"A major step toward creating value for shareholders," is how XTL Biopharmaceuticals Ltd. (Pink Sheets:XTLB); TASE:XTL) CEO David Grossman describes the deal with Bio Gal Ltd., which was completed today. In effect, XTL merged with Xtepo Ltd., the owner of Bio Gal's intellectual property, in exchange for 69% of XTL shares.
Under the deal, XTL obtained an exclusive license to use Bio Gal's Erythropoietin (EPO) against multiple myeloma, currently incurable hematological cancer of plasma cells. XTL also gets Bio Gal's $1.5 million raised earlier from investors.
Bio Gal was founded ten years ago on the basis of hematological research by its CTO, Prof. Moshe Mittelman, a department manager at Sourasky Medical Center (Ichilov Hospital) in Tel Aviv. He and other researchers discovered that EPO, which is approved as a treatment for anemia, helps suppress multiple myeloma by strengthening the immune system. This helps improve the quality and extend patients' lives. EPO is a hormone produced by the kidneys and is artificially manufactured by genetic engineering.
XTL closed at $0.15 on Wall Street yesterday. The share price rose 5.8% by mid-afternoon on the TASE today to NIS 0.29, giving a market cap of NIS 16 million.
Published by Globes [online], Israel business news - www.globes-online.com - on August 4, 2010
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