Shares of CytRx Corporation (NASDAQ:CYTR) are collapsing, down 66% at time of writing, after the company provided initial results from its Phase III study with aldoxorubicin in patients with relapsed or refractory soft-tissue sarcoma (STS), demonstrating that aldoxorubicin was unable to meet its primary endpoint of progression-free survival (PFS), versus an investigator’s choice therapy.

In reaction, FBR analyst Christopher James slashed the price target to $3.00 (from $8.00), while reiterating an Outperfom rating on the stock.

James commented, “We spoke with management, which hosted a call to discuss initial results; we provide three key takeaways for investors: (1) Despite missing on PFS, aldoxorubicin demonstrated clear clinical activity, with an objective response rate (ORR) nearly double the rate observed within the comparator arm; (2) our focus turns to additional analyses, which will include a greater proportion of patients previously censored from the initial analysis; (3) we believe a meaningful benefit in a tumor subtype or subpopulation could highlight a path forward in STS. While we are disappointed by the results of the Phase III study, our focus shifts to the additional analyses expected in 4Q16 and the readout from the Phase IIb study with aldoxorubicin in small-cell lung cancer (SCLC) expected in 2H16.”

According to, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Christopher James has a yearly average return of -10.6% and a 40% success rate. James has a -13.2% average return when recommending CYTR, and is ranked #3863 out of 4038 analysts.

Out of the 4 analysts polled by TipRanks, 2 rate Cytrx stock a Buy, while 2 rate the stock a Hold. With a return potential of 105.8%, the stock’s consensus target price stands at $5.17.