XTL Biopharmaceuticals could make up to $108 million through a licensing deal with Presidio Pharmaceuticals related to its preclinical program in hepatitis C.
Presidio becomes responsible for all further development and commercialization as well as costs relating to this program. It focuses on small molecules against the NS5A target and is in advanced stages of lead optimization.
XTL will receive an upfront payment of $4 million. The company will only earn the rest upon achievement of certain development and commercialization milestones. XTL will receive a royalty and a percentage of Presidio's income if the program is sublicensed to a third party.
“This transaction allows us to solidify our financial position by bringing in $4 million in cash and eliminating the ongoing development expense of the program, while preserving a significant share in the program's future success,” says Ron Bentsur, XTL's CEO. “We believe that this transaction extends our financial resources well into Q1 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 Q4 2008.”
XTL is developing bicifadine, a serotonin and norepinephrine reuptake inhibitor, for the treatment of diabetic neuropathic pain.