XTL Biopharmaceuticals Ltd. (NASDAQ: XTLB) is an Israeli biotech player that most traders have not heard of. By the looks of the trading today, it doesn’t look like shareholders will get to hear about it for too much longer either. The company stumbled on a Phase II test, and that may be all she wrote.
The company has announced that the top-line results from its BicifadinePhase IIb clinical trial to treat diabetic neuropathic pain.
The primary objective was to compare the efficacy of two doses ofBicifadine against placebo in reducing pain associated with diabeticneuropathy. The primary endpoint was the reduction in pain score duringthe course of treatment.
The company announced that the study failed to meet its primary endpoint. The trial also failed to meet key secondary analysis. This one sounds just like Carlito’s Way:"Here Comes The Pain!"
The company is spending the next few days to further analyze the dataand decide on the appropriate course of action for the Bicifadineprogram…. for the company.
In only 15 minutes of normal trading and with the pre-market tradingvolume, there has been over 12 million shares trading hands. This oneis perhaps the ugliest of all biotech implosions. Shares are down 93%at $0.14. Its prior 52-week trading range was $1.58 to $4.96. This stock has only about 29 million shares outstanding, so many of the people trading this stock this morning will have a higher value than the market cap of this one.
Welcome to the land of biotech zombies.
Jon C. Ogg
November 18, 2008