Cytos Biotechnology Ltd Reports Third Quarter 2013 Financial Results and Recent Developments
ZURICH, October 31, 2013 /PRNewswire/ --
- Completion of patient enrolment in the ongoing Phase 2b clinical trial with CYT003
- Investor syndicate will pay Cytos CHF 6.625 million for achievement of this milestone
- Share capital increase in form of a rights offering to be approved at an extraordinary shareholders' meeting on November 4, 2013
- CHF 9 million of the proposed capital increase is already firmly committed by the investor syndicate that invested in May 2012
Cytos Biotechnology Ltd. (SIX:CYTN) ("Cytos" or the "Company") announced today its financial results and business highlights for the quarter ended September 30, 2013.
Cytos completed patient enrolment in the ongoing Phase 2b study with Cytos' lead product CYT003 in patients with moderate to severe allergic asthma, not sufficiently controlled on current standard therapy. With completion of enrolment, Cytos called the second tranche of the convertible loan notes in the amount of CHF 6.625 million from Abingworth, venBio, Amgen and Aisling. The convertible loan notes agreement was part of the investment made by these investors in May 2012.
On November 4, 2013 an extraordinary shareholders' meeting will be held to approve a share capital increase in the form of a rights offering which could result in cash proceeds of up to CHF 17.6 million. CHF 9 million of the proposed capital increase is already firmly committed by Abingworth, venBio, Amgen and Aisling. These shareholders hold collectively more than 50% of the outstanding share capital and have committed to vote in favor of the ordinary capital increase as well as the increase in conditional and authorized capital as proposed by the Board of Directors.
The additional cash proceeds will ensure that Cytos remains well capitalized to further advance the development of its lead program CYT003.
On October 23, 2013 the company conducted an R&D update for investors and analysts focused on its lead program CYT003. The presentations can be accessed as a webcast on the company's home page.
On September 9, 2013, Cytos announced additional results of the Phase 2a clinical trial with its lead product CYT003 which is developed as a potential new treatment for allergic asthma. A post-hoc analysis of data published in the March issue of The Journal of Allergy and Clinical Immunology was presented at the European Respiratory Society Annual Congress in Barcelona.
Three-month period from July 1 to September 30, 2013
On September 30, 2013, funds available for financing the operations (including cash, cash equivalents & trade and other receivables) amounted to CHF 15.03 million. The funds were CHF 3.03 million less than on June 30, 2013, primarily due to expenses incurred in ongoing operating activities. In the third quarter 2013 the trade receivables have increased by CHF 0.90 million, mainly due to invoiced license fees of CHF 1.08 million to Novartis. This invoice was paid on October 8, 2013. On September 30, 2013, the nominal value of convertible bonds not held by the Company amounted to CHF 13.17 million. Cytos did not buy back any convertible bonds on the market during the third quarter of 2013. The nominal value of the secured convertible loan notes (first tranche) is CHF 6.625 million. Patient enrolment has been completed in the on-going phase 2b study with Cytos' lead product CYT003 in patients suffering from moderate to severe allergic asthma which is not controlled by the standard treatment. Based on this completion of enrolment, Cytos has called the second tranche of the convertible loan notes in the amount of CHF 6.625 million from Abingworth, venBio, Amgen and Aisling, which was part of the investment by these investors in May 2012.
Revenue comprising deferred income from license fees paid by Novartis of CHF 0.25 million has been recognized in the third quarter 2013, unchanged from the third quarter 2012.
Financial summary (IFRS, consolidated)
(in CHF million) Q3 2013 Q3 2012 Revenue 0.3 0.3 Net operating cost (6.0) (4.2) Operating loss (5.8) (3.9) Net loss (7.6) (5.2) Net loss per share (in CHF) (0.34) (0.37) (in CHF million) 30.9.2013 30.6.2013 Cash, cash equivalents & trade and other receivables 15.0 18.1 Full-time equivalents 25.3 24.5
The detailed Q3 Financial Report 2013 can be downloaded at:
Conference Call to be held on November 5, 2013, 9 a.m. EDT / 15:00 CET
Senior Executive Management will provide an update on recent developments.
The dial-in numbers are:
Please dial-in 10 minutes prior to the call in order to register for the call. The presentation will be available 1 hour prior to the conference call.
The conference call will be available as a replay 48 hours after the call.
Please use the following dial-in:
Access Code: 13395#
About CytosBiotechnology Ltd
Cytos is a public biopharmaceutical company focused on the development of targeted immuno-therapies. The Company's lead product candidate CYT003 is a novel, first-in-class, immune modulator in Phase 2 clinical development as a potential new treatment for asthma. CYT003 has a novel mechanism of action that inhibits the immune response that causes asthma, and may therefore be beneficial for the control of asthma. In a successfully completed Phase 2a study, CYT003 was shown to maintain asthma control and lung function in patients with persistent allergic asthma, despite withdrawal of standard therapy with inhaled corticosteroids. CYT003 has been shown to have a good safety and tolerability profile in more than 450 individuals receiving the active agent so far. Cytos was founded in 1995 as a spinoff from the Swiss Federal Institute of Technology (ETH) in Zurich. It is located in Schlieren (Zurich), Switzerland. The Company is listed according to the Main Standard on the SIX Swiss Exchange Ltd under the symbol CYTN.
Forward Looking Statements
This media release contains certain forward-looking statements that involve risks and uncertainties that could cause actual results to be materially different from historical results or from any future results expressed or implied by such forward-looking statements. You are urged to consider statements that include the words "will" or "expect" or the negative of those words or other similar words to be uncertain and forward-looking. Factors that may cause actual results to differ materially from any future results expressed or implied by any forward-looking statements include scientific, business, economic and financial factors, including that CYT003 may not demonstrate safety or efficacy in clinical trials, that there may be delays in development or that CYT003 may not receive marketing approval, and that the Company relies on outside financing to meet capital requirements, which may not be available under acceptable terms or at all. Against the background of these uncertainties, readers should not rely on forward-looking statements. The Company assumes no responsibility for updating forward-looking statements or adapting them to future events or developments.
SOURCE Cytos Biotechnology Ltd