VALLEY COTTAGE, N.Y., March 20 XTLBiopharmaceuticals Ltd. (Nasdaq: XTLB; TASE: XTL), a biopharmaceutical companyengaged in the acquisition and development of therapeutics for the treatmentof unmet medical needs, particularly diabetic neuropathic pain and hepatitisC, 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, 2007was attributable primarily to the Company's $7.5 million initial upfrontlicense payment made in connection with the in-licensing of Bicifadine, aserotonin and norepinephrine reuptake inhibitor for the treatment of diabeticneuropathic pain, in January 2007, operating expenditures associated with thePhase 2b clinical trial of Bicifadine, the development of the DOS hepatitis Cpre-clinical program, and operating expenditures associated with the Company'slegacy hepatitis C clinical programs that were terminated in 2007, offset by$8.8 million in net proceeds from the private placement that was completed inNovember 2007.
The loss for the year ended December 31, 2007 was $24.9 million, or $0.11per ordinary share, compared to a loss of $15.1 million, or $0.08 per ordinaryshare, for the year ended December 31, 2006, representing an increase in netloss of $9.8 million. The increased loss was primarily attributable to the$7.5 million upfront license fee in connection with the in-licensing ofBicifadine and additional costs associated with the Bicifadine clinicalprogram, offset by lower costs associated with the Company's legacy hepatitisC clinical programs. The increase in loss was also due to a $1.6 millioncharge that was recorded in 2007 relating to the fair-value of stockappreciation rights granted as a transaction advisory fee to certain thirdparty intermediaries in connection with the Bicifadine transaction. Also, forthe years ended December 31, 2007 and 2006, the Company's loss of $24.9million and $15.1 million, respectively, included $1.9 million and $2.2million, respectively, of non-cash stock option compensation expense.
Ron Bentsur, Chief Executive Officer of XTL, commented, "2007 was apivotal year for XTL. The year began with the in-licensing of Bicifadine, amember of the SNRI class. In September, we initiated a multi-center, double-blind, placebo-controlled Phase 2b clinical trial with Bicifadine in diabeticneuropathic pain, an indication where the SNRI class has demonstratedconsistent efficacy. We expect to complete and announce results from thisstudy 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 recentlyannounced 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 oftherapeutics for the treatment of diabetic neuropathic pain and HCV. XTL isdeveloping Bicifadine, a serotonin and norepinephrine reuptake inhibitor, forthe treatment of diabetic neuropathic pain, which is currently in a Phase 2bstudy. XTL has out-licensed its novel pre-clinical HCV small moleculeinhibitor program. XTL also has an active in-licensing and acquisitionprogram designed to identify and acquire additional drug candidates. XTL ispublicly traded on the NASDAQ and Tel-Aviv Stock Exchanges(Nasdaq: XTLB; TASE: XTL).
Some of the statements included in this press release, particularly thoseanticipating future financial performance, clinical and busine