Cytos Biotechnology Shares Slump As Nicotine Trial Fails
By Julia Mengewein, Of DOW JONES NEWSWIRES
ZURICH -(Dow Jones)- Cytos Biotechnology Ltd (CYTN.EB) shares slid in early
trade Friday after the company said late Thursday that its anti-nicotine
addiction trial failed to meet its endpoint.
At 0720 GMT, Cytos' shares were down CHF9, or 40%, at CHF13.45.
Cytos, which has partnered out the compound NIC002 to treat nicotine addiction
to Swiss pharmaceutical company Novartis AG (NVS), said the target of the study
was to increase the time until smokers who quit smoking relapse into the habit.
Novartis will continue with the trials, but a positive outcome is unlikely,
says Helvea analyst Olav Zilian.
Cytos has a technology to develop special kinds of vaccine that treat chronic
diseases, using a method that targets the cause of the disease and modifying the
disease's progression rather than just suppressing its symptoms.
But the processes are complicated and some analysts say Cytos needs more money
to better investigate and understand its novel approach.
The Schlieren, Switzerland-based company, still has two compounds in its late
stage pipeline. One is to treat allergies and the other one to ease
hypertension.
Cytos also is in a partnership with Pfizer Inc. (PFE) on undisclosed human and
animal health applications.
Company Web Site: www.cytos.com
-By Julia Mengewein, Dow Jones Newswires; +41 43 443 80 45; julia.mengewein@
dowjones.com
(END) Dow Jones Newswires
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