Why Is Altamira Therapeutics (CYTO) Stock Up 70% Today?

  • Altamira Therapeutics (CYTO) announced it has divested its inner-ear development assets.
  • This is part of Altamira’s plan to focus on RNA delivery.
  • CYTO stock zoomed 70% higher in early session trading as investors applauded this development.
CYTO stock - Why Is Altamira Therapeutics (CYTO) Stock Up 70% Today?

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Apparently, biotechnology firm Altamira Therapeutics (NASDAQ:CYTO) would prefer to concentrate on its RNA delivery business. So, the company is divesting its subsidiary that focuses on inner-ear development. As a result, CYTO stock propelled higher this morning, even gaining 74% at one point.

Generally speaking, Altamira Therapeutics develops therapies to address unmet medical needs. This, until recently, included advancing novel treatments for tinnitus, which is what subsidiary business Zilentin does.

However, Altamira is in the process of slimming down and becoming a single-focus business. By its own admission, Altamira has a “strategy to focus solely on RNA delivery.” Clearly, there’s no room for Zilentin in this strategy.

So, Altamira has decided to sell Zilentin to a currently unspecified European family office. That family office wants to “expand Altamira’s projects in hearing loss, tinnitus, and vertigo” — but that’s none of Altamira’s business now.

What’s Happening With CYTO Stock?

Judging from today’s price action in CYTO stock, it’s evident that financial traders are pleased with Altamira’s decision to sell Zilentin’s assets. Amazingly, the shares gained 65% within the first hour of the trading session.

Is this euphoria just about Altamira’s choice to focus exclusively on RNA delivery? Probably not, as there’s more to the story here. Specifically, Altamira is set to receive to receive an immediate cash payment of $2 million, plus another $25 million upfront payment upon option exercise.

On top of all that, Altamira could potentially earn milestone payments of up to $55 million, plus future royalties. In other words, the Zilentin sale could translate to a sizable financial windfall for Altamira Therapeutics.

Speaking of windfalls, CYTO stock investors are faring well today. This must be a relief, as the shares have lost much of their value in 2022. As Altamira sells its legacy assets for cash and turns its attention to RNA delivery, there may be a turnaround in process — or at least, that’s what investors are undoubtedly hoping for.

On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

David Moadel has provided compelling content – and crossed the occasional line – on behalf of Motley Fool, Crush the Street, Market Realist, TalkMarkets, TipRanks, Benzinga, and (of course) InvestorPlace.com. He also serves as the chief analyst and market researcher for Portfolio Wealth Global and hosts the popular financial YouTube channel Looking at the Markets.

Article printed from InvestorPlace Media, https://investorplace.com/2022/10/why-is-altamira-therapeutics-cyto-stock-up-65-today/.

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