Altamira Therapeutics Announces Divestiture of Inner Ear Development Assets
Altamira Therapeutics (NASDAQ:CYTO) has entered a definitive agreement to sell a 90% stake in its subsidiary Zilentin, focusing on inner ear therapeutics. The deal includes an immediate cash payment of $2 million and potential future payments totaling $55 million. Zilentin will acquire the option to purchase remaining inner ear assets for $25 million cash. This transaction aligns with Altamira's strategy to concentrate solely on RNA delivery technology. CEO Thomas Meyer will oversee Zilentin while continuing at Altamira, which is also working to divest its Bentrio nasal spray by year-end.
- Immediate cash payment of $2 million and a second payment of $25 million upon option exercise.
- Potential milestone payments of up to $55 million and future royalties.
- Strategy shift to focus solely on RNA delivery technology, enhancing business focus.
- None.
HAMILTON, BERMUDA , Oct. 21, 2022 (GLOBE NEWSWIRE) --
- Definitive agreement to sell
90% stake in Company’s Zilentin subsidiary with option to acquire all of Altamira’s remaining inner ear development assets in Q4 2022 - Company to receive immediate cash payment of
$2 million ,$25 million second upfront payment upon option exercise, and potential milestone payments of up to$55 million and future royalties - Buyer is a European family office seeking to continue and expand Altamira’s projects in hearing loss, tinnitus, and vertigo
- Transaction represents important first step in Altamira’s strategy to focus solely on RNA delivery
- Company actively working towards divestiture of BentrioTM before year-end
Altamira Therapeutics Ltd. (NASDAQ:CYTO), a company dedicated to developing therapeutics that address important unmet medical needs, today announced that it has entered into an agreement regarding the sale of certain of its legacy assets comprised of its inner ear therapeutics research and development programs and a license to use its RNA delivery technology in certain inner ear applications to a European family office (the “Buyer”), in a multi-step process.
This divestiture is in line with the Company’s previously stated intention to divest or spin off its legacy assets in order to focus on its patented platform for RNA delivery; it was unanimously approved by Altamira’s Board of Directors as being in the best interest of shareholders.
In a first step, the Buyer has agreed to acquire
The option may be exercised for 30 days; during this period, Altamira will take certain preparatory steps for the transfer of its four additional inner ear related subsidiaries and their staff to Zilentin. Beyond the 30 days, Zilentin will have a right of first refusal to acquire these companies until December 31, 2022 with the
Upon Zilentin acquiring the full portfolio of Altamira’s inner ear development assets, Altamira will be entitled to receive milestone payments of up to
- the opening of an IND, a successful Phase 3 and regulatory approval for AM-125 in vertigo (
$25 million ) - the regulatory approval of AM-101 in acute inner ear tinnitus (
$10 million ) - the regulatory approval of AM-111 in acute inner ear hearing loss (
$10 million ) - the grant of a license for Altamira’s RNA delivery technology to Zilentin for certain targets in inner ear disorders (
$10 million upfront plus a mid-single digit percentage in royalties on future revenues generated from the sale of drug products making use of the technology)
Within six months, it is planned that Altamira’s CEO, Thomas Meyer, will become the CEO of the Zilentin Group while also continuing to serve as the principal executive of Altamira together with the current RNA leadership team.
“We are excited to take this important first step in the execution of our strategy of becoming a ‘pure play’ RNA delivery technology company,” commented Thomas Meyer, Altamira Therapeutics’ founder, Chairman and CEO. “While there is a high unmet need and great potential for innovative treatments in inner ear disorders, we consider the future development of our programs in this therapeutic area to be better placed with a different type of owner. We are glad to hand them over to a long-term oriented family office that has a strong entrepreneurial spirit and is passionate about developing effective and safe treatments for common health problems like tinnitus, hearing loss and vertigo.”
Apart from divesting its inner ear therapeutics portfolio, Altamira is also actively working towards the divestiture of its other legacy asset, the Bentrio nasal spray, in the OTC consumer health sector. Based on the progress achieved to date in a structured divestiture process, the Company remains confident to meet its objective of completing a Bentrio transaction before year-end.
About Altamira Therapeutics
Altamira Therapeutics (NASDAQ:CYTO) is dedicated to developing therapeutics that address important unmet medical needs. The Company is currently active in three areas: the development of RNA therapeutics for extrahepatic therapeutic targets (OligoPhore™ / SemaPhore™ platforms; preclinical), nasal sprays for protection against airborne allergens and, where approved, viruses (Bentrio™; commercial) or for the treatment of vertigo (AM-125; post Phase 2), and the development of therapeutics for intratympanic treatment of tinnitus or hearing loss (Keyzilen® and Sonsuvi®; Phase 3). Founded in 2003, it is headquartered in Hamilton, Bermuda, with its main operations in Basel, Switzerland. For more information, visit: https://altamiratherapeutics.com/
Forward-Looking Statements
This press release may contain statements that constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements are statements other than historical facts and may include statements that address future operating, financial or business performance or Altamira Therapeutics' strategies or expectations. In some cases, you can identify these statements by forward-looking words such as "may", "might", "will", "should", "expects", "plans", "anticipates", "believes", "estimates", "predicts", "projects", "potential", "outlook" or "continue", or the negative of these terms or other comparable terminology. Forward-looking statements are based on management's current expectations and beliefs and involve significant risks and uncertainties that could cause actual results, developments and business decisions to differ materially from those contemplated by these statements. These risks and uncertainties include, but are not limited to, the closing of the initial sale of
CONTACT
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FAQ
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