MedNous

Cytos completes major financing

Wednesday 16 May 2012

Country: Switzerland

Cytos Biotechnolgy AG has completed a major portion of a planned CHF 37 million (€30.8 million) equity and debt financing that will give it the resources to conduct a global, multi-centre Phase 2b study of its lead asthma product, CYT003.

The new funding will give the investor syndicate approximately 54% of the company, and through warrants, the possibility of raising this stake to 80% in what appears to be a bet on the Swiss company’s main product becoming a success.

Cytos has undergone management shake-ups and layoffs that started with two important setbacks in 2009 when its smoking cessation drug failed to meet its primary endpoint in a Phase 2 study and its hypertension drug failed to induce a significant reduction in ambulatory blood pressure in another Pha