Beyond Air, Inc., trading on NASDAQ under the ticker XAIR, announced a significant transaction on Tuesday that has markedly affected its stock price. The company revealed it has entered an agreement to transfer 85% ownership of its subsidiary dedicated to autism therapeutics, NeuroNOS Ltd., to XTL Biopharmaceuticals Ltd., listed on NASDAQ as XTLB. In exchange, Beyond Air will receive a combination of equity and cash compensation, including nearly 20% ownership in XTL, $1 million in cash, and milestone-triggered future payments potentially totaling $32.5 million.
This strategic divestiture places NeuroNOS within XTL's corporate portfolio, positioning the latter to become a key participant in the emerging therapeutic sector focused on autism, a domain with considerable unmet clinical needs worldwide. The deal, however, remains subject to conventional closing protocols such as the approval by shareholders of XTL.
NeuroNOS was established by Professor Haitham Amal, who brings a strong research background from Hebrew University and Harvard, focusing on nitric oxide (NO) dysfunction implicated in autism spectrum disorders. The company's core approach centers on small molecule therapeutics capable of crossing the blood-brain barrier to directly address NO-related brain pathologies – a mechanism-based strategy targeting foundational disease processes rather than mere symptom management.
Beyond its innovative platform, NeuroNOS benefits from regulatory incentives granted by the U.S. Food and Drug Administration through orphan drug designations for Phelan-McDermid Syndrome, a rare genetic condition associated with autism, and glioblastoma, an aggressive brain cancer. These designations confer exclusivity in the market, eligibility for clinical trial tax credits, and eligibility for an expedited regulatory review pathway.
Upon completion of the acquisition, NeuroNOS will become XTL's flagship area of focus for new therapeutic development in both autism and neuro-oncology indications. Both companies have expressed a shared commitment to accelerating the clinical development of NeuroNOS candidates targeting autism disorders.
The financial terms include a clearly structured milestone framework: Beyond Air will receive up to $5.5 million linked to clinical development achievements—from successful progression through Phase 1 clinical trials up to the submission of a New Drug Application to FDA. Furthermore, there are contingent commercial milestone payments up to $26 million tied to achieving specific product sales targets.
Steve Lisi, Beyond Air’s Chairman and CEO, described the transaction as a transformative milestone for NeuroNOS. He noted that this move validates the pioneering scientific foundation underpinning NeuroNOS’s therapeutic approaches and potentially generates substantial value for Beyond Air’s shareholders by enabling a focused advancement of the NeuroNOS pipeline, backed by dedicated resources and funding.
Lisi further emphasized the value of becoming a significant equity holder in XTL, which, as a specialized public company, can provide the sustained commitment and capabilities necessary to drive these critical drug development programs forward.
The market reacted strongly on Tuesday, with Beyond Air shares surging by over 163%, reaching $2.31 at the time of reporting, according to Benzinga Pro data. Meanwhile, XTL Biopharmaceuticals shares also gained approximately 64%, trading at $1.12.
Both companies now focus on leveraging the scientific potential and regulatory advantages of NeuroNOS’s orphan drug candidates to meet urgent needs in autism spectrum therapeutics and neuro-oncology, with the transaction marking a notable step in the biotechnology sector’s efforts to address these challenging and underserved indications.
This strategic divestiture places NeuroNOS within XTL's corporate portfolio, positioning the latter to become a key participant in the emerging therapeutic sector focused on autism, a domain with considerable unmet clinical needs worldwide. The deal, however, remains subject to conventional closing protocols such as the approval by shareholders of XTL.
NeuroNOS was established by Professor Haitham Amal, who brings a strong research background from Hebrew University and Harvard, focusing on nitric oxide (NO) dysfunction implicated in autism spectrum disorders. The company's core approach centers on small molecule therapeutics capable of crossing the blood-brain barrier to directly address NO-related brain pathologies – a mechanism-based strategy targeting foundational disease processes rather than mere symptom management.
Beyond its innovative platform, NeuroNOS benefits from regulatory incentives granted by the U.S. Food and Drug Administration through orphan drug designations for Phelan-McDermid Syndrome, a rare genetic condition associated with autism, and glioblastoma, an aggressive brain cancer. These designations confer exclusivity in the market, eligibility for clinical trial tax credits, and eligibility for an expedited regulatory review pathway.
Upon completion of the acquisition, NeuroNOS will become XTL's flagship area of focus for new therapeutic development in both autism and neuro-oncology indications. Both companies have expressed a shared commitment to accelerating the clinical development of NeuroNOS candidates targeting autism disorders.
The financial terms include a clearly structured milestone framework: Beyond Air will receive up to $5.5 million linked to clinical development achievements—from successful progression through Phase 1 clinical trials up to the submission of a New Drug Application to FDA. Furthermore, there are contingent commercial milestone payments up to $26 million tied to achieving specific product sales targets.
Steve Lisi, Beyond Air’s Chairman and CEO, described the transaction as a transformative milestone for NeuroNOS. He noted that this move validates the pioneering scientific foundation underpinning NeuroNOS’s therapeutic approaches and potentially generates substantial value for Beyond Air’s shareholders by enabling a focused advancement of the NeuroNOS pipeline, backed by dedicated resources and funding.
Lisi further emphasized the value of becoming a significant equity holder in XTL, which, as a specialized public company, can provide the sustained commitment and capabilities necessary to drive these critical drug development programs forward.
The market reacted strongly on Tuesday, with Beyond Air shares surging by over 163%, reaching $2.31 at the time of reporting, according to Benzinga Pro data. Meanwhile, XTL Biopharmaceuticals shares also gained approximately 64%, trading at $1.12.
Both companies now focus on leveraging the scientific potential and regulatory advantages of NeuroNOS’s orphan drug candidates to meet urgent needs in autism spectrum therapeutics and neuro-oncology, with the transaction marking a notable step in the biotechnology sector’s efforts to address these challenging and underserved indications.