XTL Biopharmaceuticals and Presidio Pharmaceuticals Amend License Agreement for Pre-Clinical Hepatitis C Program XTL to Receive
August 05 2008 - 6:35AM
PR Newswire (US)
VALLEY COTTAGE, N.Y., Aug. 5 /PRNewswire-FirstCall/ -- XTL
Biopharmaceuticals Ltd. (NASDAQ:XTLBNASDAQ:TASE:NASDAQ:XTL)
announced today an amendment to its licensing agreement with
Presidio Pharmaceuticals, Inc. for its pre-clinical program in
Hepatitis C focused on the NS5A target. Under the terms of the
amended license agreement, XTL will receive an additional
non-refundable payment of $2 million in return for a reduction in
future contingent payments. Under the revised agreement, XTL will
now receive up to $59 million upon reaching certain development and
commercialization milestones, a reduced royalty on direct product
sales by Presidio, and a lower percentage of Presidio's income if
the program is sublicensed by Presidio to a third party. Ron
Bentsur, XTL's CEO, commented, "This transaction provides us with
essential, non-dilutive capital as we head towards the completion
and announcement of results from the Bicifadine Phase 2b study,
expected in Q4 2008, while still preserving meaningful potential
economics from our out-licensed pre-clinical Hepatitis C program."
Mr. Bentsur added, "We have the utmost confidence in Presidio's
ability to move this program forward and believe that this
transaction further demonstrates Presidio's commitment to the
program." "Given the progress Presidio has made since licensing
XTL's NS5A program, we are pleased to be able to take this option
to pay down future milestone, royalty, and sublicense income
payments," stated Omar K. Haffar, Ph.D., President and CEO of
Presidio, who added, "We believe this reduction in contingent
payments to XTL may provide us with additional opportunities to
unlock value through partnerships and collaborations potentially
early on in the development process." 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). ABOUT PRESIDIO Presidio
Pharmaceuticals, Inc. is a specialty pharmaceutical company focused
on the discovery, in-licensing, development and commercialization
of novel therapeutics for viral infections, including HIV and HCV.
Presidio has raised over $27 million in financing from Panorama
Capital, Baker Brothers Investments, Bay City Capital, Ventures
West, Nexus Medical Partners, and Sagamore Bioventures LLC. For
more information, please visit our website at
http://www.presidiopharma.com/ . 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 compounds from our pre-clinical hepatitis C
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 27, 2008. 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. DATASOURCE: XTL Biopharmaceuticals Ltd. CONTACT: Ron Bentsur,
Chief Executive Officer of XTL Biopharmaceuticals Ltd.,
+1-845-267-0707 ext. 225; or Omar K. Haffar, Ph.D., President and
Chief Executive Officer of Presidio Pharmaceuticals,
+1-415-655-7561, Web site: http://www.xtlbio.com/
http://www.presidiopharma.com/
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