Gediminas Jasionis

XTL Biopharmaceuticals Ltd. (NASDAQ: XTLB) fails and falls

by Gediminas Jasionis November 19, 2008
showbin.gifXTL Biopharmaceuticals Ltd. (NASDAQ: XTLB) stock has fallen hard after the company announced top-line results for clinical trial of Bicifadine, drug for diabetic neuropathic pain treatment. Phase 2b trial was directed to evaluating the efficacy of Bicifadine.

The company had to admit their test drug is ineffective after it failed to pass even primary endpoint. Further the key secondary analysis also showed unfavorable results.

Ron Bentsur, CEO of the company, commented: "We are all very disappointed with the results of the study. We will devote the next few days to further analyze the data and decide on the appropriate course of action for the Bicifadine program, and for the company."

xtlb_chart.png

As the news spread nearly instantly, the previously priced $2.50 stock became a penny stock closing at an all time low of 12 cents per share. The company is far from being in a good financial state and the failure of it leading drug will have adverse effects on their balance sheet.

The company's future is unclear at this point. They will probably concentrate on other research, burn through the remaining cash and hope to develop a medicine that would actually work. In case that fails, there isn't much left for the company but to go bankrupt or merge into a bigger entity.

Reference:

http://www.xtlbio.com/company/company.html

Comments 0

Type the characters that you see in the box (5 characters).