XTL Biopharmaceuticals Announces First Half 2008 Financial Results
14 August 2008 - 9:35PM
PR Newswire (US)
VALLEY COTTAGE, N.Y., Aug. 14 /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 first half ended June
30, 2008. At June 30, 2008, the Company had cash, cash equivalents
and short-term bank deposits of $8.3 million, compared to $13.0
million at December 31, 2007. The decrease of $4.7 million during
the six months ended June 30, 2008 was attributable primarily to
operating expenditures associated with the Company's ongoing
Bicifadine clinical program and to the preclinical hepatitis C
program, which was out-licensed to Presidio Pharmaceuticals, Inc.,
or Presidio, at the end of March 2008, offset by the $4.0 million
upfront license payment received from Presidio. The Company's cash,
cash equivalents and short-term bank deposits of $8.3 million at
June 30, 2008 does not reflect the $2 million due to XTL pursuant
to the amendment of the Presidio license that was signed last week.
The loss for the six months ended June 30, 2008 was $7.1 million,
or $0.02 per ordinary share, compared to a loss of $14.6 million,
or $0.07 per ordinary share, for the comparable period last year,
representing a decrease in net loss of $7.5 million. The decreased
loss was primarily attributable to a $4.5 million decrease in
research and development costs and the recognition in the 2008
period of the $4.0 million upfront license fee received from
Presidio. The $4.5 million decrease in research and development
costs was primarily due to the absence in the current period of the
$7.5 million initial license fee for Bicifadine incurred during the
comparable period last year and the absence of $1.3 million in
expenses related to the Company's legacy hepatitis C clinical
programs, offset by a $5.3 million increase in expenses associated
with the ongoing Bicifadine clinical program. For the six months
ended June 30, 2008 and 2007, the Company's losses of $7.1 million
and $14.6 million, respectively, included $1.3 million and $1.0
million, respectively, of non- cash stock option compensation
expense and also included the recognition of a $0.7 million and
$0.6 million charge recorded during the current and comparable
period last year 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.
Commenting on the results, Ron Bentsur, Chief Executive Officer of
XTL, said, "During the first half of 2008, we consummated the
out-licensing of our preclinical hepatitis C program to Presidio
Pharmaceuticals, Inc." Mr. Bentsur added, "In June we completed
patient randomization into our multi-center, double-blind,
placebo-controlled Phase 2b clinical trial with Bicifadine in
diabetic neuropathic pain. We remain focused on completing this
study and expect to announce results in the fourth quarter of
2008." 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 compounds
from our hepatitis C pre-clinical program which was recently
out-licensed to Presidio Pharmaceuticals, Inc., 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,
including Risks Related to Our Financial Condition. 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: Six months ended June 30,
(unaudited) 2008 2007 --------- --------- License Revenues $3,940
$227 Cost of license revenues (with respect to royalties) -- 27
--------- --------- Gross margin 3,940 200 --------- ---------
Research and development costs (includes $7,500 initial upfront
license fee for the six months ended June 30, 2007 and also
includes non-cash stock option compensation of $100 and $66, for
the six months ended June 30, 2008 and 2007, respectively) 7,564
12,118 Less - participations -- 56 --------- --------- 7,564 12,062
General and administrative expenses (includes non-cash stock option
compensation of $1,115 and $892, for the six months ended June 30,
2008 and 2007, respectively) 2,676 2,523 Business development costs
(includes stock appreciation rights compensation of $688 and $565,
and also includes non-cash stock option compensation of $48 and
$11, for the six months ended June 30, 2008 and 2007, respectively)
960 828 ---------- --------- Operating loss 7,260 15,213 Financial
and other income, net 158 351 ---------- --------- Loss before
income taxes 7,102 14,862 Income taxes 13 (213) ----------
--------- Loss for the period $7,115 $14,649 ========== =========
Basic and diluted loss per ordinary share $0.02 $0.07 ==========
========= Weighted average number of shares used in computing basic
and diluted loss per ordinary share 292,732,918 220,145,233
============ ============ Balance Sheet Information: June 30,
December 31, 2008 2007 (unaudited) (audited) ---------- ----------
Assets Current assets: Cash and cash equivalents $3,088 $2,377
Short-term bank deposits 5,200 10,600 Other receivables and prepaid
expenses 857 924 ---------- ---------- Total current assets 9,145
13,901 ---------- ---------- Employee severance pay funds 45 48
Restricted long-term deposits 62 61 Property and equipment - net 83
106 Intangible assets - net -- 11 Other Assets 50 -- ----------
---------- Total assets $9,385 $14,127 ========== ==========
Liabilities and shareholders' equity Current liabilities: Accounts
payable and accrued expenses $4,237 $3,809 Other current
liabilities (stock appreciation rights) 2,248 1,560 ----------
---------- Total current liabilities 6,485 5,369 ----------
---------- Liability in respect of employee severance obligations
155 194 ---------- ---------- Commitments and contingencies Total
liabilities 6,640 5,563 ---------- ---------- Shareholders' equity:
Ordinary shares of NIS 0.02 par value (500,000,000 authorized,
292,805,326 and 292,654,785 issued and outstanding, at June 30,
2008 and December 31, 2007, respectively) 1,445 1,444 Additional
paid in capital 148,277 146,982 Deficit accumulated during the
development stage (146,977) (139,862) ---------- ---------- Total
shareholders' equity 2,745 8,564 ---------- ---------- Total
liabilities and shareholders' equity $9,385 $14,127 ==========
========== 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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