Beyond Air (XAIR) Stock Soars as Company Sells Autism Drug Platform for $32.5 Million

TLDR

• Beyond Air shares surged 150% after XTL Biopharmaceuticals agreed to acquire 85% of its NeuroNOS subsidiary for up to $32.5 million
• Deal structure includes 19.9% of XTL’s equity, $1 million cash, and milestone payments totaling $31.5 million
• NeuroNOS focuses on small molecule drugs targeting nitric oxide dysregulation in autism and brain cancer
• Two FDA Orphan Drug Designations already secured for Phelan-McDermid Syndrome and Glioblastoma treatments
• Trading volume hit 28 million shares versus 6.04 million average as XTL stock also climbed 15.87%

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Beyond Air stock exploded higher on Tuesday following news that XTL Biopharmaceuticals reached an agreement to acquire 85% of NeuroNOS. The biotechnology subsidiary develops treatments for Autism Spectrum Disorder and neuro-oncology.

Beyond Air, Inc., XAIR

The deal values NeuroNOS at up to $32.5 million through a combination of equity, cash, and performance-based payments. XTL will transfer 19.9% of its issued share capital to Beyond Air plus $1 million in immediate cash consideration.

Milestone payments make up the bulk of the transaction value. Clinical development milestones total $5.5 million, payable from Phase 1 trials through FDA submission. Commercial milestones add another $26 million tied to sales performance targets.

Beyond Air shares closed up 150% on Tuesday after gaining 27.85% in pre-market hours. The stock had dropped slightly on Monday before this week’s announcement. XTL Biopharmaceuticals stock rose 15.87% on the same news.

Heavy Trading Activity Follows Deal

Trading volume exploded to 28 million shares on Tuesday. That compares to a three-month daily average of just 6.04 million shares. The 363% increase in volume reflects intense investor interest in the transaction.

NeuroNOS develops proprietary small molecules designed to cross the blood-brain barrier. These compounds target nitric oxide abnormalities linked to both autism and brain cancer. Preclinical data shows the platform addresses root disease mechanisms instead of just managing symptoms.

Approximately one in 31 U.S. children now have Autism Spectrum Disorder diagnoses. This represents a sharp increase that has drawn government attention. No FDA-approved treatments currently exist for the core neurobiological causes of the condition.

FDA Orphan Drug Status Provides Advantages

NeuroNOS has received two FDA Orphan Drug Designations. One covers Phelan-McDermid Syndrome, a rare genetic disorder strongly associated with autism. The second designation applies to Glioblastma, an aggressive brain cancer with poor survival rates.

These designations deliver several valuable benefits. Market exclusivity lasts seven years after approval. Tax credits apply to clinical trial expenses. Companies receive expedited regulatory review and increased FDA collaboration throughout development.

Validated research confirms nitric oxide dysregulation appears in both autism patients and brain cancer patients. This makes nitric oxide a promising therapeutic target across multiple disease areas.

Both companies expressed commitment to advancing the NeuroNOS autism treatment program quickly. NeuroNOS will become XTL’s primary platform for developing autism and neuro-oncology therapies going forward.

Beyond Air retains 15% ownership in NeuroNOS after the transaction closes. The company receives immediate cash while maintaining upside exposure through milestone payments and minority ownership. Year-to-date, Beyond Air shares had gained 20.66% before Tuesday’s surge, though the stock remains down 87.83% over the past twelve months.

The acquisition gives XTL control of a clinical-stage asset with FDA Orphan Drug status and a novel mechanism targeting unmet medical needs in autism and brain cancer treatment.

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