RAANANA, Israel, Nov. 27, 2017 /PRNewswire/ — XTL Biopharmaceuticals Ltd. (NASDAQ: XTLB, TASE: XTLB.TA) (“XTL” or the “Company”), a clinical-stage biopharmaceutical company developing treatments for autoimmune diseases, today announced financial results for the third quarter ended September 30, 2017.
XTL reported approximately $6,085 thousand in cash and cash equivalents as of September 30, 2017, an increase of $4,066 thousand since December 31, 2016. The Company is expanding its IP portfolio surrounding hCDR1 and has decided to reduce its R&D expenditure in connection with execution of its clinical trials until full funding for the trials or cooperation with a strategic partner is secured. In parallel, the Company will look to identify additional assets to add to XTL’s portfolio.
Research and development expenses for the nine month period ended September 30, 2017 were $47 thousand compared to $390 thousand for the corresponding period in 2016, a decrease of $343 thousand or 88%. During the nine month period ended September 30, 2016, development activities included the completion of the trial design for the planned Phase 2 trial of hCDR1 for the treatment of systemic lupus erythematosus (“SLE”) and production of the drug product for that trial. Such development activities did not repeat during the nine month period ended September 30, 2017.
General and administrative expenses for the nine month period ended September 30, 2017 were $913 thousand compared to $978 thousand for the corresponding period in 2016, a decrease of $65 thousand or 6.6%. The change resulted mainly from reduction in headcount and overhead costs.
Finance income, net for the nine month period ended September 30, 2017 was $181 thousand compared to $28 thousand for the corresponding period in 2016, an increase of $153 thousand or 546%. The difference is driven primarily by issuance costs related to warrants granted to investors in previously disclosed fundraising transactions and revaluation of those warrants amounting to $346 and -$513 thousand, for the nine month period ended September 30, 2017 and 2016, respectively.
XTL reported an operating loss for the nine month period ended September 30, 2017 of $960 thousand or $0.002 per share compared to $1,368 thousand or $0.005 per share for the corresponding period in 2016. The increased total net loss is driven primarily by the costs related to the issuance and revaluation of warrants offset by decreased spending on research and development, as described above.