New CEO outlines strategic plans for Flocor maker.(Brief Article)

2002 OCT 9 - (NewsRx.com & NewsRx.net) -- CytRx Corp.'s (CYTR) new CEO, Steven A. Kriegsman, said he plans to shift the company's focus to licensing and strategic alliances for the development and marketing of its products.

The company's new plans include finding a partner before further developing its experimental drug Flocor.

"Revenue and profits are my focus and CytRx's goal," CEO Steven Kriegsman told Dow Jones Newswires recently.

Although CytRx has invested a substantial amount of money on developing Flocor, it needs to partner with a large biotechnology or pharmaceutical company to continue clinical development of this compound. The shift in CytRx's strategic plans is aimed at enabling the company to continue the development of Flocor while limiting the company's additional financial commitment to the product.

Flocor is initially being developed for sickle-cell anemia, but CytRx has previously indicated that it wants to test it for other disorders as well. CytRx reported in June that a government grant sought by CytRx to support the phase III trial of Flocor at Johns Hopkins University Medical School was not approved. CytRx believes that other financial options might be available to fund the substantial anticipated costs of the phase III trial. The company's current strategy is to shift the development costs of Flocor, as well as any other products of the company, to larger pharmaceutical companies through strategic alliances, licenses, or other collaborative arrangements.

CytRx conducted several clinical trials of Flocor through 1999, with the most significant results in pediatric sickle-cell patients. After reviewing the trial data, the FDA indicated CytRx would need to do ...