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XTL Biopharmaceuticals Signs $108 Million Deal for the Licensing of its Pre-Clinical NS5A Program in Hepatitis C to Presidio Pharmaceuticals
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VALLEY COTTAGE, N.Y., March 20 /PRNewswire-FirstCall/ -- XTL
Biopharmaceuticals Ltd. (Nasdaq: XTLB, TASE: XTL) announced the licensing of
its pre-clinical program in Hepatitis C focused on the NS5A target (the
"Program") to San-Francisco based Presidio Pharmaceuticals, Inc. Presidio is a
private biotechnology company focused on the development and commercialization of anti-viral therapeutics and is backed by some of the most prominent investors in the biotechnology sector, including Panorama Capital, Bay City Capital, Baker Brothers Investments, and Ventures West. Presidio's scientific team is headed by Dr. Richard Colonno, who until recently was Vice President of Infectious Disease Drug Discovery at Bristol-Myers Squibb, where he was responsible for Bristol-Myers Squibb's antiviral drug discovery efforts,
including their Hepatitis C and B and HIV programs.
Under the license agreement, Presidio becomes responsible for all further
development and commercialization activities and costs relating to the
Program. XTL will receive an upfront payment of $4 million, and up to an
additional $104 million upon reaching certain development and
commercialization milestones. In addition, XTL will receive a royalty on
direct product sales by Presidio, and a percentage of Presidio's income if the
Program is sublicensed by Presidio to a third party.
Ram Waisbourd, Vice President of Business Development of XTL, commented:
"We have great confidence in Presidio's ability to move the Program forward
rapidly. We believe that Presidio has a dynamic and experienced management
team, and a solid scientific team headed by Dr. Richard Colonno -- who was a
major contributor to the discovery and advancement of several antiviral drug
candidates into clinical trials, two of which, atazanavir for HIV, and
entecavir for Hepatitis B, are currently approved drugs."
Ron Bentsur, XTL's CEO commented: "We are excited about this licensing
transaction with a motivated and capable partner such as Presidio. 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 Q1
2009, and provides us with a financial cushion as we head towards the
completion and announcement of results from the Bicifadine Phase 2b study,
expected in Q4 2008."
The Program focuses on the development of novel small molecule inhibitors
against the Hepatitis C virus, and is presently in advanced stages of lead
optimization. The current lead compounds target NS5A - a viral protein that is
essential for viral production. NS5A is distinct from the protease and
polymerase. The Program's lead compounds are highly potent inhibitors of viral
replication in the replicon assay, which is known to have good correlation
with clinical efficacy and is currently the leading method for preclinical
testing of inhibitors of the Hepatitis C Virus.
ABOUT XTL BIOPHARMACEUTICALS LTD.
XTL Biopharmaceuticals Ltd. ("XTL") is engaged in the development of
therapeutics for the treatment of diabetic neuropathic pain and HCV. XTL is
developing Bicifadine, a serotonin and norepinephrine reuptake inhibitor, for
the treatment of diabetic neuropathic pain, which is currently in a Phase 2b
study. XTL has out-licensed its novel pre-clinical HCV small molecule
inhibitor program. XTL also has an active in-licensing and acquisition program
designed to identify and acquire additional drug candidates. XTL is publicly
traded on the NASDAQ and Tel-Aviv Stock Exchanges (NASDAQ: XTLB; TASE: XTL).
Contact:
Ron Bentsur, Chief Executive Officer
Tel: +1-(845)-267-0707 ext. 225
ABOUT PRESIDIO
Presidio Pharmaceuticals, Inc. is a specialty pharmaceutical company
focused on the discovery, in-licensing, development and commercialization of
novel therapeutics for viral infections, including HIV and HCV. Presidio has
raised over $27 million in financing from Panorama Capital, Baker Brothers
Investments, Bay City Capital, Ventures West, Nexus Medical Partners, and
Sagamore Bioventures. For more information, please visit our website at
www.presidiopharma.com.
Contact:
Omar K. Haffar, Ph.D.
President and Chief Executive Officer
omar@presidiopharma.com
415-655-7561
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