Cyteir Announces Halt of CYT-0851 Development and Company Dissolution
Biotech firm Cyteir Therapeutics, Inc. (NASDAQ: CYT) announced today its decision to terminate all development activities related to CYT-0851, its investigational monocarboxylate transporter inhibitor. Following a strategic review, the Cyteir’s Board of Directors has deemed it in the best interest of shareholders to dissolve the company. This course of action involves an orderly wind-down of operations, liquidation of assets, and distribution of remaining cash to shareholders.
Phase 1 Study Results and Decision Factors
CYT-0851, tested in a Phase 1 combination study with capecitabine or gemcitabine for advanced ovarian cancer and other solid tumors, demonstrated durable responses but failed to meet Cyteir’s criteria for further clinical development. Given the high costs associated with identifying predictive biomarkers for potential beneficiaries of CYT-0851 treatment and the present financial and regulatory conditions, Cyteir found the continuation of CYT-0851 development to be unfeasible. The Company will still administer treatments to patients presently enrolled in the ongoing Phase 1 study until the dissolution takes effect.
Liquidation and Dissolution Plan
Cyteir’s Board of Directors will approve a Plan of Liquidation and Dissolution, given shareholder consent, that includes distributing remaining cash to shareholders after an orderly wind-down of the company’s operations. This plan includes the potential sale of its assets and the completion of all regulatory and patient obligations connected to the ongoing clinical trial. Cyteir will seek advisory services from independent consultants proficient in company dissolutions and liquidations.
A special shareholder meeting will be held in the latter half of 2023 to vote on the Plan of Dissolution. Shareholders will receive an estimate of potential distributions from Cyteir, though actual amounts may significantly differ due to various factors.
Termination of Cyteir Stock Trading
Once the certificate of dissolution is filed, trading of Cyteir’s common stock will cease, its stock transfer books will close, and transfers of its capital stock will no longer be recorded. The company will establish a reserve to pay for all expenses, obligations, and liabilities, with an expectation that its existing capital resources and anticipated net proceeds from the sale of certain assets will suffice to meet these costs.
Cyteir does not intend to make further comments on the planned liquidation and dissolution until a proxy statement related to the special meeting is filed with the SEC.
CYT: Market Response
Despite the news of a dissolution, shares of Cyteir are rallying 37.50% through early trading on June 30, 2023. Over the past three months, Cyteir shares have seen average daily volume of 41,870 shares. However, volume of 7.58 million shares or dollar volume of around $20.01 million, has already exchanged hands through early trading. On a year-to-date basis, Cyteir shares have returned nearly 62% through the first half of 2023.
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