CytRx Corporation has announced its intention to transfer all of its ribonucleic acid interference therapeutics assets into a newly-formed subsidiary to accelerate the development and commercialization of drugs based on RNAi technology.
CytRx expects to retain significant ownership in the new company. Formation is expected to be completed in the coming months, subject to obtaining financing for the subsidiary to fund this separate and distinct RNAi business.
"A thorough analysis of our corporate structure and current valuation led us to conclude that repositioning our RNAi technology could substantially accelerate the movement of promising, high-value RNAi drug candidates into the clinic, thereby increasing the value of this technology for our shareholders," said Steven A. Kriegsman, CytRx's President and CEO.
"We believe that this structure will enable us to capitalize on recent progress in the field of RNAi by promoting research collaborations, other strategic alliances, and direct financing opportunities."
"Most significantly, this subsidiary will be a "pure play" RNAi company and can now more easily be compared with other RNAi companies, which could materially increase CytRx's overall valuation."
"The proprietary RNAi technology we have exclusively licensed could have profound implications in the development of therapeutics and drug lead generation for many inherited genetic disorders, such as type 2 diabetes, obesity and amyotrophic lateral sclerosis (ALS or Lou Gehrig's disease), in addition to other diseases, such as human cytomegalovirus (CMV)," he added.
"We have extensive licensing agreements and sponsored research programs with the University of Massachusetts Medical School (UMMS), a pioneer in RNAi technology, Massachusetts General Hospital (MGH), the teaching hospital of Harvard Medical School and Imperial College London, one of the most important research centers in all of Europe."
"We are enthusiastic about prospects for several drug candidates currently under development."
Earlier this month, CytRx announced plans to move at least one RNAi-based drug through preclinical development this year and toward the filing of an investigational new drug (IND) application to begin human clinical testing.