Cytos Biotechnology and Kuros Biosurgery have announced their intention to combine their businesses.
The combined entity will operate under the name Kuros Biosciences AG.
The combined company has an attractive late stage pipeline of products. Kuros’ most advanced product candidate is KUR-023, a novel biomaterial designed to seal the dura (membrane covering the brain and spinal cord) after brain and spinal surgery that has successfully completed a European clinical study and is being prepared to be CE Marked in preparation for commercial launch. KUR-111 and KUR-113, Kuros’ most advanced orthobiologic products, have most recently been successfully tested in large, controlled Phase 2b clinical trials and are now progressing towards Phase 3 clinical development.
Products in preclinical development
The combined company will also have several product candidates in preclinical development. Kuros Biosciences will continue all partnerships Cytos has entered into, in particular the two collaborations for CYT003 and the VLP technology with Checkmate Pharmaceuticals and with Arbutus Biopharma. With those two collaborations, the CYT003 program and VLP technology will move forward with investment from the collaboration partners and, if successful, Kuros Biosciences will be eligible for significant development milestone payments and royalties on future sales.
The combined company will be led by the existing Kuros executive management team with Kuros’ CEO, Didier Cowling, taking the role of new group CEO, Alistair Irvine as Chief Business Officer and Jason Schense as Chief Technology Officer. All current members of the Cytos management staff will cease their executive roles when the combination is completed.
Christian Itin, Chairman of Cytos’ Board of Directors, stated: “Following a thorough strategic review, Cytos’ Board and management have concluded that a combination with Kuros is the most promising option for Cytos to establish a business with the potential to create long-term value for Cytos’ shareholders. We are confident that the proposed combination is in the best interest of Cytos shareholders.”
Arnd Kaltofen, Chairman of Kuros’ Board of Directors, added: “The planned combination will allow Kuros not only to access the Swiss public market smoothly, but also add significant Board expertise and further revenue potential through Cytos’ existing licensing deals.”
