Corporate | 21 March 2012 07:00
|
Cytos Biotechnology AG / Key word(s): Contract
Novel Immunodrug(TM) candidate CYT003 offers exciting new approach to asthma therapy Schlieren (Zurich), Switzerland, 21 March, 2012 – Cytos Biotechnology Ltd ('Cytos' or the 'Company'), a Swiss biotech company developing a new class of biopharmaceutical products called Immunodrugs(TM), today announced that it has signed agreements with an international syndicate of strategic investors (the 'Investment Syndicate') to raise a total of up to CHF 37 million (USD 40 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-center 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(TM) 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(TM) clinical candidate,' commented 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,' said 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' said 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, said: '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, said: '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 February 20, 2015.'
Further details of the transaction
The capital increase mentioned above in the total amount of up to CHF 28.75 million will result in the issuance of up to 15'374'328 new shares of Cytos with a nominal value of CHF 0.10 each. Further, up to 2'348'264 additional shares (representing 10% of Cytos' total share capital outstanding after the capital increase mentioned in the previous paragraph) will be issued and acquired by Cytos at nominal value and held as treasury shares to serve primarily as underlying for the Warrants and the Convertible Loan Notes. The shareholders will be asked to approve the transaction as such and in particular (i) this capital increase which will result in a total of up to 17'722'592 new shares of Cytos and (ii) the creation of conditional and authorized capital (each providing for the issuance of up to 11'741'324 shares with a nominal value of CHF 0.10 per share) (the 'Shareholders' Approval'). Cytos intends to seek the Shareholders' Approval at its annual shareholders meeting, planned for April 2012. The invitation and agenda for this meeting will be sent to shareholders shortly. The transaction is, among other conditions precedent, conditional upon Shareholders' Approval and the Investment Syndicate receiving an exemption from the Swiss Takeover Board from the requirement to make an offer for the shares of the Company. Immediately after the implementation of the capital increase, the Investment Syndicate is expected to hold 12'700'532 shares of Cytos representing approximately 54% of the then outstanding shares (assuming the 2'673'796 shares of Cytos offered to its existing shareholders are fully taken up). Should all Warrants be exercised, Cytos would receive additional cash of CHF 28.5 million and the Investment Syndicate would hold a total of approximately 80% of the then outstanding share capital (assuming the conversion of all Convertible Loan Notes).
Changes to the Board of Directors
About CYT003-QbG10 for treating allergic diseases
Background on the Investment Syndicate
Abingworth
Aisling
venBio
For further information please contact:
About Cytos Biotechnology Ltd
