CytRx Technical Breakout on Pending News (NASDAQ:CYTR)

By Michael Vlaicu on 11/23/2009 – 10:58 am UTCLeave a Comment

Tamibarotene has also showed statistically significant anti-tumor activity in animal trial for multiple myeloma, an incurable malignant tumor of the plasma cells of bone marrow. CytRx retains an option to expand its licenses for the use of tamibarotene in other fields in oncology, including multiple myeloma, myelodysplastic syndrome and certain solid tumors in the U.S., and multiple myeloma, myelodysplastic syndromes and solid tumors other than hepatocellular carcinoma in Europe.

INNO-206 (formerly DOXO-EMCH) is a prodrug of the commonly prescribed chemotherapeutic doxorubicin and was designed to reduce adverse events by controlling release and preferentially targeting the tumor. In a Phase 1 study, doses were administered at up to six times the standard dosing of doxorubicin without an increase in observed side effects over those historically seen with doxorubicin. Objective clinical responses were seen in patients with sarcoma, breast and lung cancers. In addition, the Company has announced that INNO-206 has demonstrated statistically significant results in animal models of breast cancer, pancreatic cancer and ovarian cancer. The Company is evaluating options for a Phase 2 protocol with the FDA.

INNO-406 (formerly known as NS-187) is a potent, orally available, rationally designed, dual Bcr-Abl and Lyn-kinase inhibitor that is currently being planned as a third line treatment for patients with Chronic Myeloid Leukemia (CML) or certain forms of Acute Myeloid Leukemia (AML) that are refractory or intolerant of other approved treatments. In November 2008, CytRx announced that bafetinib demonstrated clinical responses in patients with CML in an international Phase I dose-ranging clinical trial conducted in patients with CML and other leukemias that have a certain mutation called the Philadelphia Chromosome (Ph+) and are intolerant of or resistant to Gleevec and, in some cases, second-line tyrosine kinase inhibitors such as dasatiniband nilotinib). INNO-406 has been granted Orphan Drug Status for the treatment of Philadelphia chromosome-positive (Ph+) CML by the FDA.

CytRx Oncology Expertise

Collectively, CytRx’s management and its Board of Directors have brought numerous oncology drugs to market. The senior managers and directors of CytRx who hold significant oncology experience include: Joseph Rubinfeld, Ph.D., a director since July 2002 and world-renowned expert in the field of oncology, who was one of the four initial founders of Amgen, Inc.; Max Link, Ph.D., Chairman of the Company’s Board of Directors since 1996, who served for a number of years as Chairman and CEO of Sandoz Pharma and also serves as a director of Alexion Pharmaceuticals, Inc., Celsion Corporation and Discovery Laboratories, Inc.; Daniel Levitt, M.D., Ph.D., Chief Medical Officer, who served as president of Protein Design Labs, as global leader of oncology drug development at Sandoz Pharmaceuticals and as director of clinical oncology at Hoffmann-LaRoche; and Jack R. Barber, Ph.D., Chief Scientific Officer, who has significant R&D experience in oncology at Immusol and Viagene, where Dr. Barber most recently served as Head of Oncology.

Technical Analysis

Taking a look at the 6 month chart, we notice the 0.85 and 1.2 price per share points to hold significant independent values. Throughout this time, the stock has spent time consolidating in between these levels, and thus creating some very significant support and resistance levels. What most new investors should be interested in is the 0.85 support level, which has held two times before, thus creating a level of confidence and safety, should the stock begin to see a downtrend in the short-term. However, most new investors are looking for a technical breakout, and thus stock seems to have all the makings for it. Strong volume, similar to that of mid-end June and early September, both of which saw the stock jump to the pivotal 1.2 price per share level. The MACD and EMA have been experiencing a golden cross since the beginning of November, and the RSI is shooting upwards towards the critical 70 marker. Should the RSI break this point, a re-test of 1.72 (52 week high) could be experienced. The important variable that needs to remain constant is the heavy volume, or in particular, buying pressure.