XTL Biopharmaceuticals Ltd. (Nasdaq: XTLB, LON: XTL) signed an agreement with DOV Pharmaceutical, Inc. (OTC: DOVP) to in-license the worldwide rights for Bicifadine.
Bicifadine is a serotonin and norepinephrine reuptake inhibitor (SNRI) that XTL intends to develop for the treatment of neuropathic pain - a chronic condition resulting from damage to peripheral nerves.
Compared to the currently approved SNRI's, Bicifadine has a unique ratio of serotonin versus norepinephrine reuptake inhibition, which is weighted toward norepinephrine reuptake inhibition, providing a strong scientific rationale for using Bicifadine for the treatment neuropathic pain indications.
Previous clinical trials have shown that Bicifadine is safe and generally well tolerated.
The terms of agreement include:
- XTL will make an up-front payment of $7.5 million in cash. In addition, XTL will make milestone payments of up to $126.5 million, in cash and/or XTL ordinary shares over the life of the license, of which up to $115 million will be due upon or post approval of the product.
- XTL is also obligated to pay royalties on net sales of the product to DOV. In addition, the Company has committed to pay a transaction advisory fee in the form of stock appreciation rights in the amount equivalent to 3% of the Company's current fully diluted ordinary shares, vesting after one year of the close of the transaction, and 7% of the Company's current fully diluted ordinary shares, vesting following successful Phase 3 clinical trial results or the acquisition of XTL.
- Payment of the stock appreciation rights by XTL can be satisfied, at XTL's discretion, in cash and/or by issuance of the Company's ordinary shares.
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