XTL Completes Acquisition of Bio-Gal
XTL has announced that their purchase of Bio-Gal was completedsuccessfully. Under the terms of the purchase, XTL has obtained the exclusivelicense for the rights to a use-patent on Erythropoietin for the treatment ofmultiple myeloma patients, against an allocation of approximately 69% of itsshares. Furthermore, XTL obtained US$1.5 million, which was raised fromBio-Gal's shareholders and private investors.
Bio-Gal was established in 2000 for the purpose of developing a drug forthe treatment of blood cancer patients, based on clinical observationsperformed by Prof. Moshe Mittelman, a hematologist of international reputeand director of the Division of Internal Medicine at Ichilov Hospital in TelAviv, Israel. Prof. Mittelman's observations and research, conducted jointlywith researchers from the Weizmann Institute of Science and the Tel AvivUniversity, show that the use of Erythropoietin ("EPO") to treat multiplemyeloma terminal patients is helpful in suppressing the disease by"strengthening" the immune-system function, prolonging survival and inducingimprovement in the quality of life.
EPO is a genetically engineered version of a natural hormone produced bythe kidneys. The drug obtained FDA approval for marketing in the US and inother countries, and has been widely sold for the treatment of severe anemia.
According to the US Multiple Myeloma Research Foundation, MM is thesecond most prevalent type of blood cancer. It is a terminal disease and theoverall survival of patients diagnosed with it varies between 3-5 years.
Mr. Ronen Twito, XTL's CFO, said: "The cash injection enables XTL toproceed to the preparations for a clinical trial without delay," adding"considering the current fluctuations in the financial markets, we regard atransaction integrating technology and cash, with no commitments tosubstantial future payments after completing the trial - a significant andinvaluable achievement."
Mr. David Grossman, XTL's CEO, commented: "We have faith in theconsiderable value contained in the Bio-Gal technology, and feel that theinnovative treatment meets a great human and medical need, for which no curehas yet been discovered. Together with Prof. Mittelman, we shall focus onrealizing the potential offered through the development of EPO, and willproceed with preparations for a clinical trial. We are pleased about thecompletion of the transaction and consider it a significant step ingenerating value for the shareholders."
XTL is engaged in the development of therapeutics to treat diseases forwhich no medical cure has yet been discovered. The Company is focused ondeveloping a drug for the treatment of multiple myeloma and Hepatitis C. TheCompany has acquired Bio-Gal, which developed a unique treatment for multiplemyeloma cancer patients based on EPO, a genetically engineered version of anatural hormone produced by the kidneys. The drug has been approved formarketing by the FDA and has for many years been sold for billions of dollarsacross the world for the treatment of severe anemia. Additionally, theCompany has an agreement with Presidio Pharmaceuticals, Inc., an Americanbiotechnology company, to develop a drug for the treatment of Hepatitis Cbased on the Company's DOS technology. Pursuant to the agreement, XTL isentitled to payments and royalties based on certain milestones and sales.
XTL is a public company traded on the Tel Aviv Stock Exchange (TASE: XTL)and its ADRs are quoted in the US on the Pink Sheets (Pink Sheets: XTLBY).
For further details, please contact: XTL Investor Relations, Tel:+972-9-955-7080 or email: firstname.lastname@example.org- Research and Clinical Observations of MM Terminal Patients by Bio-Gal Suggests That Treatment with Erythropoietin Suppresses the Disease, Prolonging and Improving the Patients' Lives. - XTL is Commencing Preparations to Begin a Phase 2 Clinical Trial in Multiple Myeloma Patients - Under the Transaction, XTL Received $1.5 Million in Cash
SOURCE XTL Biopharmaceuticals Ltd
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