Altamira Therapeutics Ltd experienced a significant uptick in its stock prices on Friday after unveiling a pivotal move in its corporate strategy. The pharmaceutical company announced the signing of a binding agreement to divest a 51% stake in its subsidiary, Altamira Medica AG, to a Swiss private equity investor. This strategic shift is part of Altamira’s broader initiative to reposition itself around its RNA delivery technology.
As the market closed on Thursday, Altamira’s stock was valued at $0.099. However, at the commencement of Friday’s trading session, the stock surged to $0.15. Currently, it is trading at $0.38, boasting a volume of 253.6 million shares, a stark contrast to its daily average of 1.1 million shares.
At the time of this publication, Altamira Therapeutics Ltd stock (CYTO) has witnessed a surge.
Altamira Therapeutics Ltd
Current Price: $0.38
Change : +0.28
Change (%): (279.88%)
Volume: 253.6M
Source: Tomorrow Events Market Data
The centerpiece of Altamira Medica AG’s portfolio is Bentrio, an over-the-counter nasal spray designed to alleviate allergic rhinitis. Cleared by the FDA, Bentrio is currently being commercialized in multiple countries, solidifying its status as a key asset for Medica.
Altamira’s move to sell a 51% stake in Medica comes with a cash consideration of CHF 2.04 million (approximately $2.3 million). The company will, however, retain a 49% share in Medica. Moreover, Altamira stands to benefit from 25% of Medica’s future licensing income.
The transaction also encompasses the sale of Auris Medical Pty Ltd in Melbourne, Australia, and a combined cash contribution of CHF 1 million to Medica’s capital. This contribution will be allocated pro rata based on the existing shareholdings of the two stakeholders following the deal’s closure.
Altamira assures that Medica will continue its operations under its existing name and with its current staff, collaborating closely with Altamira. The company expects to record a substantial financial gain of approximately $5.2 million from this strategic transaction.
Altamira Therapeutics’ founder, Chairman, and CEO, Thomas Meyer, expressed enthusiasm about the company’s strategic repositioning. “This marks an important first step in our strategic repositioning of the Company,” Meyer stated. He added, “We expect major growth from 2024 onwards from existing distribution agreements as well as from the expansion into key markets in North America, Europe, and other world regions.”
Meyer anticipates completing the repositioning process by 2024, transforming Altamira into a focused RNA delivery company. Leveraging their expertise, the company aims to drive innovation and advance cutting-edge solutions in the pharmaceutical industry.
