Exhibit 99.2
[LOGO] CytRx(R)
CORPORATION
For Additional Information:
CytRx Corporation
Steven A. Kriegsman Carolyn French
Chief Executive Officer Director of Communications
310/826-5648 310/826-5648
STEVENK@CYTRX.COM CFRENCH@CYTRX.COM
CYTRX TEAMS WITH WORLD RENOWNED SCIENTISTS TO CREATE
OBESITY AND TYPE II DIABETES PROGRAM
--COMPANY TO FOCUS ON SMALL MOLECULE DRUGS USING RNAI TECHNOLOGY--
LOS ANGELES, CA - SEPTEMBER 17, 2003 - CytRx Corporation (NASDAQ:CYTR) today
reached an agreement to form Araios, Inc., a CytRx subsidiary that will develop
orally active small molecule based drugs to prevent, treat and cure obesity and
type II diabetes. Michael P. Czech, Ph.D., Professor and Chair of Molecular
Medicine, and Professor of Biochemistry and Molecular Pharmacology at the
University of Massachusetts Medical School (UMMS), will team with prominent
scientists affiliated with leading medical institutions, including Harvard
Medical School, to form the company.
The new company will be initially funded by CytRx with $7 million. This funding
was provided out of the proceeds of CytRx's private placement that was completed
yesterday.
CytRx's new subsidiary is an outgrowth of a landmark alliance established in
April 2003 with UMMS to use RNA interference (RNAi) technology for the
development of novel products for the prevention, treatment and cure of obesity
and type II diabetes. The new unit initially will focus on using a genomic and
proteomic based drug discovery approach that leverages RNAi to swiftly screen
and identify key drug targets and pathways in obesity and type II diabetes. It
will then develop orally active medicines against these targets. The formation
of the new subsidiary represents a significant evolution of CytRx's business
plan, with CytRx becoming a fully staffed drug discovery and development company
in the obesity and type II diabetes fields.
"CytRx is UMMS's first commercial partner in developing RNAi technology to treat
major illnesses. As a result of this unique transaction with our prominent
scientists, they are now the world's leading company in the application of RNAi
technology to develop medicines for the treatment of obesity and type II
diabetes," said John L. Sullivan, MD, Director of the Office of Research at the
University of Massachusetts Medical School. "Based on our relationship with
CytRx, I would expect them to be the first RNAi company to have a commercial
product in the market for these diseases."
Dr. Czech, a world renowned authority in the field of obesity and type II
diabetes, will serve as chairman of the new company's Scientific Advisory Board
and as chief scientific advisor. The Scientific Advisory Board is comprised of
distinguished physicians and researchers including:
o RONALD KAHN, M.D., President and Director, Joslin Diabetes
Center; Section Head Cellular and Molecular Physiology,
Professor of Medicine, Harvard Medical School.
o LUCIANO ROSSETI, M.D., Director, Albert Einstein College of
Medicine Diabetes Research and Training Center.
Dr. Czech has pioneered work using RNAi to selectively inhibit gene expression
in metabolic tissues and has developed model systems for studying insulin
actions in tissues relevant to diabetes and obesity. Obesity and type II
diabetes are associated conditions, with 85% of type II diabetics being
overweight. These two metabolic conditions affect more than 85 million Americans
and 180 million people worldwide, resulting in more than $100 billion in annual
health care expenditures. Current approved drugs for these diseases have
unpleasant or serious side effects causing potential health concerns and are
only partially effective.
"The application of RNAi technology to drug discovery in metabolic disease is a
breakthrough advance," said Dr. Czech. "Araios will take full advantage of this
powerful approach, which should greatly accelerate progress toward developing
new therapies for obesity and diabetes."
"We are pleased to have attracted the finest minds in the medical world, who are
determined to find a cure for obesity and type II diabetes," said Steven A.
Kriegsman, CytRx's chief executive officer. "With such renowned scientists and
an agile and focused program, CytRx is committed to curing these horrendous
diseases. We plan to use all of our pharmaceutical and biotech relationships to
develop unique multiple partnership opportunities with the world's largest and
finest pharmaceutical companies. We believe our team can rapidly build a
pipeline of novel drug candidates for these indications."
Louis J. Ignarro, Ph.D, chairman of the CytRx Scientific Advisory Board and
Nobel Laureate in medicine, said, "It is unusual to have amassed such an
accomplished group of scientists within an organization to concentrate their
attention on one area. Obesity and type II diabetes are debilitating maladies
for millions of individuals throughout the world. While true scientific
breakthroughs are both challenging and rare, this opportunity holds great
promise for success."
In addition to Dr. Czech, Araios has attracted several industry veterans to join
its team, including Mark A. Tepper, Ph.D., who will serve as president. Dr.
Tepper has over 25 years of experience in biomedical research. For the past 14
years, he has led small molecule and protein therapeutic discovery and early
development projects in pharmaceutical and biotechnology companies.
Dr. Tepper most recently was chief executive officer of Arradial, a venture
backed microfluids based drug discovery company. He previously held positions as
vice president, research and operations at the Serono Pharmaceutical Research
Institute, and at the Bristol Myers Squibb Pharmaceutical Research Institute.
"The founders and senior executives at our new subsidiary have more than 50
years of combined research and business experience working in the field of
diabetes and obesity," Kriegsman said. "We are excited about the prospects of
becoming the premier company in the discovery and development of new medicines
to treat this worldwide epidemic."
ABOUT CYTRX CORPORATION
CytRx Corporation is a biopharmaceutical company engaged in the development and
commercialization of large-market opportunity products in a variety of
therapeutic categories. The company recently formed a broad-based strategic
alliance with the University of Massachusetts Medical School to develop novel
compounds for obesity, type II diabetes and ALS, including using a promising new
technology known as RNA interference (RNAi). CytRx recently licensed from UMMS
the exclusive worldwide rights to a DNA-based HIV vaccine technology. CytRx is
seeking strategic partners to complete the development of FLOCOR, a product for
the treatment of sickle cell disease and which may have applications in cancer
and disorders such as stroke and heart attack. The company has licensed its
TranzFect delivery technology for DNA-based vaccines for certain diseases. A
CytRx subsidiary also holds interests in two development stage genomics-based
healthcare companies. For more information, visit CytRx's website at
www.cytrx.com.
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 without limitation risks or uncertainties related to the
need to satisfy certain closing conditions for the formation of the new
subsidiary, the potential need to fund future operations of the new subsidiary
with additional capital, the reliance of the new subsidiary on the efforts of
Dr. Czech, the need to recruit and retain scientific personnel for the new
subsidiary, the risks and uncertainties in identifying and validating drug
targets for the new subsidiary using new RNAi technologies, the time and
substantial cost to develop new drugs in the obesity and type II diabetes fields
and the risks and uncertainties associated with the development of potential
commercial applications for CytRx's RNAi technology in other fields. 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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