Cytos to wind down operations

Cytos Biotechnology AG (SIX:CYTN) fell CHF2.72 (95%) to CHF0.15 on Monday after CYT003 -- its only product -- failed in a Phase IIb allergic asthma trial and the company said it is evaluating options to wind down operations. Subcutaneous CYT003 given seven times over 10 weeks missed the primary endpoint of reducing Asthma Control Questionnaire (ACQ) scores at week 12 vs. placebo in about 360 patients with moderate to severe allergic asthma not sufficiently controlled on standard controller therapy. CYT003 is a virus-like particle (VLP) containing an oligonucleotide agonist of toll-like receptor 9 (TLR9).

As a result, Cytos discontinued the trial and said it is evaluating options for an "ordinary winding down of operations and liquidation of the company or a possible bankruptcy." The company said it also has started the process for a mass dismissal of its 36 employees. As of March 31, Cytos had CHF31 million ($35 million) in cash. ...