CytRx Corp. (Nasdaq: CYTR), a company specializing in making cancer-related drugs, said today it has sold its remaining shares in RXi Pharmaceuticals (NASDAQ: RXII) for $7 million.
The sale proceeds, CytRx said, will be used to fund the company's batch of upcoming clinical trials. No further details on the sale were disclosed.
CytRx first gained a stake in RXi Pharmaceuticals in 2007 when it transferred its RNA business to the company. Shortly after, CytRx began divesting its stake in RXi in 2008, distributing about 36% of RXi shares to its shareholders as a dividend, and has since continued to divest in increments.
CytRx's Bafetinib drug is undergoing Phase 2 clinical trials as a treatment for chronic lymphoid leukemia, the most common type of leukemia, as well as for advanced prostate and brain cancer.
The company's pipeline also includes Tamibarotene, which is undergoing a Phase 1 trial for the treatment of lung cancer.
RXi Pharmaceuticals' shares dropped 2.4% on the news to close at $2.42 on Wednesday, while CytRx gained almost 5% to close at roughly 92 cents.