CytRx completes sale of molecular chaperone assets to Orphazyme ApS in deal worth up to $120 million

US biopharma firm CytRx Corp (Nasdaq: CYTR) says that it has sold the worldwide rights to its molecular chaperone assets to privately-held Copenhagen, Denmark-based Orphazyme ApS.

If all of the development and commercialization milestones in the transaction agreement are met, in addition to an up-front payment, CytRx could receive total payments of up to $120 million, in addition to royalties on sales of products developed by Orphazyme from its molecular chaperone technology. This transaction represents the completion of CytRx’ previously-announced, non-dilutive monetization strategy for its non-core assets.

“This could be a game-changing transaction for CytRx with an ultimate potential value that exceeds our current market capitalization,” said president and chief executive Steven Kriegsman. “It illustrates our exceptional execution of a strategy to acquire assets and add value, in this case through multiple clinical and preclinical trials, then monetize them to support our focus on oncology,” he added.