The share price of XTL Biopharmaceuticals Ltd. (Nasdaq:XTLB); TASE:XTL) crashed 93% on both the TASE and Nasdaq after the failure of the Phase 2b clinical trial for Bicifadine for the treatment of diabetic neuropathic pain. The company now has no drug in the pipeline and almost no cash.
XTL CEO Ron Bentsur said, "We are all very disappointed with the results of the study. We will devote the next few days to further analyze the data and decide on the appropriate course of action for the Bicifadine program, and for the company."
XTL is now traded at $0.14 on Nasdaq, giving a market cap of just $400,000. It started the day at $2.23. The share fell from NIS 1.06 to NIS 0.07 on the TASE. The company had $8.3 million in cash at the end of June, which it said was enough through early 2009.
XTL was founded in Rehovot in 1993 and aimed at developing a treatment for hepatitis. It went public on the London Stock Exchange and dual-listed on the TASE, reaching a peak in 2005-06 after commercializing its hepatitis B treatment, Hepex-B to Cubist Pharmaceuticals Inc. (Nasdaq: CBST). XTL was about to begin trials for its hepatitis C treatment when it was taken over by Michael Weiss, who had previously made a similar takeover at Keryx Biopharmaceuticals Inc. (Nasdaq: KERX;).
Weiss registered XTL for trading on Nasdaq, raising $28 million at a company value of $130 million, again shortly after carrying out a similar maneuver at Keryx.
Things quickly went sour at XTL. Prices for hepatitis B treatments fell with the introduction of competing drugs, and Cubist abandoned development of the hepatitis C treatment after difficulties with the US Food and Drug Administration (FDA). XTL decided to gamble on Bicifadine, which it acquired from Dov Pharmaceutical Inc. (Bulletin Board: DOVP). XTL sold its remaining rights to its hepatitis drugs to Presidio Pharmaceuticals to finance development of Bicifadine.
The gamble failed.
Published by Globes [online], Israel business news - www.globes-online.com - on November 18, 2008
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