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CytRx plunges after announcing Phase 3 trial results

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CytRx shares tanked nearly 60 percent after the company said a late-stage trial showed one of its cancer treatments did not perform better than other drugs.

The biopharmaceutical research and development company performed clinical trials to "evaluate the efficacy and safety of aldoxorubicin as a second-line treatment for patients with soft tissue sarcomas," the company said in a press release.

The results did not meet expectations.

"This analysis did not provide for sufficient follow-up for the nearly two-thirds of patients who entered the Phase 3 study after the hold was resolved and enrollment resumed," CytRx reported.

The clinical hold took place in November 2014, and CytRx attributes its shortcomings of its Phase 3 trials directly to the hold.

The unforeseen clinical hold that interrupted this study impacted the outcome of the current evaluation, underscoring a need for a subsequent analysis. " said Daniel Levitt, executive vice president and chief medical officer of CytRx.

CytRx said it "expects to conduct a second analysis … and to announce the results of this evaluation and hold an end-of-Phase 3 meeting with the Food and Drug Administration (FDA) in the fourth quarter of 2016. "

Shares of CytRx have plunged nearly 62 percent in 2016. The company hit a new 52-week low of 74 cents per share Tuesday.

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