CytRx Corporation (NASDAQ: CYTR), a biopharmaceutical research and development company, announced that it has completed its acquisition of Innovive Pharmaceuticals, Inc. The acquired Innovive portfolio includes four clinical-stage oncology drug candidates, including North American and European rights to develop tamibarotene, which is already approved in Japan for the treatment of relapsed Acute Promyelocytic Leukemia (APL)
CytRx purchased Innovive for 2.6 million shares of CytRx common stock, about $18.3 million of “future performance-based milestone earn-outs”, and the assumption of Innovive’s liabilities. Innovive shareholders approved the deal Sept. 19.
“In acquiring Innovive, CytRx’s objective was to create a balanced business model, with the potential for near-, medium-, and long-term revenue generation,” a company news release states.
Tamibarotene, now in the middle of FDA studies, is considered by the company to have near-term revenue potential. Likely medium-term revenue generating products include molecular chaperone amplifiers arimoclomol and iroxanadine, which could be used to combat ALS and stroke.
“Our vision for the future is to continue to invest in our molecular chaperone regulation technology platform,” said CytRx President and CEO Steven A. Kriegsman, “As a means for generating new compounds for drug development and partnerships to drive shareholder value in the long-term.”
The main body of CytRx’s products includes Tamibarotene, Iroxanadine, and three oncology drugs designed to combat the effects of leukemia and chemotherapy, now known as INNO-406 and INNO-206, INNO-305.
“We recognize that we cannot fully fund and develop every clinical compound in our portfolio to its fullest potential,” Kriegsman said. “Therefore, early in the fourth quarter, our management team and board of directors expect to complete an ongoing comprehensive strategic review of CytRx’s portfolio of assets to determine where we can maximize stockholder value while managing our financial profile, for example by potentially outlicensing certain assets to fund the development of others.”
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