rich second round, liquidity all-around....... proteomics, here.......
Tuesday July 25, 10:56 am Eastern Time
Company Press Release
SOURCE: Cytos Biotechnology AG
Cytos Biotechnology Receives CHF 50 Million in
Second Round of Venture Capital Financing
Pharma contracts and cash infusion give Swiss biotech added
momentum; leaders from biotech industry and scientific community elected to the Board of
Directors; management team now in place.
ZURICH, Switzerland, July 25 /PRNewswire/ -- Cytos Biotechnology AG, which discovers and develops new protein drugs
and innovative therapeutic concepts, has announced the completion of a second round of venture capital financing worth CHF
50 million (USD 32 million). The first round of venture capital financing, completed in 1999, generated CHF 11 million.
``This latest infusion of venture capital broadens our solid financial bases,'' said Dr. Wolfgang A. Renner, President and CEO of
Cytos. ``It enables us to finance our growth and to expand our product pipeline significantly. Our success in raising venture
capital from first class investors reinforces our hybrid business model, which combines the advantages of both a product and a
platform technology based company.''
The independently managed financing round includes the already existing Cytos shareholders Global Life Science (Germany),
Innoventure (a subsidiary of Credit Suisse), and Novartis, plus six new investors: Alta Partners (USA), Aventic (a subsidiary of
UBS), Health Cap (Sweden), Lombard Odier (Switzerland), New Medical Technologies (Switzerland), and Private Equity
Direct Finance (a subsidiary of Bank Vontobel, Switzerland).
Alix Marduel and Rolf Zinkernagel join Cytos as Board members
At the General Assembly held on July 14, 2000 in Zurich, the Cytos shareholders elected Alix Marduel M.D., as a
representative of Alta Partners, and Prof. Rolf Zinkernagel M.D., Professor of Experimental Immunology at the University of
Zurich, as new Board members.
``We are very proud to have two outstanding personalities joining our Board'', Dr. Renner stated. ``Their in-depth knowledge
of the biotech industry as well as their scientific expertise will be a tremendous asset for Cytos from a strategic, economic and
scientific perspective.''
Having invested in 20 life science companies, including Millennium Pharmaceuticals, Genset, CV Therapeutics and Aviron, Dr.
Alix Marduel has very broad experience in the biotechnology industry, both in the United States and in Europe. Prof. Rolf
Zinkernagel has been a member of Cytos's Scientific Advisory Board for more than two years. ``His unchallenged expertise in
the field of immunology and his vision will continue to be invaluable for our future development'', Dr. Renner added.
Management team complete
Cytos also announced the completion of its Executive Board with the recent appointment of Lothar Germeroth, PhD, as VP
Business Development, and Jakob Schlapbach as Chief Financial Officer. The Executive Board further comprises Martin
Bachmann, PhD, as Chief Scientific Officer, and Wolfgang Renner, PhD, as CEO and President of Cytos.
Lothar Germeroth has, in the role of CEO, successfully managed two German biotech companies. As CFO of two publicly
quoted companies over the last ten years, Jakob Schlapbach brings with him solid financial experience. He has served as CFO
of Ascom in Berne since 1994. Martin Bachmann joined Cytos from the Basel Institute for Immunology where he had the
position of a senior member. During his career he has published over 100 articles in internationally renowned scientific journals.
Cytos: functional reproduction of the human proteome
Cytos is in an ideal position to ride the wave of post-genomics innovation that is revolutionizing the search for new drugs. Its
DELphi technology functionally reproduces the 100,000 human proteins and makes this huge pool of potent therapeutic
molecules available to pharmaceutical R&D.
In contrast to gene sequence information, which does not deliver therapies, the derived proteins are real drug candidates. The
technology developed by Cytos eliminates a critical discovery bottleneck in the post- genomics era. It feeds pharmaceutical
companies with the relevant proteins to be used as drugs or targets. Starting from zero in 1982, the market for therapeutic
proteins has grown to USD 20 billion in 1999, and is expected to grow at a rate of approximately 20% per year.
Cytos's integrated technology portfolio enables the company to develop its protein drugs and new therapeutic concepts up to
clinical trials. Cytos has established a biopharmaceutical product development capability in accordance with current regulatory
requirements. In the past few years, this business has been validated through a number of high-value licensing agreements.
Cytos recently signed a major research and option contract with a large pharmaceutical company. This contract is worth USD
1.6 million in R&D support in the first phase and has potential for significant additional research funding and milestone payments
plus long-term royalties.
Cytos Biotechnology is a privately owned company based in Zurich, Switzerland, that discovers and develops new therapeutic
proteins for the treatment of chronic diseases.
The company leverages its integrated technology portfolio for in-house product development programs and in collaboration
with the pharmaceutical industry. Its DELphi technology functionally reproduces the approximately 100,000 human proteins
and makes this huge pool of potent therapeutic molecules accessible to high throughput screening. Furthermore, Cytos has
developed novel therapeutic concepts using the immune system to interfere with disease processes. The company plans to
develop its own therapeutic molecules up to mid-stage clinical trials and then license or co-develop the products with
pharmaceutical partners.
Cytos was founded in 1995 by Dr. Wolfgang A. Renner, Prof. James E. Bailey and Prof. Hans M. Eppenberger as a spin-off
from the Swiss Federal Institute of Technology (ETH) in Zurich. Cytos currently employs a multinational team of 60 highly
qualified scientists and technical staff at its headquarters in Zurich.
For more information, please contact:
Claudine Blaser, PhD
Cytos Biotechnology AG
Corporate Development
Wagistrasse 21
CH-8952 Zurich-Schlieren
Tel. +41 1 733 40 22
Fax. +41 1 733 40 38
e-mail: blaser@cytos.com
www.cytos.com
Gina Cella
Cella Communications
Tel. 781-334-4692
Fax. 781-334-4893
e-mail: ginacella@earthlink.net
SOURCE: Cytos Biotechnology AG |
