Research & Development
Altamira Therapeutics to sell 51% of Medica subsidiary for USD2.3m
17 November 2023 -

RNA-based therapeutics developer Altamira Therapeutics Ltd (Nasdaq:CYTO) on Friday unveiled plans for a partial spin-off of its subsidiary Altamira Medica AG, in line with a strategic shift towards its core RNA delivery technology.

Altamira has entered into a binding agreement for the sale of a 51% stake in Medica to a Swiss private equity investor. Medica will continue operating under its current name and with current staff in collaboration with Altamira.

Medica's key asset is Bentrio, a drug-free over-the-counter nasal spray used for the treatment of allergic rhinitis, which has been cleared by the FDA and is being commercialised in several markets.

The transaction, valued at CHF2.04m (approximately USD2.3m) in cash, leaves Altamira with a 49% share in Medica and a 25% entitlement to Medica's future licensing income. Additionally, the deal includes the sale of Auris Medical Pty Ltd in Australia and a pro-rata cash contribution of CHF1m to Medica's capital by its two shareholders.

Set to close on 21 November 2023, subject to customary conditions, the transaction is expected to yield a financial gain of around USD5.2m for Altamira under International Financial Reporting Standards (IFRS).