XTL Biopharmaceuticals Announces Financial Results for the Year Ended December 31, 2007
March 20 2008 - 4:15PM
PR Newswire (US)
VALLEY COTTAGE, N.Y., March 20 /PRNewswire-FirstCall/ -- XTL
Biopharmaceuticals Ltd. (NASDAQ:XTLB)(TASE:XTL), a
biopharmaceutical company engaged in the acquisition and
development of therapeutics for the treatment of unmet medical
needs, particularly diabetic neuropathic pain and hepatitis C,
today announced its financial results for the year ended December
31, 2007. At December 31, 2007, the Company had cash, cash
equivalents and short- term bank deposits of $13.0 million,
compared to $25.2 million at December 31, 2006. The decrease of
$12.2 million during the year ended December 31, 2007 was
attributable primarily to the Company's $7.5 million initial
upfront license payment made in connection with the in-licensing of
Bicifadine, a serotonin and norepinephrine reuptake inhibitor for
the treatment of diabetic neuropathic pain, in January 2007,
operating expenditures associated with the Phase 2b clinical trial
of Bicifadine, the development of the DOS hepatitis C pre-clinical
program, and operating expenditures associated with the Company's
legacy hepatitis C clinical programs that were terminated in 2007,
offset by $8.8 million in net proceeds from the private placement
that was completed in November 2007. The loss for the year ended
December 31, 2007 was $24.9 million, or $0.11 per ordinary share,
compared to a loss of $15.1 million, or $0.08 per ordinary share,
for the year ended December 31, 2006, representing an increase in
net loss of $9.8 million. The increased loss was primarily
attributable to the $7.5 million upfront license fee in connection
with the in-licensing of Bicifadine and additional costs associated
with the Bicifadine clinical program, offset by lower costs
associated with the Company's legacy hepatitis C clinical programs.
The increase in loss was also due to a $1.6 million charge that was
recorded in 2007 relating to the fair-value of stock appreciation
rights granted as a transaction advisory fee to certain third party
intermediaries in connection with the Bicifadine transaction. Also,
for the years ended December 31, 2007 and 2006, the Company's loss
of $24.9 million and $15.1 million, respectively, included $1.9
million and $2.2 million, respectively, of non-cash stock option
compensation expense. Ron Bentsur, Chief Executive Officer of XTL,
commented, "2007 was a pivotal year for XTL. The year began with
the in-licensing of Bicifadine, a member of the SNRI class. In
September, we initiated a multi-center, double- blind,
placebo-controlled Phase 2b clinical trial with Bicifadine in
diabetic neuropathic pain, an indication where the SNRI class has
demonstrated consistent efficacy. We expect to complete and
announce results from this study in the fourth quarter of 2008."
Mr. Bentsur added, "In November 2007, we strengthened our cash
position with the completion of a $9.8 million fund- raising to
institutional investors. We believe that this fund-raising, coupled
with the pending $4.0 million upfront payment from the recently
announced out-licensing transaction of our hepatitis C pre-clinical
program, provides us with sufficient capital well into the first
quarter of 2009." ABOUT XTL BIOPHARMACEUTICALS LTD. XTL
Biopharmaceuticals Ltd. ("XTL") is engaged in the development of
therapeutics for the treatment of diabetic neuropathic pain and
HCV. XTL is developing Bicifadine, a serotonin and norepinephrine
reuptake inhibitor, for the treatment of diabetic neuropathic pain,
which is currently in a Phase 2b study. XTL has out-licensed its
novel pre-clinical HCV small molecule inhibitor program. XTL also
has an active in-licensing and acquisition program designed to
identify and acquire additional drug candidates. XTL is publicly
traded on the NASDAQ and Tel-Aviv Stock Exchanges
(NASDAQ:XTLB)(TASE:XTL). Cautionary Statement Some of the
statements included in this press release, particularly those
anticipating future financial performance, clinical and business
prospects for our clinical compound for neuropathic pain,
Bicifadine, and for our pre- clinical compounds for hepatitis C
from our XTL-DOS program, growth and operating strategies and
similar matters, may be forward-looking statements that involve a
number of risks and uncertainties. For those statements, we claim
the protection of the safe harbor for forward-looking statements
contained in the Private Securities Litigation Reform Act of 1995.
Among the factors that could cause our actual results to differ
materially is our ability to complete in a timely and cost
effective manner clinical trials on Bicifadine, which could
directly impact our ability to continue to fund our operations; our
ability to meet anticipated development timelines for all of our
drug candidates due to recruitment, clinical trial results,
manufacturing capabilities or other factors; the success of our
drug development and marketing arrangements with third parties; and
other risk factors identified from time to time in our reports
filed with the Securities and Exchange Commission, including our
annual report on Form 20-F filed with the Securities and Exchange
Commission on March 23, 2007. Any forward-looking statements set
forth in this press release speak only as of the date of this press
release. We do not intend to update any of these forward-looking
statements to reflect events or circumstances that occur after the
date hereof. This press release and prior releases are available at
http://www.xtlbio.com/ . The information in our website is not
incorporated by reference into this press release and is included
as an inactive textual reference only. XTL Biopharmaceuticals Ltd.
Selected Consolidated Financial Data (Thousands of US Dollars,
Except Share and Per Share Data) Statements of Operations
Information: Year ended December 31, 2007 2006 ------------
------------ (unaudited) Revenues: Reimbursed out-of-pocket
expenses -- -- License 907 454 ------------ ------------ 907 454
Cost of revenues: Reimbursed out-of-pocket expenses -- -- License
(with respect to royalties) 110 54 ------------ ------------ 110 54
Gross margin 797 400 ------------ ------------ Research and
development costs (includes $7,500 initial upfront license fee in
2007 and also includes non-cash stock option compensation of $141
and $173, in 2007 and 2006, respectively) 18,998 10,229 Less -
participations 56 -- ------------ ----------- 18,942 10,229 General
and administrative expenses (includes non-cash stock option
compensation of $1,784 and $1,992, in 2007 and 2006, respectively)
5,582 5,576 Business development costs (includes stock appreciation
rights compensation of $1,560 in 2007 and also includes non-cash
stock option compensation of $22 and $15, in 2007 and 2006,
respectively) 2,008 641 ------------ ------------ Operating loss
25,735 16,046 Financial and other income, net 590 1,141
------------ ------------ Loss before income taxes 25,145 14,905
Income taxes (206) 227 ------------ ------------ Loss for the
period 24,939 15,132 ============ ============ Basic and diluted
loss per ordinary share $0.11 $0.08 ============ ============
Weighted average number of shares used in computing basic and
diluted loss per ordinary share 228,492,818 201,737,295
============ ============ Balance Sheet Information: December 31,
2007 2006* ------------ ------------ (unaudited) Cash, cash
equivalents, and bank deposits 12,977 25,245 Total assets 14,127
26,900 Accumulated deficit (139,862) (114,923) Total shareholders'
equity 8,564 22,760 * Condensed from audited financial statements.
DATASOURCE: XTL Biopharmaceuticals Ltd. CONTACT: Ron Bentsur, Chief
Executive Officer, of XTL Biopharmaceuticals Ltd., +1-845-267-0707,
ext. 225 Web site: http://www.xtlbio.com/
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