CytoTherapeutics Sets Up Modex In Switzerland

US company CytoTherapeutics Inc has established a subsidiary in Switzerland, Modex Therapeutiques, which it believes to be the first venture capital-backed biotechnology company to be founded in Switzerland.

CTI has a 50% stake in Modex and will license its proprietary encapsulated-cell technology for certain applications outside the central nervous system, and will initially invest $2 million in the firm, with a commitment to making additional investments upon achievement of certain scientific milestones.

When asked why Switzerland was chosen as a base, Modex' scientific cofounder Patrick Aebischer, who is also a scientific founder of CTI and member of the board of directors, told the Marketletter that Switzerland is a good environment for conducting clinical trials and has a good infrastructure with the presence of three major drug companies. He added that it is fairly easy to move people within Europe from Switzerland. CTI's chairman and chief executive, Seth Rudnick, added that there is much interest within Switzerland to build a biotechnology base there.