NEW YORK, August 15 /PRNewswire-FirstCall/ -- XTL Biopharmaceuticals Ltd. , a biotechnology company focused on the acquisition, development and commercialization of pharmaceutical products for the treatment of infectious diseases, particularly the treatment of hepatitis C, today announced its financial results for the six months ended June 30, 2006.
At June 30, 2006, the Company had cash, cash equivalents and short-term bank deposits of $32.2 million, compared to cash, cash equivalents and short-term bank deposits of $13.4 million at December 31, 2005, and $16.6 million at June 30, 2005. The increase of $18.8 million since December 31, 2005 is attributable primarily to the Company’s completion in May of a private placement of $28.0 million in gross proceeds, or $24.4 million in net proceeds. This increase was partially offset by operating expenditures associated with the development and support of our hepatitis C clinical product candidates, XTL-2125 and XTL-6865, as well as to the development of the DOS hepatitis C pre-clinical program.
The loss for the six months ended June 30, 2006 was $7,291,000, or $0.04 per ordinary share, compared to the loss of $4,954,000, or $0.03 per ordinary share, for the six months ended June 30, 2005, representing an increase in net loss of $2,337,000. The increase in loss was primarily attributable to an increase of $1,459,000 in research and development costs and a $932,000 increase in general and administrative expenses. The increase in research and development costs was primarily associated with expenditures related to the DOS program acquired from VivoQuest in September 2005. During the six months ended June 30, 2006, general and administrative expenses included a non-cash compensation charge of $1,105, 000 associated with stock options in accordance with FAS 123R, as compared to a $3,000 non-cash compensation charge for the comparable period last year.
Ron Bentsur, Chief Executive Officer of XTL, commented, ‘During the first half of the year, amidst a very unfavorable biotechnology market, we continued to strengthen the foundation of our company. Patient enrollment into the XTL-2125 and XTL-6865 Phase 1 clinical proof of principle trials is progressing very well and our DOS pre-clinical hepatitis C platform continues to make substantial strides. Moreover, the $28 million capital raise that we completed in May should carry us into 2008 and the additional funds should provide us not only with capital to support our current and planned clinical programs for XTL-2125 and XTL-6865, but also with the ability to build out our pipeline through the in-licensing of additional clinical-stage drug candidates.’ Mr. Bentsur added, ‘The first half of the year proved once again that we are an extremely cash prudent organization that is focused on meeting the milestones that we have set out to achieve. We look forward to an eventful second half of the year as we continue to build long-term shareholder value.’
Contacts: XTL Ron Bentsur, Chief Executive Officer Tel: +1 (212) 531-5960 ABOUT XTL BIOPHARMACEUTICALS LTD.
XTL is engaged in the acquisition, development and commercialization of therapeutics for the treatment of infectious diseases, with a focus on hepatitis C. XTL is developing XTL-2125 - a small molecule, non-nucleoside inhibitor of the hepatitis C virus polymerase - presently in Phase 1 clinical trials in patients with chronic hepatitis C. XTL is also developing XTL-6865 - a combination of two monoclonal antibodies against the hepatitis C virus - presently in Phase 1 clinical trials in patients with chronic hepatitis C. XTL’s hepatitis C pipeline also includes several families of pre-clinical hepatitis C small molecules. XTL is publicly traded on the Nasdaq, London, and Tel-Aviv Stock Exchanges .
Cautionary Statement
Some of the statements included in this press release, particularly those anticipating future financial performance, clinical and business prospects for our clinical compounds for hepatitis C, XTL-2125 and XTL-6865, 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 are the following: our ability to successfully complete cost- effective clinical trials for the drug candidates in our pipeline which would affect our ability to continue to fund our operations with our available cash reserves, our ability to meet anticipated development timelines for the drug candidates in our pipeline due to recruitment, clinical trial results, manufacturing capabilities or other factors; the effect of current conditions in the Middle East on our clinical trials and other operations in that region; and other risk factors identified from time to time in our reports filed with the Securities and Exchange Commission and the London Stock Exchange, including our annual report on Form 20-F filed with the Securities and Exchange Commission on May 25, 2006 . 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.
August 14, 2006 The Board of Directors of XTL Biopharmaceuticals Ltd. Re: Review of unaudited interim consolidated financial statements for the six months ended June 30, 2006
At your request, we have reviewed the interim consolidated balance sheet of XTL Biopharmaceuticals Ltd. (hereafter - the Company) and its subsidiary at June 30, 2006 and the interim consolidated statements of operations, changes in shareholders’ equity and cash flows for the six month period then ended. We have also reviewed the consolidated statements of operations and cash flows for the period from March 9, 1993 (incorporation date) to June 30, 2006 (the amounts included therein, which relate to the period through December 31, 2000, are based on the financial statements for 2000, which were audited by another accounting firm).
Our review was performed in accordance with the procedures prescribed by the Institute of Certified Public Accountants in Israel. Inter-alia, these procedures included: reading the financial statements referred to above, reading the minutes of meetings of shareholders and of the board of directors and its committees and making inquiries of Company officers responsible for financial and accounting matters.
Since our review was limited in scope and did not constitute an audit in accordance with auditing standards generally accepted in Israel and in the United States, we do not express an opinion on the condensed consolidated interim financial statements.
In performing our review, nothing came to our attention that indicated that material adjustments should be made to the interim condensed consolidated financial statements referred to above in order for them to be considered as having been prepared in accordance with the accounting principles generally accepted in the United States.
Sincerely yours, Kesselman & Kesselman Certified Public Accountants (Israel) A Member of PricewaterhouseCoopers International Limited Tel-Aviv, Israel
