ORLANDO, Fla., June 4, 2008 (PRIME NEWSWIRE) -- RedChip Independent, a division of RedChip Companies, Inc., has initiated coverage on CytRx Corporation (Nasdaq:CYTR), a biopharmaceutical research and development company engaged in developing human therapeutic products primarily based on small molecule Molecular Chaperone co-induction technology.
Harry Russell, MBA, RedChip Research Analyst, reported:
"CytRx develops products based on the belief that stresses on cells cause a protein breakdown that brings about various disease states and ultimately cellular damage. By amplifying what is known as the 'Molecular Chaperone Response,' the Company believes that it can assist the body's natural mechanism for fixing misfolded proteins.
"CYTR has a paradigm shift technology which may offer solutions across multiple diseases with large patient populations. The Company is very well-capitalized to leverage its platform technology and continue to move it up the value chain so as to drive shareholder value," Russell continued. "The markets for CytRx's products are enormous, but the clarity as to the extent of its technology has yet to emerge. If in fact Molecular Chaperone Technology has broad applicability and reduces the impact of various ailments caused by cell stress, then the market is billions of dollars. We feel that the Company is well-capitalized, is handling the FDA situation as well as can be expected, and has a contingency plan of acquisition activity to be deployed if its central program becomes compromised.
"We believe that the Company offers a solid value proposition at these levels and initiate coverage on CYTR with a 'Speculative Buy' rating," he concluded.
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Disclosure
The analyst(s) contributing to this report do not hold any share of the subject securities. Additional information on the securities mentioned in this report is available upon request. This report is based on data obtained from sources we believe to be reliable but is not guaranteed as to accuracy and is not purported to be complete. As such, neither the information nor any opinion expressed constitutes an offer, or an invitation to make or garner an offer, to buy or sell any securities or any options, futures, or other derivatives related to such securities. This publication was furnished on the condition that it will not form a primary basis for any investment decision. Each investor must make their own determination of the appropriateness of an investment in any securities referred to herein based on the legal, tax, and accounting considerations applicable to such investor and their own investment strategy. Any opinions expressed herein are subject to change. The subject security is not a client of RedChip Companies, Inc., or any of its affiliates.