Cytos Biotechnology Shares Slump As Nicotine Trial Fails
16 October 2009 - 7:08PM
Dow Jones News
Cytos Biotechnology Ltd (CYTN.EB) shares slid in early trade
Friday after the company said late Thursday that its anti-nicotine
addiction trial failed to meet its endpoint.
At 0720 GMT, Cytos' shares were down CHF9, or 40%, at
CHF13.45.
Cytos, which has partnered out the compound NIC002 to treat
nicotine addiction to Swiss pharmaceutical company Novartis AG
(NVS), said the target of the study was to increase the time until
smokers who quit smoking relapse into the habit.
Novartis will continue with the trials, but a positive outcome
is unlikely, says Helvea analyst Olav Zilian.
Cytos has a technology to develop special kinds of vaccine that
treat chronic diseases, using a method that targets the cause of
the disease and modifying the disease's progression rather than
just suppressing its symptoms.
But the processes are complicated and some analysts say Cytos
needs more money to better investigate and understand its novel
approach.
The Schlieren, Switzerland-based company, still has two
compounds in its late stage pipeline. One is to treat allergies and
the other one to ease hypertension.
Cytos also is in a partnership with Pfizer Inc. (PFE) on
undisclosed human and animal health applications.
Company Web Site: www.cytos.com
-By Julia Mengewein, Dow Jones Newswires; +41 43 443 80 45;
julia.mengewein@dowjones.com