Beyond Air, Inc. ( XAIR ) shares are rocketing on Tuesday after the company disclosed a deal with XTL Biopharmaceuticals Ltd. to sell 85% of its subsidiary company, NeuroNOS Ltd.
The consideration includes 19.9% of XTL's issued shares, $1 million in cash, and milestone-based contingent payments of up to $32.5 million.
The transaction remains subject to customary closing conditions, including approval by XTL's shareholders.
This deal will position XTL to become a key player in the growing autism therapeutics market, targeting a critical and underserved global healthcare need.
NeuroNOS was founded by Professor Haitham Amal, a leading autism researcher from Hebrew University and Harvard, whose work on nitric oxide (NO) dysregulation underpins the company's therapeutic approach.
NeuroNOS's proprietary small molecules cross the blood-brain barrier to target NO-related brain disorders, addressing core disease mechanisms rather than just symptoms.
The company holds FDA Orphan Drug Designations for Phelan-McDermid Syndrome and glioblastoma, providing market exclusivity, trial tax credits, and accelerated regulatory pathways.
Post acquisition, NeuroNOS will become XTL's flagship platform for autism and neuro-oncology therapies.
Both Beyond Air ( XAIR ) and XTL are committed to advancing NeuroNOS for the treatment of autism as quickly as possible.
The milestone structure provides up to $5.5 million in clinical development payments to Beyond Air ( XAIR ), covering progress from the Phase 1 trial through FDA NDA submission, and up to $26 million in commercial milestone payments tied to product sales targets.
Steve Lisi, Chairman and CEO of Beyond Air ( XAIR ) said, “This transaction represents a pivotal moment for NeuroNOS, validating the groundbreaking science we’ve been developing and also providing the potential to create meaningful value for our shareholders by enabling NeuroNOS’s pipeline to advance with dedicated focus and funding.”
“We are proud to become significant shareholders in XTL and believe this focused public platform provides NeuroNOS with the resources and commitment needed to advance these critical programs,” he added.
XAIR Price Action: Beyond Air ( XAIR ) shares were up 163.70% at $2.31 at the time of publication on Tuesday, according to Benzinga Pro data.
