Smoking out a better solution

Cytos Biotechnology AG says Novartis AG in-licensed its CYT002-NicQb nicotine vaccine - which missed the primary endpoint in a 2005 Phase II trial - because it has improved the product's potency and side effect profile through a better formulation and more optimal administration regimen.

Novartis (NVS; SWX:NOVN, Basel, Switzerland) obtained exclusive, worldwide rights to develop and commercialize CYT002-NicQb to treat nicotine addiction. Cytos (SWX:CYTN, Zurich, Switzerland) will receive CHF35 million ($28.9 million) up front and is eligible for CHF565 million ($467.1 million) in milestones, plus royalties. The pharma company expects to start a Phase III trial next year...