ZURICH, June 23 (Reuters) - Swiss biotech company Cytos is aiming to clinch a partnering deal worth over 600 million Swiss francs ($541 million) for its asthma vaccine after strong mid-trial data, the group's head was quoted as saying.
Shares in Cytos jumped 21 percent to trade at 15.25 francs at 0759 GMT on Wednesday, easily outperforming a near flat European pharmaceuticals sector index.
CEO Wolfgang Renner said in an interview with Swiss weekly Handelszeitung the group was starting talks to sell the licence for the drug.
'We waited on purpose on the asthma data so that we could get a better deal on a sale. Now we are beginning to negotiate,' Renner said.
A recent phase II study showed its drug CYT003-QbG10 was safe and effective in allergic asthma and sent shares soaring. Cytos focuses on so-called immunodrugs, aimed at treating chronic diseases and addictions through vaccination.
Novartis bought the rights to the Cytos NIC002 anti-smoking vaccine in 2007 in a deal valued up to 600 million francs, including an upfront payment of 35 million francs, with further payments contingent on development milestones.
Renner said Cytos was aiming for a more lucrative deal for its asthma vaccine.
'I don't want to comment on numbers, but like I say, I am expecting something considerably above 600 million francs in total,' Renner said in the interview, adding he expected to conclude a deal in the next 12 months.
(Reporting by Katie Reid; Editing by David Cowell) ($1=1.109 Swiss Franc) Keywords: CYTOS/ (Zurich Newsroom +41 58 306 7336, fax +41 44 251 0476, zurich.newsroom@news.reuters.com) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
Shares in Cytos jumped 21 percent to trade at 15.25 francs at 0759 GMT on Wednesday, easily outperforming a near flat European pharmaceuticals sector index.
CEO Wolfgang Renner said in an interview with Swiss weekly Handelszeitung the group was starting talks to sell the licence for the drug.
'We waited on purpose on the asthma data so that we could get a better deal on a sale. Now we are beginning to negotiate,' Renner said.
A recent phase II study showed its drug CYT003-QbG10 was safe and effective in allergic asthma and sent shares soaring. Cytos focuses on so-called immunodrugs, aimed at treating chronic diseases and addictions through vaccination.
Novartis bought the rights to the Cytos NIC002 anti-smoking vaccine in 2007 in a deal valued up to 600 million francs, including an upfront payment of 35 million francs, with further payments contingent on development milestones.
Renner said Cytos was aiming for a more lucrative deal for its asthma vaccine.
'I don't want to comment on numbers, but like I say, I am expecting something considerably above 600 million francs in total,' Renner said in the interview, adding he expected to conclude a deal in the next 12 months.
(Reporting by Katie Reid; Editing by David Cowell) ($1=1.109 Swiss Franc) Keywords: CYTOS/ (Zurich Newsroom +41 58 306 7336, fax +41 44 251 0476, zurich.newsroom@news.reuters.com) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.