XAIR Stock More Than Doubled Today — What’s Driving The Rally?

• XTL will acquire NeuroNOS for 19.9% of its issued share capital, $1 million in cash, and milestone-based contingent payments totaling up to $32.5 million.  
• NeuroNOS is a biotechnology company eyeing the development of therapeutics for Autism Spectrum Disorder (ASD) and other neurodevelopmental and neurodegenerative disorders. 
• NeuroNOS will now serve as XTL's platform for autism and neuro-oncology therapeutics.

Shares of Beyond Air, Inc. (XAIR) rallied 149% on Tuesday after XTL Biopharmaceuticals Ltd. (XTLB) announced a deal to acquire a majority stake in its subsidiary NeuroNOS Ltd.

Under the deal, IP portfolio company XTL will acquire 85% of NeuroNOS, a biotechnology company eyeing the development of therapeutics for Autism Spectrum Disorder (ASD), and other neurodevelopmental and neurodegenerative disorders.

Shares of XTLB gained 51% at the time of writing.

Deal Terms

As part of the deal, XTL will acquire 85% of NeuroNOS for 19.9% of XTL's issued share capital, $1 million in cash, and milestone-based contingent payments totaling up to $32.5 million.

XTL noted that NeuroNOS's drug development platform is designed to address the underlying molecular mechanisms driving autism unlike treatments based on behavioral symptoms. NeuroNOS will now serve as XTL's platform for autism and neuro-oncology therapeutics.

According to BeyondAir, autism spectrum disorder affects about one in 31 children in the U.S. and has been rising dramatically. No FDA-approved therapies aimed at disease modification exist for the disorder at present.

The company also noted that the Trump administration has, in recent times, emphasized support for new medicines aimed at treating autism.

“The administration has allocated $50 million in new NIH funding for autism research initiatives. This recognition at the federal level signals a fundamental shift in regulatory priorities and resource allocation toward autism research and treatment development,” BeyondAir said in a statement.

How Did Stocktwits Users React?

On Stocktwits, retail sentiment around XAIR and XTLB rose from ‘bullish’ to ‘extremely bullish’ territory over the past 24 hours, while message volume increased from ‘high’ to ‘extremely high’ levels.

A Stocktwits user applauded the deal, opining that selling most of the unit will help de-risk Beyond Air’s investment while also creating potential future revenue streams.

XAIR stock has fallen 70% this year while XTLB dropped 44% in the same period.

Read More: Travere Therapeutics Stock Slumps After FDA Extends Drug Review Timeline To April: Retail Is Divided On Eventual Approval

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