August 6, 2009, we were released from all restrictions on the use of any proceeds previously paid to us in connection with the arrangement. As a result, we recognized $6.7 million as service revenue in the third quarter of 2009, which represented the remaining deferred revenue and previously un-recognized portion of the value received. All future licensing fees under our current licensing agreements are dependent upon successful development milestones being achieved by the licensor. During 2010, we do not anticipate receiving any significant licensing fees.
Research and development expenses incurred during the three-month period ended March 31, 2010 relate to our various development programs. In the three-month period ended March 31, 2010, the development costs of our program for INNO-206 were $0.8 million, the costs of our program for bafetinib were $0.5 million, and the costs of our program for tamibarotene were $0.2 million. The remainder primarily related to research and development support costs.
Employee stock option expense relates to options granted to recruit and retain directors, officers and other employees. We recorded approximately $0.1 million in the three-month period ended March 31, 2010, as compared to $0.3 million of employee stock option expense during the three-month period ended March 31, 2009. We also recorded non-employee stock option expense of $0.5 million as compared to $0.1 in the prior comparative period.
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