XTL will get $4 million upfront and up to $104 million on meeting milestones from Presidio Pharmaceuticals.
XTL Biopharmaceuticals Ltd. (Nasdaq:XTLB); TASE:XTL) has licensed it pre-clinical program in hepatitis C focused on the NS5A target to Presidio Pharmaceuticals Inc. Presidio will take over all further development and commercialization activities and costs relating to the hepatitis C program. XTL will receive an upfront payment of $4 million, and up to an additional $104 million upon reaching certain development and commercialization milestones. XTL will also receive royalties on direct product sales by Presidio, and a percentage of Presidio’s income if Presidio sub-licenses the hepatitis C program to a third party.
The San-Francisco based Presidio is a private biotechnology that develops and commercializes of anti-viral therapeutics and is headed by CEO Dr. Richard Colonno. Its investors include Panorama Capital, Bay City Capital, Baker Brothers Investments, and Ventures West.
XTL CEO Ron Bentsur said, “This transaction allows us to solidify our financial position by bringing in $4 million dollars in cash and eliminating the ongoing development expense of the program, while preserving a significant share in the program’s future success. We believe that this transaction extends our financial resources well into the first quarter of 2009, and provides us with a financial cushion as we head towards the completion and announcement of results from the Bicifadine Phase IIb study, expected in the fourth quarter of 2008.”
Published by Globes [online], Israel business news - www.globes-online.com - on March 23, 2008
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