Nature of Business

12 Months Ended

Dec. 31, 2012

Nature of Business [Abstract]

Nature of Business

1. Nature of Business

CytRx Corporation ("CytRx" or the "Company") is a biopharmaceutical research and development company specializing in oncology.  CytRx's oncology pipeline includes two programs in clinical development for cancer indications:  aldoxorubicin (formerly known as aldoxorubicin) and tamibarotene.  With its tumor-targeted doxorubicin conjugate aldoxorubicin, the Company has initiated an international Phase 2b clinical trial as a treatment for soft tissue sarcomas, completed a Phase 1b/2 clinical trial primarily in the same indication and initiated a Phase 1b pharmacokinetics clinical trial in patients with metastatic solid tumors and a Phase 1b study of aldoxorubicin in combination with doxorubicin in patients with advanced solid tumors.  The Company held a meeting with the Food and Drug Administration ("FDA") to discuss a potential Phase 3 pivotal trial as a therapy for patients with soft tissue sarcomas whose tumors have progressed following treatment with chemotherapy, and has submitted a special protocol assessment with respect to that potential trial. Tamibarotene is being tested in a double-blind, placebo-controlled, international Phase 2b clinical trial in patients with non-small-cell lung cancer. The Company also has completed its evaluation of a third drug candidate, bafetinib, in the ENABLE Phase 2 clinical trial in high-risk B-cell chronic lymphocytic leukemia (B-CLL), and plans to seek a partner for further development of bafetinib.

At December 31, 2012, the Company had cash and cash equivalents of approximately $14.3 million and short-term investments of $24.0 million. Management believes that the Company's current cash on hand, together with its short-term investments, will be sufficient to fund its operations for the foreseeable future.  The estimate is based, in part, upon the Company's currently projected expenditures for 2013 of approximately $25.2 million (unaudited), whichincludes approximately $8.3 million (unaudited) for its clinical programs for aldoxorubicin, approximately $3.7 million (unaudited) for its clinical program for tamibarotene, approximately $6.7 million (unaudited) for general operation of its clinical programs, and approximately $6.5 million (unaudited) for other general and administrative expenses. These projected expenditures are also based upon numerous other assumptions and subject to many uncertainties, and actual expenditures may be significantly different from these projections.  The Company will ultimately be required to obtain additional funding in order to execute its long-term business plans, although it does not currently have commitments from any third parties to provide it with capital. The Company cannot assure that additional funding will be available on favorable terms, or at all. If the Company fails to obtain additional funding when needed, it may not be able to execute its business plans and its business may suffer, which would have a material adverse effect on its financial position, results of operations and cash flows.