CytRx Corporation Completes Acquisition of Innovive Pharmaceuticals, Inc.
Near-Term Commercialization Opportunities from Innovive’s Oncology Portfolio Complement CytRx Molecular Chaperone Pipeline and Technology Platform
CytRx Corporation announced the completion of its acquisition of Innovive Pharmaceuticals, Inc. CytRx purchased Innovive for total consideration of approximately 2.6 million shares of CytRx common stock, approximately $18.3 million of future performance-based milestone earn-outs, and the assumption of Innovive’s liabilities. The acquired Innovive portfolio includes four clinical-stage oncology drug candidates, including North American and European rights to develop tamibarotene, which is already approved for the treatment of relapsed Acute Promyelocytic leukemia (APL) in Japan. Innovive shareholders approved the acquisition at a special meeting held on Friday, September 19, 2008. The CytRx drug development pipeline now includes six drug candidates in diverse stages of clinical development.
In acquiring Innovive, CytRx’s objective was to create a balanced business model, with the potential for near-, medium-, and long-term revenue generation. CytRx enhanced its near-term revenue potential through the acquisition of tamibarotene, its most advanced drug candidate that is currently being evaluated in a registration study in the U.S., Canada, and Europe under a Special Protocol Assessment by the FDA for third-line treatment of APL. This near-term revenue prospect is complemented by CytRx’s prospective medium-term revenue-generating molecular chaperone amplifiers, arimoclomol and iroxanadine, which the Company is developing for large potential markets including ALS, stroke, and vascular diseases such as diabetic foot ulcers, and three other oncology drug candidates acquired from Innovive. CytRx’s long-term revenue generation strategy is based on its proprietary Master Chaperone Regulator Assay (MaCRA) drug discovery platform which has enabled the discovery of several drug pipeline candidates.
“In the short-term, we expect tamibarotene and our pipeline of drugs in development to drive value creation through the generation of clinical data and the potential to form strategic alliances for assets determined to be non-core to our business,” commented Steven A. Kriegsman, CytRx President and CEO. “Our vision for the future is to continue to invest in our molecular chaperone regulation technology platform as a means for generating new compounds for drug development and partnerships to drive shareholder value in the long-term.”
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