XTL Biopharmaceuticals Announces Financial Results for the Year Ended December 31, 2008
April 06 2009 - 4:15PM
PR Newswire (US)
REHOVOT, Israel, April 6 /PRNewswire-FirstCall/ -- XTL
Biopharmaceuticals Ltd. (NASDAQ:XTLB)(TASE:XTL), a company engaged
in the acquisition, development and commercialization of
therapeutics for the treatment of multiple myeloma and hepatitis C,
announced today its financial results for the year ended December
31, 2008. At December 31, 2008, the Company had cash, cash
equivalents and short-term bank deposits of $2.9 million, compared
to $13.0 million at December 31, 2007. The decrease of $10.1
million during the year ended December 31, 2008 was attributable
primarily to operating expenditures associated with the Company's
Bicifadine clinical program and, to a certain extent, to the
preclinical hepatitis C program, which was out-licensed to Presidio
Pharmaceuticals, Inc., or Presidio, in 2008, offset by the $5.94
million non-refundable license payments received from Presidio. The
loss for the year ended December 31, 2008 was $9.2 million, or
$0.03 per ordinary share, compared to a loss of $24.9 million, or
$0.11 per ordinary share, for the year ended December 31, 2007,
representing a decrease in net loss of $15.7 million. The decreased
loss was primarily attributable to a $7.4 million decrease in
research and development costs, the recognition in the 2008 period
of the $5.94 million non-refundable license fee received from
Presidio and the reversal of $1.6 million in transaction advisory
fees in the form of stock appreciation rights associated with the
in-licensing of Bicifadine in 2008 that was recorded in 2007. The
transaction advisory fee in the form of a SAR is revalued, based on
the then current fair value, at each subsequent reporting date. For
the years ended December 31, 2008 and 2007, the Company's losses of
$9.2 million and $24.9 million, respectively, included $1.9 million
and $1.9 million, respectively, of non-cash stock option
compensation expense. The Company also announced today that in its
Annual Report on Form 20-F for the year ended December 31, 2008,
the Company's independent registered public accounting firm
expresses an unqualified opinion on the December 31, 2008
consolidated financial statements and will include an explanatory
paragraph expressing substantial doubt about the Company's ability
to continue as a going concern. David Grossman, co-Chief Executive
Officer of XTL, commented, "2008 was a disappointing year for XTL
with the failure of the Phase 2b Bicifadine clinical program in
November 2008." Mr. Grossman added, "In March 2009, we announced
the acquisition, subject to certain closing conditions including a
financing, of the rights for recombinant EPO, or rHuEPO, as a
potential treatment for multiple myeloma, a severe and incurable
blood cancer. We are excited about this opportunity and look
forward to embarking on a clinical trial with rHuEPO for the
treatment of multiple myeloma in the near term." ABOUT XTL
BIOPHARMACEUTICALS LTD. XTL Biopharmaceuticals Ltd. ("XTL") is
engaged in the acquisition, development and commercialization of
therapeutics for the treatment of multiple myeloma and hepatitis C.
XTL will be developing rHuEPO for the treatment of multiple
myeloma. XTL is publicly traded on the NASDAQ and Tel-Aviv Stock
Exchanges (NASDAQ:XTLB)(TASE:XTL). Cautionary Statement Some of the
statements included in this press release, particularly those
anticipating future business prospects growth and operating
strategies and similar matters, may be forward-looking statements
that involve a number of risks and uncertainties. For those
statements, we claim the protection of the safe harbor for
forward-looking statements contained in the Private Securities
Litigation Reform Act of 1995. Among the factors that could cause
our actual results to differ materially include: our ability to
maintain our Nasdaq Stock Market listing; our ability to raise
additional capital in order to continue to fund our operations and
the development of our drug candidates; our ability to successfully
close the transaction with Bio-Gal Ltd.; our ability to
successfully find successful merger or in-licensing opportunities;
and other risk factors identified from time to time in our reports
filed with the Securities and Exchange Commission, including our
annual report on Form 20-F filed with the Securities and Exchange
Commission on March 27, 2008. Any forward-looking statements set
forth in this press release speak only as of the date of this press
release. We do not intend to update any of these forward-looking
statements to reflect events or circumstances that occur after the
date hereof. This press release and prior releases are available at
http://www.xtlbio.com/. The information in our website is not
incorporated by reference into this press release and is included
as an inactive textual reference only. XTL Biopharmaceuticals Ltd.
Selected Consolidated Financial Data (Thousands of US Dollars,
Except Share and Per Share Data) Statements of Operations
Information: Year ended December 31, 2008 2007 -----------
----------- (unaudited) License Revenue: 5,940 907 Cost of license
revenues (with respect to royalties) -- 110 ----------- -----------
Gross margin 5,940 797 ----------- ----------- Research and
development costs (includes $7,500 initial upfront license fee in
2007 and also includes non-cash stock option compensation of $78
and $141, in 2008 and 2007, respectively) 11,490 18,998 Less -
participations -- 56 ----------- ----------- 11,490 18,942 General
and administrative expenses (includes non-cash stock option
compensation of $1,735 and $1,784, in 2008 and 2007, respectively)
5,143 5,582 Business development costs (includes stock appreciation
rights compensation (income) of ($1,553) and 1,560 in 2008 and
2007, respectively and also includes non-cash stock option
compensation of $85 and $22, in 2008 and 2007, respectively)
(1,102) 2,008 ----------- ----------- Operating loss 9,591 25,735
Financial and other income, net 314 590 ----------- -----------
Loss before income taxes 9,277 25,145 Income taxes (31) (206)
----------- ----------- Loss for the period 9,246 24,939
=========== =========== Basic and diluted loss per ordinary share
$0.03 $0.11 =========== =========== Weighted average number of
shares used in computing basic and diluted loss per ordinary share
292,769,320 228,492,818 =========== =========== Balance Sheet
Information: December 31, 2008 2007* ----------- -----------
(unaudited) Cash, cash equivalents, and bank deposits 2,924 12,977
Working capital 1,385 8,532 Total assets 3,430 14,127 Accumulated
deficit (149,108) (139,862) Total shareholders' equity 1,426 8,564
Condensed from audited financial statements. DATASOURCE: XTL
Biopharmaceuticals Ltd. CONTACT: David Grossman, co-Chief Executive
Officer of XTL Biopharmaceuticals Ltd., Tel: +972-8-930-4411 Web
Site: http://www.xtlbio.com/
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