(RTTNews) - XTL Biopharmaceuticals Ltd. (XTLB), a biopharmaceutical company, Tuesday announced that it has agreed to acquire 85 percent of NeuroNOS Ltd., a subsidiary of Beyond Air, Inc. (XAIR), a biotechnology company.
The company is expecting this acquisition to position XTL as a major player in the rapidly expanding autism therapeutics market.
According to XTL, Autism Spectrum Disorder now affects approximately 1 in 31 children in the United States and the U.S. Department of Health and Human Services have allocated $50 million in new NIH funding for autism research initiatives.
The transaction involves consideration of 19.9 percent of XTL's issued share capital, $1 million in cash, and milestone-based contingent payments totaling up to $32.5 million.
The milestone structure includes clinical development payments of up to $5.5 million to Beyond Air, commencing from the Phase 1 clinical trial through NDA submission to the FDA. In addition, commercial milestone payments of up to $26 million are payable upon achieving product sales targets, the company said in a statement.
In pre-market activity, XTL shares were trading at $0.71, up 4.83% on the Nasdaq.
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