Opinion on  CytRx Corp. (CYTR)     Sector: Healthcare  >  Industry: Biotechnology & Drugs
Molecular Chaperone Technology

CytRx currently has two orally administered, clinical-stage molecular chaperone drug candidates and recently discovered a series of additional compounds that may provide a pipeline for additional drug candidates. The Company's drug candidates are believed to function by regulating a normal cellular protein repair pathway through the activation or inhibition of "molecular chaperones." Because damaged proteins are thought to play a role in many diseases, activation of molecular chaperones that help to reduce the accumulation of misfolded proteins may have therapeutic efficacy in a broad range of disease states. Similarly, CytRx believes that the inhibition of molecular chaperones that normally help protect cancer cells from toxic misfolded proteins may result in the selective destruction of cancer cells.

Cash and cash equivalents and short term investments totaled $35.5 million as of September 30, 2009, including proceeds of $18.3 million, net of fees and expenses, from a registered direct offering completed in July 2009, and $1.2 million, net of fees, from the sale of 500,000 shares of common stock of RXi Pharmaceuticals Inc. (Nasdaq: RXII) in September 2009. CytRx's ownership stake in RXi as of September 30, 2009 had a market value of approximately $14.1 million.