XTL Completes Acquisition of Bio-Gal
Bio-Gal is Developing a Drug for the Treatment of Multiple Myeloma ("MM") Patients
- Research and Clinical Observations of MM Terminal Patients by Bio-Gal Suggests That Treatment with Erythropoietin Suppresses the Disease, Prolonging and Improving the Patients' Lives. - XTL is Commencing Preparations to Begin a Phase 2 Clinical Trial in Multiple Myeloma Patients - Under the Transaction, XTL Received $1.5 Million in Cash
XTL has announced that their purchase of Bio-Gal was completed successfully. Under the terms of the purchase, XTL has obtained the exclusive license for the rights to a use-patent on Erythropoietin for the treatment of multiple myeloma patients, against an allocation of approximately 69% of its shares. Furthermore, XTL obtained US$1.5 million, which was raised from Bio-Gal's shareholders and private investors.
Bio-Gal was established in 2000 for the purpose of developing a drug for the treatment of blood cancer patients, based on clinical observations performed by Prof. Moshe Mittelman, a hematologist of international repute and director of the Division of Internal Medicine at Ichilov Hospital in Tel Aviv, Israel. Prof. Mittelman's observations and research, conducted jointly with researchers from the Weizmann Institute of Science and the Tel Aviv University, show that the use of Erythropoietin ("EPO") to treat multiple myeloma terminal patients is helpful in suppressing the disease by "strengthening" the immune-system function, prolonging survival and inducing improvement in the quality of life.
EPO is a genetically engineered version of a natural hormone produced by the kidneys. The drug obtained FDA approval for marketing in the US and in other countries, and has been widely sold for the treatment of severe anemia.
According to the US Multiple Myeloma Research Foundation, MM is the second most prevalent type of blood cancer. It is a terminal disease and the overall survival of patients diagnosed with it varies between 3-5 years.
Mr. Ronen Twito, XTL's CFO, said: "The cash injection enables XTL to proceed to the preparations for a clinical trial without delay," adding "considering the current fluctuations in the financial markets, we regard a transaction integrating technology and cash, with no commitments to substantial future payments after completing the trial - a significant and invaluable achievement."
Mr. David Grossman, XTL's CEO, commented: "We have faith in the considerable value contained in the Bio-Gal technology, and feel that the innovative treatment meets a great human and medical need, for which no cure has yet been discovered. Together with Prof. Mittelman, we shall focus on realizing the potential offered through the development of EPO, and will proceed with preparations for a clinical trial. We are pleased about the completion of the transaction and consider it a significant step in generating value for the shareholders."
XTL is engaged in the development of therapeutics to treat diseases for which no medical cure has yet been discovered. The Company is focused on developing a drug for the treatment of multiple myeloma and Hepatitis C. The Company has acquired Bio-Gal, which developed a unique treatment for multiple myeloma cancer patients based on EPO, a genetically engineered version of a natural hormone produced by the kidneys. The drug has been approved for marketing by the FDA and has for many years been sold for billions of dollars across the world for the treatment of severe anemia. Additionally, the Company has an agreement with Presidio Pharmaceuticals, Inc., an American biotechnology company, to develop a drug for the treatment of Hepatitis C based on the Company's DOS technology. Pursuant to the agreement, XTL is entitled to payments and royalties based on certain milestones and sales.
XTL is a public company traded on the Tel Aviv Stock Exchange (TASE: XTL) and its ADRs are quoted in the US on the Pink Sheets (Pink Sheets: XTLBY).
For further details, please contact: XTL Investor Relations, Tel: +972-9-955-7080 or email: email@example.com
SOURCE XTL Biopharmaceuticals Ltd