Cytos Biotechnology AG Makes 80% Workforce Cut and Halts All in House Programs Except Lead Allergy Drug
8/17/2011 6:43:03 AM
Cytos Biotechnology is to slash its workforce by 80% and put all in house development programs that are not related to lead Phase II-stage allergic diseases Immunodrug™ candidate CY003-QbG10 on hold, as part of desperate measures to keep solvent. Its clinical-stage smoking cessation and Alzheimer disease candidates that are partnered with Novartis, and preclinical allergic diseases vaccine candidate, which is partnered with Pfizer, will not be affected. Although the measures will reduce cash burn over coming months, Cytos has an outstanding convertible bond of nominal CHF 41.1 million, which is due on February 20 1012, and the firm projects its financing gap could still be as high as CHF 17 million by then. It is consequently evaluating options on how to avoid a default on the convertible bond, including the potential for a bond restructuring.