A temporary price bump sparked by some positive news updates earlier this month put CYTR right back to near the eighty cent range, but not for long as shares closed Monday under seventy cents.

While the news-fueled spike didn't sustain for too long, the quick spike on news is a good indicator that there is, in fact, some attention being paid to the progress of CytRx. That said, it could still be argued that - given the robust pipeline of products and the advancement of its Phase II pipeline - this one is still flying low, below the radars of all but the most speculative of investors.

Many investors these days would rather look for more immediate - and more sure-thing - price movers instead of playing the "wait and see" game with companies whose products are in Phase II or earlier, like CYTR.

There's nothing wrong that type style - each investor needs to develop his or own investing strategy and stick with it - but that's not to say that there's no payback in taking advantage of 'Phase II prices' and playing the 'buy & hold' game.

KERX is the example I use the most in this conversation.

Shares of Keryx Pharmaceuticals traded for right around a buck when its two chief products were early on in Phase II, but once those trials turned out to be a success and Phase III trials were initiated, the share price quickly reached five dollars-plus.

While it might be argued that KERX is more of a solid investment after positive Phase IIs, and then will be moreso after positive Phase IIIs - assuming they are positive - there's also the argument to make that buying into Phase II stories allows for more significant percentage gains over the long runs, since you generally don't get 'speculative prices' when a company is no longer speculative.

That's a strategy for a patient investor who has time to wait.
Throughout the past couple of months, CytRx has released enough positive updates that may justify the accumulation game for the more patient investors who are willing to wait for the story to develop.

A company PR released earlier this month announced that INNO-206, an experimental doxorubicin conjugate that targets cancerous tumors, is safely delivering doxorubicin at doses over four times higher than the standard in the ongoing Phase I soft tissue sarcomas trial. As the trial moves forward, CytRx will continue escalating dosage until finding the 'maximum threshold' of tolerance. It is expected that increasing the amount of doxorubicin in the bloodstream will also increase the efficacy of INNO-206's cancer-fighting abilities. Although full data are still being analyzed, a quick turnaround into a Phase IIb trial is expected, according to previously-released statements from the company.

That news followed another dose of good news when it became public that the same product candidate had received an Orphan Drug Designation (ODD) from the FDA. The ODD grants CytRx seven years of market exclusivity for the soft tissue sarcomas indication, should INNO-206 make it to market. CytRx retains global rights to INNO-206.

CytRx has seven clinical trials either under way or in the works for multiple product candidates, with bafetinib and tamibarotene already being tested in Phase II trials.

The ENABLE trial, for example, is measuring bafetinib for effectiveness in high-risk B-cell chronic lymphocytic leukemia (B-CLL), while another Phase II - titled PROACT - tests bafetinib in advanced prostate cancer. A pharmacokinetic clinical trial is also being conducted for brain cancer.

Another product, Tamibarotene, is being tested in a double-blind placebo-controlled Phase 2 trial in patients with non-small-cell lung cancer as well as in a registration clinical trial as a treatment for acute promyelocytic leukemia (APL).

While nothing ground-breaking enough to convince investors of assured success has hit the wires - which it never does in companies that are still developing thier pipelines - there's been enough put out there to grab investors' attention.

The current market cap of right around 75 million is below that of some competitors with less in the pipeline than what CYTR might end up having to offer. And there's enough in this 'Phase II' pipeline to keep it interesting.

Watch for additional updates; if Phase II results start becoming Phase III trial initiations, it might draw some new interest to CYTR.

Disclosure: No position.

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