Mesothelioma drug acquired by CytRx

LOS ANGELES -
CytRx Corp. (CYTR), a biopharmaceutical company headquartered in Los Angeles, has completed its acquisition of Innovive Pharmaceuticals Inc. Innovive is the maker of a cancer vaccine that is currently being tested in mesothelioma, lung cancer, leukemia and myelodysplastic syndrome patients. The company also developed the cancer drug tamibarotene and other drug candidates targeting leukemia, sarcoma, breast and lung cancers.

Innovive stockholders received 2.6 million CytRx shares as part of the deal. CytRx could also make as much as $18.3 million in milestone payments, depending on the success or failure of Innovive’s drug candidates.

Biotechnology company CytRx Corp. said Monday it completed its buyout of Innovive Pharmaceuticals Inc., giving CytRx ownership of the cancer drug tamibarotene and three other drug candidates.

Innovive stockholders approved the deal on Friday, CytRx (nasdaq: CYTR - news - people ) said, accepting 2.6 million CytRx shares. CytRx may also make up to $18.3 million in milestone payments, depending on the performance of the drug candidates in Innovive's portfolio. CytRx agreed to buy Innovive in June.

Innovive's drugs include Tamibarotene, which has been approved in Japan to treat a form of leukemia. The drug is being studied in the U.S., Europe and Canada. The company is also developing an oral anti-leukemia drug, a cancer vaccine which is being tested in lung cancer, leukemia, myelodysplastic syndrome and mesothelioma, and an anti-tumor drug being tested in sarcoma, breast and lung cancers.

Myelodysplastic syndrome, or MDS (nyse: MDZ - news - people ), is a cancer affecting the blood and bone marrow. Mesothelioma strikes the cells lining the lungs, and is linked to asbestos exposure.

In morning trading, CytRx shares lost a penny, to 56 cents.