EXHIBIT 99.1
[CYTRX LOGO]
FOR ADDITIONAL INFORMATION:
CytRx Corporation:
Carolyn French
Director of Communications
310/826-5648
cfrench@cytrx.com
Investor Relations Group:
Lisa Lindberg/John Nesbett
212/825-3210
CYTRX CORPORATION REPORTS FIRST QUARTER 2004 FINANCIAL RESULTS
LOS ANGELES, CA - MAY 17, 2004 - CytRx Corporation (Nasdaq: CYTRE) today
announced its financial results for the three-month period ended March 31, 2004.
For the quarter, the Company reported a net loss of $3,774,000, or $0.11 per
share, versus a net loss of $914,000, or $0.04 per share, for the comparable
quarter of 2003.
The primary items affecting comparability between the first quarter of 2004
versus the first quarter of 2003 were an increase in general and administrative
costs, reflecting primarily an increase in the scope of the company's
operations, and an increase in research and development costs. The majority of
the research and development costs were associated with the implementation of
the company's RNAi based research and development programs.
Cash and short-term investments totaled $10,005,000 and the Company had working
capital of $9,246,000 at March 31, 2004. This compares with cash and short-term
investments of $11,644,000 as of December 31, 2003 and working capital of
$10,761,000. More detailed financial information is available in the Company's
Form 10-
Q for the quarter ended March 31, 2004, which was filed with the Securities and
Exchange Commission on May 17, 2004.
Steven A. Kriegsman, CytRx's President & CEO, commented, "We are very pleased
with our progress during the fourth quarter. We have added several prominent
scientists to our advisory team which will strengthen our research efforts. We
continue to move forward in our drug discovery and pre-clinical efforts for ALS,
obesity and type 2 diabetes."
Highlights of the first quarter of 2004 include:
- The company, Advanced Bioscience Laboratories (ABL) and the University
of Massachusetts Medical School (UMMS) announced that ABL had filed an
Investigational New Drug Application (IND) with the Food and Drug
Administration (FDA) for a Phase I clinical trial for a new HIV
vaccine formulation. The IND was accepted by the FDA in March 2004,
with volunteers beginning to enroll in the trial in April 2004. The
company will have the right to acquire this vaccine product following
completion of the Phase I trial.
- Craig C. Mello, Ph.D., a Blais University Chair and Distinguished
Professor of Molecular Medicine at UMMS, and a co-discoverer of RNAi,
joined the Scientific Advisory Boards of the company and its
subsidiary.
- Tariq Rana, Ph.D., the founding Director of the Program in Chemical
Biology and Professor of Biochemistry & Molecular Pharmacology at UMMS
and a prominent biomedical advisor, has joined the Scientific Advisory
Boards of the company and its subsidiary.
- The company's subsidiary, CytRx Laboratories, located in Worcester,
Massachusetts, initiated its drug discovery program to identify,
screen and validate novel targets for the treatment of diabetes and
obesity and then discover new chemical entities (NCEs) to address
these targets. This subsidiary, with 14 full-time scientific and
support personnel, is combining integrated metabolic
diseases biology with its proprietary high throughput chemistry
platform to develop molecular based medicines to treat diabetes and
obesity.
- The company earned a $100,000 milestone payment due from Vical
Incorporated (Nasdaq: VICL - News) pursuant to Vical's license of
CytRx's TranzFect technology. CytRx's TranzFect technology is
incorporated in a plasmid DNA vaccine for cytomegalovirus (CMV), being
developed by Vical, for which Vical initiated a Phase I clinical
trial.
ABOUT CYTRX CORPORATION
CytRx Corporation is a biopharmaceutical research and development company, based
in Los Angeles, California, with a subsidiary in Worcester, Massachusetts. The
company is engaged in the development of products, primarily in the area of
ribonucleic acid interference (RNAi), for the human health care market, in a
variety of therapeutic categories. The company has a broad-based strategic
alliance with the University of Massachusetts Medical School to develop novel
compounds for obesity, type 2 diabetes, CMV and ALS using RNAi technology. CytRx
also licensed from UMMS the rights to a DNA-based HIV vaccine technology. The
company also has a research program with Massachusetts General Hospital, Harvard
University's teaching hospital, to use RNAi technology to develop a drug for the
prevention, treatment or cure of ALS. The company has licensed its TranzFect
delivery technology for DNA-based vaccines for certain diseases. For more
information, visit CytRx's website at www.cytrx.com.
CAUTIONARY NOTICE ABOUT FORWARD-LOOKING STATEMENTS
This press release may contain forward-looking statements within the meaning of
Section 21E of the Securities Exchange Act of 1934, as amended, that involve
risks and uncertainties that could cause actual events or results to differ
materially from the events or results described in the forward-looking
statements, including risks or uncertainties related to the early stage of
CytRx's diabetes, obesity, CMV and ALS research, the need for future clinical
testing of any RNAi-based products that may be developed by CytRx, the
significant time and expense that will be incurred in developing any of the
potential commercial applications for CytRx's RNAi or HIV vaccine technologies,
CytRx's need for additional capital to fund future research and development
activities, risks relating to the enforceability of any patents covering CytRx's
products and to the possible infringement of third party patents by those
products, the impact of third party reimbursement policies on the use of and
pricing for CytRx's products, and the potential impact of pending or future
legal proceedings. Additional uncertainties and risks are described in CytRx's
most recently filed SEC documents, such as its most recent annual report on Form
10-K, all quarterly reports on Form 10-Q and any current reports on Form 8-K
filed since the date of the last Form 10-K. All forward-looking statements are
based upon information available to CytRx on the date the statements are first
published. CytRx undertakes no obligation to publicly update or revise any
forward-looking statements, whether as a result of new information, future
events or otherwise.
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CYTRX CORPORATION
CONDENSED CONSOLIDATED FINANCIAL SUMMARY
(UNAUDITED)
STATEMENTS OF OPERATIONS
THREE MONTHS ENDED
MARCH 31
2004 2003
------------ ------------
INCOME--
License fees $ 100,000 $ --
------------ ------------
EXPENSES:
Research and development (includes non-cash stock 1,431,948 2,500
compensation of $274,000 in 2004)
Depreciation and amortization 16,330 60
Common stock, stock options and warrants
issued for selling, general and administrative 1,283,832 148,500
Selling, general and administrative 1,199,795 525,139
------------ ------------
3,931,905 676,199
------------ ------------
Loss before other income (3,831,905) (676,199)
Other income--
Interest income 23,306 15,766
------------ ------------
(3,808,599) (660,433)
Minority interest in losses of subsidiary 34,928 --
Equity in losses minority-owned entity -- (253,564)
------------ ------------
Net loss $ (3,773,671) $ (913,997)
============ ============
Basic and diluted loss per common share (0.11) (0.04)
============ ============
Basic and diluted weighted average shares outstanding 34,215,007 21,510,111
============ ============
CYTRX CORPORATION
CONDENSED CONSOLIDATED FINANCIAL SUMMARY
(UNAUDITED)
BALANCE SHEET HIGHLIGHTS
(IN THOUSANDS)
MARCH 31, 2004 DECEMBER 31, 2003
-------------- -----------------
Cash and short-term investments $10,005 $11,644
Total assets $11,911 $12,324
Total liabilities $ 2,024 $ 1,801
Working capital $ 9,246 $10,761
Common shares outstanding 34,862 33,758