Back from the brink

A new investor syndicate has rescued Cytos Biotechnology AG (SIX:CYTN) from the brink and is planning to plow up to CHF37 million ($40.3 million) into the Swiss biotech, which in the past eight months has nearly defaulted on its outstanding debt, suspended all R&D save for one molecule and announced a headcount reduction of nearly 90%.

The combination equity and debt financing is being led by venBio and includes Abingworth; Aisling Capital; and Amgen Inc. (NASDAQ:AMGN). Cytos will receive the majority of the financing at closing, with a tranche of CHF6.6 million ($7.2 million) of convertible notes subject to undisclosed development milestones. The new investors are expected to hold about 54% after the offering...