This foregoing press release may contain forward-looking statements that include words or phrases such as 'are intended for', 'are designed to', or other similar expressions. These forward-looking statements are subject to a variety of significant uncertainties, including scientific, business, economic and financial factors, and therefore actual results may differ significantly from those presented. There can be no assurance that any further therapeutic entities will enter clinical trials, that clinical trial results will be predictive for future results, that therapeutic entities will be the subject of filings for regulatory approval, that any drug candidates will receive marketing approval from the U.S. Food and Drug Administration or equivalent regulatory authorities, or that drugs will be marketed successfully. Against the background of these uncertainties readers should not rely on forward-looking statements. The Company assumes no responsibility to update forward-looking statements or adapt them to future events or developments. THIS PRESS RELEASE DOES NOT CONSTITUTE AN OFFER, OR THE SOLICITATION OF AN OFFER TO SUBSCRIBE FOR OR PURCHASE ANY SECURITIES TO ANY PERSON IN AUSTRALIA, CANADA, JAPAN, OR THE UNITED STATES OR IN ANY OTHER JURISDICTION, NOR DOES IT CONSTITUTE A PROSPECTUS WITHIN THE MEANING OF ARTICLE 652A OR 1156 OF THE SWISS CODE OF OBLIGATIONS OR A LISTING PROSPECTUS PURSUANT TO THE LISTING RULES OF THE SIX SWISS EXCHANGE LTD. ANY DECISION TO PURCHASE ANY SECURITIES REFERRED TO HEREIN SHOULD BE SOLELY BASED ON THE RELEVANT PROSPECTUS. IN ADDITION, THE OFFER AND SALE OF THE SECURITIES REFERRED TO HEREIN HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE 'SECURITIES ACT') OR UNDER THE APPLICABLE SECURITIES LAWS OF AUSTRALIA, CANADA OR JAPAN. THE SECURITIES REFERRED TO HEREIN MAY NOT BE OFFERED, SOLD OR DELIVERED WITHIN THE UNITED STATES ABSENT REGISTRATION UNDER THE SECURITIES ACT OR AN APPLICABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT. SUBJECT TO CERTAIN EXCEPTIONS, THE SECURITIES REFERRED TO HEREIN MAY NOT BE OFFERED OR SOLD IN AUSTRALIA, CANADA OR JAPAN OR TO, OR FOR THE ACCOUNT OR BENEFIT OF, ANY NATIONAL, RESIDENT OR CITIZEN OF AUSTRALIA, CANADA OR JAPAN. THERE WILL BE NO PUBLIC OFFER OF THE SECURITIES IN THE UNITED STATES. IN THE UNITED KINGDOM, THIS PRESS RELEASE IS DIRECTED ONLY AT (I) PERSONS WHO HAVE PROFESSIONAL EXPERIENCE IN MATTERS RELATING TO INVESTMENTS FALLING WITHIN ARTICLE 19(1) OF THE FINANCIAL SERVICES AND MARKETS ACT 2000 (FINANCIAL PROMOTION) ORDER 2005 (THE 'ORDER'), AND (II) HIGH NET WORTH ENTITIES FALLING WITHIN ARTICLE 49(2) OF THE ORDER, AND (III) PERSONS TO WHOM IT WOULD OTHERWISE BE LAWFUL TO DISTRIBUTE IT. IN ADDITION, IF AND TO THE EXTENT THAT THIS PRESS RELEASE IS COMMUNICATED IN, OR THE OFFER OF SECURITIES TO WHICH IT RELATES IS MADE IN, ANY EEA MEMBER STATE THAT HAS IMPLEMENTED DIRECTIVE 2003/71/EC (TOGETHER WITH ANY APPLICABLE IMPLEMENTING MEASURES IN ANY MEMBER STATE, THE 'PROSPECTUS DIRECTIVE'), THIS PRESS RELEASE AND THE OFFERING OF ANY SECURITIES DESCRIBED HEREIN ARE ONLY ADDRESSED TO AND DIRECTED AT PERSONS IN THAT MEMBER STATE WHO ARE QUALIFIED INVESTORS WITHIN THE MEANING OF THE PROSPECTUS DIRECTIVE (OR WHO ARE OTHER PERSONS TO WHOM THE OFFER MAY LAWFULLY BE ADDRESSED) AND MUST NOT BE ACTED ON OR RELIED ON BY OTHER PERSONS IN THAT MEMBER STATE. End of Corporate News 21.03.2012 News transmitted by EquityStory AG. The issuer is responsible for the contents of the release. EquityStory publishes regulatory releases, media releases on the capital market and press releases. The EquityStory Group distributes authentic and real-time financial news for over 1’300 listed companies. The Swiss news archive can be found at http://www.equitystory.ch/nachrichten |
| Language: | English | |
| Company: | Cytos Biotechnology AG | |
| Wagistr. 25 | ||
| 8952 Schlieren | ||
| Switzerland | ||
| Phone: | +41 44 733 4747 | |
| Fax: | +41 44 733 4740 | |
| E-mail: | info@cytos.com | |
| Internet: | www.cytos.com | |
| ISIN: | CH0011025217, CH0029060735 | |
| Swiss Security Number: | – | |
| Listed: | Freiverkehr in Berlin, München, Stuttgart; Open Market in Frankfurt; SIX | |
| End of News | EquityStory AG News-Service |
|
|
| 161480 21.03.2012 |