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M&A Activity • May 6, 2010

News Details

Corporate | 6 May 2010 07:00

Cytos Biotechnology sells platform technology for the identification of monoclonal antibodies to Intercell

Cytos Biotechnology AG / Disposal

06.05.2010 07:00

Dissemination of a Corporate News, transmitted by
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The issuer / publisher is solely responsible for the content of this announcement.

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Schlieren (Zurich), Switzerland, May 6, 2010 - Cytos Biotechnology Ltd
(SIX:CYTN) announced today that it has signed an agreement with Intercell
(VSE:ICLL) to sell its platform technology for the identification of
monoclonal antibodies. The technology is based on expression cloning of
monoclonal antibodies from human B-cells and enables the identification of
anti-infective antibodies to prevent and treat infectious diseases.

Under the agreed terms Intercell will pay EUR 15 million (corresponding to
CHF 21.5 million) to Cytos. The technology, which is a specific application
of Cytos' broader discovery platform DELphi will be transferred to
Intercell, including promising pre-clinical anti-infective monoclonal
antibody candidates discovered by Cytos. The key scientists, who have
successfully developed the technology at Cytos, will be employed by
Intercell.

The primary applications of the monoclonal antibody discovery platform are
in the field of infectious diseases, an area which is outside of Cytos'
core business of chronic disease vaccine development. Therefore, Cytos
Biotechnology elected to monetize this non-core asset and use the proceeds
of the transaction in its therapeutic vaccine programs.

Dr. Wolfgang Renner, CEO of Cytos Biotechnology commented the transaction:
'Intercell is a leading anti-infective company and is ideally positioned
through its Antigen Identification Program (AIP(R)) to capture the full
value of our monoclonal antibody discovery platform. We are very glad that
our innovative technology will enable Intercell to discover important new
monoclonal antibodies for the treatment of infectious diseases.'

Gerd Zettlmeissl, Chief Executive Officer of Intercell added 'Cytos'
outstanding antibody technology compliments our innovative R&D technology
platform and enables pipeline progression within our existing portfolio.'

Monoclonal antibodies form one of the fastest growing segments of the
pharmaceutical industry. The global monoclonal antibodies market was valued
at $27.4 billion in 2008, indicating a Compound Annual Growth Rate (CAGR)
of 30.8% between 2000 and 2008. (1)

'Antibodies can be extremely effective for the prevention and treatment of
infectious diseases. For example, the increasing rate of antibiotic
resistance among certain types of nosocomial pathogens make it extremely
difficult to control hospital acquired infectious diseases in critical
situations. Anti-infective antibodies, well known in the medical arena
before the advent of antibiotic treatments, have experienced a comeback and
monoclonal antibody products are expected to contribute to the control of
severe infections that otherwise might be untreatable in the future',
explained Eszter Nagy, Senior Vice President Research at Intercell.

(1) http://www.marketresearch.com/product/display.asp?productid=2515126

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 81 full-time employees.
Cytos Biotechnology Ltd is listed on the SIX Swiss Exchange (SIX:CYTN).

About Intercell AG

Intercell AG is an innovative biotechnology company that develops novel
vaccines for the prevention and treatment of infectious diseases with
substantial unmet medical needs. Intercell's vaccine to prevent Japanese
Encephalitis is the Company's first product on the market. The Company's
technology platforms include an antigen-discovery system, adjuvants and a
novel patch-based delivery system (Vaccine Patch, Vaccine Enhancement
Patch). Based on these technologies, Intercell has strategic partnerships
with a number of global pharmaceutical companies, including GSK, Novartis,
Merck & Co., Inc., sanofi-aventis, and Pfizer (formerly Wyeth). The
Company's pipeline of investigational products includes a Travelers'
Diarrhea Vaccine Patch (Phase III), a Pseudomonas vaccine candidate (Phase
II), a vaccine to prevent Pandemic Influenza combining our Vaccine
Enhancement Patch with an injected vaccine (Phase II), a vaccine program
for S. aureus, which is being developed with Merck & Co., Inc. (Phase
II/III), as well as a vaccine candidate for Pneumococcus (Phase I). In
addition, further products focused on infectious diseases are in
pre-clinical development. Intercell is listed on the Vienna stock exchange
under the symbol 'ICLL' (U.S. level one ADR symbol 'INRLY').

This foregoing press release may contain forward-looking statements that
include words or phrases such as 'will', 'are expected to', 'are intended
for', 'are designed to' or other similar expressions. These forward-looking
statements are subject to a variety of significant uncertainties, including
scientific, business, economic 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, or
that drugs will be marketed successfully. 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

06.05.2010 Ad hoc announcement, Financial News and Media Release distributed by DGAP.
Media archive at www.dgap-medientreff.de and www.dgap.de

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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
WKN: -
Listed: Freiverkehr in Berlin, München, Stuttgart; Open Market in
Frankfurt; Foreign Exchange(s) SIX

End of News DGAP News-Service

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