Shares of CytRx (CYTR) plunged to an all-time low in July after the company's only drug, aldoxorubicin, failed a large phase III study of patients with sarcoma, a group of cancers involving bones and connective tissue like muscle and fat.
A reputable company would have accepted the study failure, learned from the mistake and moved on. Not so for CytRx. On Tuesday, the company announced a plan to seek U.S. marketing approval of aldoxorubicin based more on hocus-pocus than credible science.
CytRx deleted half of the enrolled sarcoma patients and reanalyzed the failed study results. Poof! Aldoxorubicin works, or so the company now claims.
The truth, of course, is aldoxorubicin does not work. As announced in July, aldoxorubicin delayed the regrowth of tumors in sarcoma patients by a median of 4.17 months compared to a median of 4.04 months for sarcoma patients treated with the investigator's choice of other therapies.
Overall, aldoxorubicin reduced the risk of progression-free survival, or PFS, by just 9% compared to the control arm.
The CytRx phase III study, which enrolled 433 sarcoma patients, was a failure, which is why the company's stock price fell to 50 cents per share and remained there into Tuesday.
CytRx now wants investors to forget about the dismal aldoxorubicin study results of July and focus instead on a "new" analysis involving 246 of the 433 sarcoma patients. In this subgroup, aldoxorubicin reduced the risk of progression-free survival by 38% compared to the control arm -- a benefit CytRx claims is statistically significant.