XTL Biopharmaceuticals Ltd. (Nasdaq: XTLB; LSE: XTL; TASE: XTL) has reported a loss of $7.3 million, or $0.04 per share, for the first six months of 2006, compared with $5 million, or $0.03 per share, for the first six months of 2005.
XTL said the higher loss was primarily attributable to an increase of $1.5 million in research and development costs and a $932,000 increase in general and administrative expenses. The greater research and development expenditure was mainly on the DOS program acquired from VivoQuest in September 2005.
In the first half of 2006, general and administrative expenses included a non-cash compensation charge of $1.1 million associated with stock options in accordance with FAS 123R, compared with a $3,000 non-cash compensation charge for the comparable period last year.
At the end of June 2006, the company had cash, cash equivalents and short-term bank deposits of $32.2 million, compared with $13.4 million at the end of December 2005.
XTL CEO Ron Bentsur said, "During the first half of the year, amidst a very unfavorable biotechnology market, we continued to strengthen the foundation of our company.
"Patient enrollment into the XTL-2125 and XTL-6865 Phase 1 clinical proof of principle trials is progressing very well and our DOS pre-clinical hepatitis C platform continues to make substantial strides. Moreover, the $28 million capital raise that we completed in May should carry us into 2008 and the additional funds should provide us not only with capital to support our current and planned clinical programs for XTL-2125 and XTL-6865, but also with the ability to build out our pipeline through the in-licensing of additional clinical-stage drug candidates."
XTL focuses on the acquisition, development, and commercialization of pharmaceutical products for the treatment of infectious diseases, particularly the treatment of hepatitis C.
XTL shares closed at $3.23 on Nasdaq yesterday, giving the company a market cap of $56 million.
Published by Globes [online], Israel business news - www.globes.co.il - on August 15, 2006
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