Cytos Biotechnology Ltd (SIX:CYTN) today announced that Novartis will discontinue the NIC002 project, which is a therapeutic vaccine candidate for the treatment of nicotine addiction. Already communicated in October 2009 were results from a Phase 2 study with NIC002 conducted by Novartis that showed formation of nicotine-specific antibodies in patients but did not meet its primary endpoint of increased smoking cessation. As a result of the discontinuation, Novartis will terminate the licence granted in 2007 and will return to Cytos the licensed rights pursuant to the provisions of the licence agreement.
A second collaboration with Novartis on CAD106 in development for the treatment of patients with Alzheimer's Disease is not affected by this decision.
The termination of the NIC002 project has no impact on Cytos' financial and program guidance.