XTL Biopharma to acquire Kitov Pharmaceuticals

Israeli biopharma firm XTL Biopharmaceuticals (TASE:XTL) says it will acquire fellow Israel-based Kitov Pharmaceuticals in a share and cash milestone payments deal worth up to $48 million.

Kitov, which researches and develops combination drug products, has focused on the treatment of hypertension and pain induced by osteoarthritis with its lead drug product, which is now ready to begin a Phase III clinical trial under a Food and Drug Administration Special Protocol Assessment (SPA).

Under the terms of the accord, XTL will allocate shares and warrants to Kitov shareholders representing 19.9% of the company's issued and outstanding share capital upon such allocations. In addition, XTL will make cash milestone payments throughout the development and business progress, which may add up to $48 million. XTL may pay such payment by issuing its shares representing up to 26.4% of XTL issued and outstanding share capital post the transaction.