CYTR: CytRx Corporation Message Board

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Biotech / Medical : CYTR: CytRx Corporation

CYTR 0.0920

0.0%

Oct 5 5:00 PM EST

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To: scaram(o)uche who wrote (13)	6/10/2008 4:42:26 AM
From: mopgcw	Read Replies (2) of 51

I looked at these guys briefly years ago, but never thought the pipeline or platform was exciting enough, so lost track. I just never really bought into the chaperone idea. but my science is non-existent, so that is not worth much. I took a quick re-look given your pointer here, but man you are right 13x book for RXi seems a bit steep, though this is a spin-off and you have that Nobel Premium. ;) looks like rxi did some inside transactions in 2007 at $5/share and got some banker to do a valuation letter at $5/share based on comps to sirna, alnylam and nastech. they then priced the spin-out at $8.84. rxii -- wild thing is, looks like they have $10mm cash available and will need more in about 9-12 months at the current burn. What a time and way to go public. note the usual suspects are absent -- orbimed has token amount (though they have a chunk of cytr). fidelity is the big investor here. Since it was a spinoff to Cytr shareholders it makes sense the value of the cytr would fall a corresponding amount. and at the same time UMMS filed to sell their shares. Note they are carrying RXI on their books at $0.56/share -- $3.5 million. at the current price of $7.98, cytr share of rxi is worth $50 million, or about 1/2 cytr's cap. so you get the rest of the company for $0.30/share. maybe chaperone technology is worth that flier? i have no real insight, but it seems quite a long shot. I am not sure how innovive changes this profile, i did not incorporate the impact of that merger and debt into this. why use this as a back-door to RXI? uness you really dig the IVPH compounds too?

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