Would CYTR consider selling VXCL ? Review of CytRx's SEC filings show that recent events seem to indicate that they are concentrating their efforts and their cash on FLOCOR, their flagship drug. They have been successful at selling off assets determined to be non-core. This could be beneficial because it could put somebody behind the research and licensing who could concentrate full efforts and realize the potential of these products.
With their 87% interest and former Zynaxis holders with over 10%, it would seem that they would have a vested interest and an obligation (to ex-Zynaxis holders) to maximize return... (preceding IMO--what follows is from CYRT's 8-k, filed 5-1-98)
Recent transactions:On February 16, 1998, the Company consummated a sale of substantially all of the assets of Proceutics other than real estate to Oread Laboratories, Inc. ("Oread") for approximately $2.1 million.
Sale of VetLife
On April 17, 1998, the Company and VetLife, entered into an Acquisition
Agreement with VL LLC pursuant to which VL LLC acquired substantially all of
VetLife's Assets for a total purchase price consisting of: (i) a cash payment of
$3,500,000, subject to certain working capital adjustments, (ii) an unsecured,
subordinated promissory note in the principal amount of $4,000,000 bearing
interest at a annual rate of 12%, and (iii) certain contingent payments based on
future sales of specified products of VL LLC and its affiliates that, if made in
full, could total up to $5,500,000. The sale of the Assets closed on the same
day. The Company will retain the $5.3 million in investing that were pledged to
secure a letter of credit (See Note 2). The Company expects a gain related to
this transaction which will be recognized in 1998.
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