Cytos Biotech to wind down key operational activities

Switzerland-based Cytos Biotechnology (SIX: CYTN) has entered into agreements with major creditors resulting in a reduction of liabilities and provisions of the company of around 5 million Swiss francs ($5.7 million).

In addition, the four convertible loan note holders Abingworth, Amgen, venBio and Aisling have agreed to subordinate part of their loan notes to ordinary creditors. The loan notes will remain senior to the convertible bonds. In the aggregate, these measures allow for a continued operation of the company.

In order to reduce future expenses, Cytos is winding down key operational activities, in particular related to the development and manufacturing of CYT003. Last month, Cytos announced that the Phase IIb study of CYT003 failed to achieve statistical significance patients with moderate to severe allergic asthma.