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Report Publication Announcement • Sep 28, 2010

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Corporate | 28 September 2010 07:00

Cytos Biotechnology establishes strong patent position around core technology for CYT003-QbG10 in the treatment of allergic asthma and rhinitis

Cytos Biotechnology AG / Key word(s): Research Update

28.09.2010 07:00

Publication of a media release

Schlieren (Zurich), Switzerland, September 28, 2010 - Cytos Biotechnology
Ltd (SIX:CYTN) today announced recent advances in its effort to establish a
strong intellectual property position and freedom to operate around the
core technology for its lead product CYT003-QbG10 in the treatment of
allergic asthma and rhinitis. As of September 2010, the opposition period
for its granted European Patent EP 1 450 856 B1 has expired with no
oppositions filed by third parties. This means that the patent is valid and
that it can no longer be challenged by third parties in front of the
European Patent Office. In its broadest claim, this European Patent
protects any composition of matter comprising an unmethylated
CpG-containing oligonucleotide packaged into a virus-like particle.

European Patent EP 1 450 856 B1 therefore establishes an intellectual
property position for Cytos Biotechnology which goes far beyond its lead
candidate CYT003-QbG10 and which essentially covers the entire field of any
CpG oligonucleotide packaged into all virus-like particles. The feature of
packaging a CpG oligonucleotide into a virus-like particle is the likely
key to the clinical success of the lead candidate CYT003-QbG10 for the
treatment of allergic asthma and rhinitis.

European Patent EP 1 450 856 B1 has an expiry date in September 2022.
Further international patents have been granted to Cytos Biotechnology or
are pending and should extend exclusivity until at least 2026, giving the
opportunity to our future partner to maximize the product's commercial
potential.

Cytos Biotechnology also reports that its own opposition proceeding in
front of the European Patent Office against third party European Patent EP
0 948 510 B1 was successful and has led to the complete revocation of this
patent. This complete revocation has been confirmed in the subsequent
appeal procedure. This success further strengthens Cytos' viewpoint that
there are no valid and enforceable third party patents that limit the
freedom to operate with CYT003-QbG10.

Dr. Martin Sperrle, Cytos' Chief Intellectual Property Officer commented on
the recent developments: 'These important advances in our intellectual
property portfolio represent a strong pillar in our ongoing partnering
discussions and strengthen our leading position in this field.'

About Cytos Biotechnology

Cytos Biotechnology Ltd is a public Swiss biotechnology company that
specializes in the discovery, development and commercialization of a new
class of biopharmaceutical products - the Immunodrugs(TM). Immunodrugs(TM)
are intended for use in the treatment and prevention of common chronic
diseases, which afflict millions of people worldwide. Immunodrugs(TM) are
designed to instruct the patient's immune system to produce desired
therapeutic antibody or T cell responses that modulate chronic disease
processes. Taking advantage of the high flexibility of its Immunodrug(TM)
platform, Cytos Biotechnology has built a diversified pipeline of
Immunodrug(TM) candidates in various disease areas, of which six are
currently in clinical development. The Immunodrug(TM) candidates are
developed both in-house and together with Novartis, Pfizer and Pfizer
Animal Health. Founded in 1995 as a spinoff from the Swiss Federal
Institute of Technology (ETH) in Zurich, the Company is located in
Schlieren (Zurich). Currently, the Company has 78 full-time employees.
Cytos Biotechnology Ltd is listed on the SIX Swiss Exchange (SIX:CYTN).

Glossary

QbG10: the virus-like particle Qbeta filled with the unmethylated
CpG-containing oligonucleotide G10.

unmethylated CpG-containing oligonucleotide: unmethylated CpG motifs exist
only in bacterial but not in human DNA. Human Toll-like receptor 9 binds
bacterial DNA originating from an infection via the CpG motif and prepares
the immune system for a counterattack, inducing thereby a normal
anti-microbial T helper type 1 immune response and suppressing type 2
responses that lead to asthma and allergies.

Virus-like particle (VLP): genetically engineered spherical protein
envelope derived from a virus; does not contain viral genetic material and
cannot replicate but elicits a potent immune response. Qbeta is one example
for the large variety of VLPs.

This foregoing press release may contain forward-looking statements that
include words or phrases such as 'are intended for', 'are designed to',
'likely', 'represent', 'strengthens Cytos' viewpoint', 'limit the freedom
to operate', 'our future partner', 'should extend', 'opportunity' or other
similar expressions. These forward-looking statements are subject to a
variety of significant uncertainties, including scientific, business,
economic, legal, and financial factors, and therefore actual results may
differ significantly from those presented. There can be no assurance that
any further therapeutic entities will enter clinical trials, that clinical
trial results will be predictive for future results, that therapeutic
entities will be the subject of filings for regulatory approval, that any
drug candidates will receive marketing approval from the U.S. Food and Drug
Administration or equivalent regulatory authorities, that drugs will be
marketed successfully, that patents will be granted or later not
invalidated again, or that third party patents make it impossible or
difficult to market such products. Against the background of these
uncertainties readers should not rely on forward-looking statements. The
company assumes no responsibility to update forward-looking statements or
adapt them to future events or developments. This document does not
constitute an offer or invitation to subscribe or purchase any securities
of Cytos Biotechnology Ltd.

Wolfgang A. Renner, PhD
Chief Executive Officer
Cytos Biotechnology Ltd
Phone: +41 44 733 47 03
Fax: +41 44 733 47 04
e-Mail: wolfgang.renner@cytos.com
Website: www.cytos.com

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Language: English
Company: Cytos Biotechnology AG
Wagistr. 25
8952 Schlieren
Schweiz
Phone: +41 44 733 4747
Fax: +41 44 733 4740
E-mail: info@cytos.com
Internet: www.cytos.com
ISIN: CH0011025217, CH0029060735
Swiss Security Number: -
Listed: Freiverkehr in München, Berlin, Stuttgart; Open
Market in Frankfurt; Foreign Exchange(s) SIX

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