Cytel disappearing into subsidiary

Cytel Corp. shareholders - who may have thought that their money was invested in a late-stage company - now have their hopes riding exclusively on the preclinical technology in the company's Epimmune Inc. vaccine subsidiary following CYTL's decision to abandon the cell adhesion field.

CYTL last week said it has stopped development of its Cylexin second generation ciliary neurotrophic factor due to lack of efficacy in a Phase II/III trial to treat reperfusion injury in infants undergoing cardiopulmonary bypass. The move, coupled with the sale of the company's remaining assets, leaves CYTL in the role of a holding company for Epimmune...