Cytos Biotech Slashes Staff, Research

Cytos Biotechnology will reduce its workforce from 82 to about 10, and it is abandoning work on early-stage projects to focus its resources on CYT003-QbG10, a combination of a virus-like particle and synthetic DNA fragment that is in Phase II trials for allergies and asthma. Wolfgang Renner has resigned as CEO, and Thomas Hecht, current chairman of Cytos’ board, will take over executive chairman duties. Cytos is struggling to find a way to pay off a convertible bond of $52 million, due on Feb. 20, 2012. The Zurich-based company says it could still be short by $22 million come February.