NEW YORK (TheStreet) -- Shares of CytRx (CYTR) rose 12% to $5.04 in late afternoon trading Friday after Oppenheimer initiated coverage on the biopharmaceutical research and development oncology company with an "outperform" rating and a $10 price target.

The company published encouraging Phase II interim results in January for its cancer-fighting drug aldoxorubicin. CytRx has submitted related data for a potential presentation in May at an industry conference in Chicago.

Oppenheimer predicts aldoxorubicin could debut in 2017 and eventually hit peak annual sales of at least $800 million. The firm said the drug is a "proof of concept" for CytRx's underlying technology that could lead to more products.

The firm said catalysts include more updates in the first half of 2015 on the Phase II trials for brain cancer and Kaposi sarcoma, a form of AIDS-related cancer.

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