Why CytRx (CYTR) Stock Is Surging Today

NEW YORK (TheStreet) -- Shares of CytRx Corp. (CYTR) are surging 6.30% to 4.05 today.

The biopharmaceutical R&D firm announced that positive preclinical results from an in vivo study of aldoxorubicin in an animal model of glioblastoma will be presented at the American Association for Cancer Research Annual Meeting being held April 5-9, 2014 in San Diego, CA.

CytRx announced data from the trial, which demonstrated that aldoxorubicin significantly increased survival almost 21/2 fold compared to doxorubicin treatment in an in vivo xenograft tumor model employing growth of human glioblastoma multiforme (GBM) tumors in mouse brains.

Aldoxorubicin, but not doxorubicin, also demonstrated preferential accumulation and prolonged retention in the tumor tissue.

These data, combined with aldoxorubicin's favorable safety profile, support the current evaluation of aldoxorubicin as a treatment for patients with GBM tumors.

The company specializes in oncology

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Separately, the company said an investor of CytRx filed a federal securities fraud class action complaint in the U.S. District Court for the Central District of California.

TheStreet Ratings team rates CYTRX CORP as a Sell with a ratings score of D+. TheStreet Ratings Team has this to say about their recommendation:

"We rate CYTRX CORP (CYTR) a SELL. This is driven by some concerns, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income, weak operating cash flow, poor profit margins and feeble growth in its earnings per share."

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