XTL Biopharmaceuticals Ltd. (Pink Sheets:XTLBY); TASE:XTL) announced today that it will acquire Kitov Pharmaceuticals Ltd.. The Herzliya based biopharmaceutical development company could pay up to $48 million for Kitov through shares and cash milestone payments.
Kitov Pharmaceuticals develops combination drug products, focusing on the treatment of hypertension and pain induced by osteoarthritis with its lead drug product, which is now ready to begin a Phase III clinical trial under a US Food and Drug Adminidstration (FDA) Special Protocol Assessment (SPA).
Kitov was founded by former BiolineRX Ltd. (Nasdaq: BLRX); TASE:BLRX) CEO Dr. Morris Laster and senior US pharmaceutical industry figures including Dr. Paul Waymack.
XTL has undertaken to implement a Phase III trial development plan for Kitov's lead drug. According to this undertaking, the company will invest up to $1.5 million in financing the sole planned pivotal trial, which will be conducted over an 18-month period. Kitov estimates it will require an accumulative investment of $9 million for the development of its lead drug and through its approval for marketing.
On completion of the deal, Dr. Waymack will join the board of directors of XTL as chairman and president. He will be responsible for the clinical and regulatory development of all of XTL's products. Dr. Waymack is the founder of Kitov and has many years of experience in drug development, including interacting with the FDA. Kitov will have the right to appoint an additional director to XTL's board.
XTL CEO David Grossman said, "We are happy to acquire Kitov with its late stage drugs. Kitov and its experienced team bring a high level of development capabilities, especially Dr. Paul Waymack, who previously worked for the FDA and has been developing drugs for many years."
XTL's deputy CEO and CFO Ronen Twito said, "The structure of the transaction, by which XTL makes a down payment in shares, plus additional shares or payments upon meeting milestones throughout the development, creates common business interest with Kitov shareholders, which enables putting the financial and business efforts for the benefit of the products development and success of XTL."
Published by Globes [online], Israel business news - www.globes-online.com - on June 19, 2012
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