DOV Pharmaceutical agrees to allow XTL Development to use product candidate bicifadine

By Caroline Salls

Pittsburgh, Jan. 17 - DOV Pharmaceutical, Inc. and XTL Development, Inc. entered into an agreement that allows XTL to develop products using DOV product candidate bicifadine, according to an 8-K filing with the Securities and Exchange Commission.

According to the filing, DOV previously licensed rights to bicifadine from Wyeth to allow DOV to develop products incorporating bicifadine for the treatment of human diseases, disorders and conditions, except for treatment of symptoms in areas of women's health.

Under the XTL agreement, DOV granted XTL the exclusive right to develop products incorporating bicifadine for the treatment of human diseases, disorders and conditions, except for treatment of symptoms in areas of women's health.

In exchange, DOV will receive an upfront payment of $6.5 million, of which $5.0 million will be paid to Wyeth as a result of the acceleration of a milestone payable from DOV to Wyeth under DOV's agreement with Wyeth.

Additionally, XTL will make a $1 million payment to DOV within 30 days if DOV successfully transfers to XTL an existing Investigational New Drug application and some program documentation relating to bicifadine.

Total upfront and milestone payments by XTL under the agreement could exceed $130 million if all milestones are achieved, with escalating low double-digit royalties on annual net sales of bicifadine.

At its election, XTL may make non-royalty payments, including milestone payments, to DOV in shares of freely tradeable stock of XTL's parent company, XTL Biopharmaceuticals Ltd.

XTL will fund future research, development, manufacturing and commercialization costs of bicifadine.

DOV is a biopharmaceutical company based in Somerset, N.J.

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