Cytos shares leap on positive IIb allergy data

Shares of Cytos Biotechnology jumped on the news that its mid-stage study of an experimental allergy vaccine hit its primary endpoint. Analysts were quick to leap on the data, noting that positive numbers for CYT003-QbG10 significantly improved Cytos' chances of scoring a partnership deal for the program as it heads into Phase III.

Cytos badly needed a boost like this. In March the Swiss developer announced that it was cutting 42 percent of its workforce after CYT006-AngQb failed a mid-stage trial for high blood pressure. Cytos develops vaccines to treat chronic ailments.

In the Phase IIb for allergic rhinoconjunctivitis, researchers said the experimental treatment helped reduce symptoms and improve the quality of life of patients.

"With the completion of the ongoing phase II study in allergic asthma in Q1 2010, the early development phase will be finalized and the product should be highly attractive for partnering with a leading pharmaceutical company," said CEO Dr. Wolfgang Renner. "QbG10 has the prospect of becoming the first allergen-independent disease modifying therapy for allergic diseases with the potential to address significant unmet medical need in an indication which affects large portions of our society."

"Today's positive data increases the probability that Cytos's vaccine technology works in a large-scale clinical setting (and) increases the possibility that the drug finds a partner that we think will be necessary to allow it to move into Phase III," noted Kepler Capital Markets analyst Mark Belsey.

- check out Cytos' release
- read the Reuters story