Cytos considering options to wind down company
ZURICH, April 14
ZURICH, April 14 (Reuters) - Cytos Biotechnology said on Monday it was looking at options to wind down its operations and liquidate the company after its main drug candidate failed in a clinical trial, sending it shares down 95 percent.
The Zurich-based firm said its experimental asthma drug CYT003 failed to meet several goals in a mid-stage study and it had decided to terminate the clinical trial.
Cytos said the likelihood of securing new funding to continue its operations was remote.
"Consequently, the company's board of directors has instructed management to evaluate the options for an ordinary winding down of operations and liquidation of the company or possible bankruptcy," it said in a statement.
Cytos said it did not expect to be able to repay any convertible bonds or a liquidation dividend to shareholders. It said it had started a consultation process to lay off all of its 36 employees.
By 0744 GMT, shares in Cytos had plunged to trade at 0.15 Swiss franc per share.
Founded in 1995 as a spin-off from Zurich's technical university, Cytos generated a net loss of 30.8 million Swiss francs ($35 million) last year on revenues of 1 million. At the end of March, it had a cash balance of 31 million. ($1 = 0.8759 Swiss francs) (Reporting by Caroline Copley; editing by Tom Pfeiffer)