By: Dylan Sikes - AllPennyStocks.com News

Tuesday, December 6, 2016

The Pharmaceuticals sector is on a rebound as companies expect various sector friendly changes to be announced by the upcoming Trump administration. Companies with strong product pipelines are expected to perform positively in the coming months as these changes unravel. One such company is XTL Biopharmaceuticals which is engaged in developing treatment for Systemic Lupus Erythematosus or SLE. Its other product candidate is for the treatment of different types of anemias. This morning, XTL Biopharmaceuticals Ltd (NASDAQ:XTLB) announced their third quarter results as well as provided operational and clinical updates. The company suffered an operating loss of $300,00 for the quarter ended on September 30, while its operating loss for the corresponding quarter of the last year was $396,000. Its total comprehensive loss for the quarter was reported at $0.001 per share.

The company spent $35,000 for research and development during the quarter, down from $134,000 in the third quarter of the previous year. However, its nine-months expenditure on R&D touched $390,000 as the company augmented its investment in the hCDR1 clinical program and preparations for a Phase 2 clinical trial.

XTL Biopharmaceuticals’ other related expenses included the expenditure on investigation of the use of hCDR1 in autoimmune indications other than SLE. The company is likely to require additional capital for starting the Phase 2 clinical trial in SLE.

The company concluded the quarter with a solid cash position of $2.3 million in cash and cash equivalents. XTL Biopharmaceuticals plans to use the funds for carrying out the hCDR1 clinical program for the treatment of SLE and for investigating its use in other indications. It may also identify additional assets for the treatment of other autoimmune diseases.

XTL Biopharmaceuticals is likely to benefit from various developments which took place in the third quarter. The company received a new patent in Europe titled "Parenteral Formulations of Peptides for the Treatment of Systemic Lupus Erythematosus." The patent is related to non-oral drug formulations of hCDR1 in the treatment of SLE. This patent has further boosted the prospects of hCDR1.

The company has also two new patent applications with the U.S. Patent and Trademark Office to protect doses of hCDR1 at and below 0.5 mg weekly in the treatment of SLE. The company also completed the production representative batches of hCDR1 with BioConnection NV earlier in the year. The Company also reported the completion of the clinical trial design of its Phase 2 study of hCDR1 in the treatment of SLE.

With all that said, the Company’s stock seems to be on a losing trend as the shares of XTLB have lost 10% of its value in the last month. However, with the recent updates related to its development pipeline, shares may look to perk up again in the not too distant future.

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