Cytos Biotechnology Ltd, a Swiss biotech company developing a new class of biopharmaceutical products called Immunodrugs, has signed agreements with an international syndicate of strategic investors to raise a total of up to CHF37 million (USD40 million) in equity and debt.
The investment round is being led by venBio and includes investments by a syndicate including Amgen, Abingworth and Aisling Capital.
The new funds will recapitalize Cytos and enable it to further advance its programs and specifically to conduct a global multi-centre Phase IIb clinical trial with its lead product CYT003-QbG10 (CYT003) in patients suffering from allergic asthma. CYT003 is a novel allergen-independent immunotherapy with disease-modifying potential that could be used to treat a broad range of different allergies. Cytos will also use the funds to develop additional pipeline programs and to progress its novel Immunodrug platform on which CYT003 is based.
This transaction completes the financial restructuring announced in 2011 which, as previously announced, also included the restructuring of the Company’s outstanding convertible bonds.
“venBio is pleased to support one of the most promising biotechnology companies in Europe. I am confident that with the support of the Investment Syndicate’s global top-tier investors, we will be able to assist Cytos in realizing the significant potential of its lead Immunodrug clinical candidate,” says Kurt von Emster, Managing Director of venBio.
“Amgen recognizes there is significant unmet medical need for the treatment of asthma and we are pleased to support the ongoing development of CYT003, a novel immunotherapy based treatment approach which has already generated promising data in a number of earlier clinical studies,” says Dr Sean Harper, Amgen’s Executive Vice President, Research and Development.
“Abingworth is delighted to be working with Cytos and our co-investors to help the company progress this important program in asthma,” says Partner Dr Joseph Anderson. “We see potential for significant value creation through this venture investment in public equity”.
PD Dr Kai-Michael Beeh from the insaf Respiratory Research Institute, who has been the principal investigator of a positive Phase II study conducted with CYT003 in asthma patients, says: “Asthma control remains an important therapeutic goal which unfortunately cannot be achieved in a significant proportion of patients using current treatment options. CYT003 offers an exciting new approach to asthma therapy that could provide patients with a therapeutic alternative to either replace or complement commonly used asthma medications, such as inhaled corticosteroids, while maintaining or improving asthma control.”
Dr Thomas Hecht, Executive Chairman of Cytos, says: “The Board of Directors and the Management are excited that such a prestigious syndicate of renowned investors have decided to recapitalize Cytos in one of Europe’s largest biotech financings so far this year. This recapitalization will enable us to conduct a Phase IIb clinical trial with CYT003, which, if successful, would be a very significant value-inflection point for the Company and which would also be important for Cytos’ ability to repay its restructured convertible bonds on 20 February, 2015.”
