Beyond Air, Inc. (NASDAQ: XAIR) announced that XTL Biopharmaceuticals Ltd. will acquire an 85% stake in its subsidiary NeuroNOS Ltd. The transaction is structured as a cash‑plus‑milestone deal that could bring up to $32.5 million to Beyond Air, including a $1 million upfront payment, up to $5.5 million in clinical development milestones, and up to $26 million tied to commercial sales milestones.
The deal also leaves Beyond Air with a 19.99% equity interest in XTL, positioning it as a minority shareholder in a company that is expanding its portfolio into autism spectrum disorder and neuro‑oncology. The transaction is a strategic divestiture that frees Beyond Air from a non‑core asset and provides a much‑needed cash infusion at a time when the company has been reporting negative earnings and a high cash burn rate.
Beyond Air’s recent earnings have highlighted the financial pressure that prompted the sale. In Q2 2026 the company posted an EPS of –$1.25 versus a consensus estimate of –$1.10, and revenue of $1.82 million against an estimate of $2.54 million. The shortfall was driven by lower-than‑expected sales in the Beyond Cancer segment and higher operating costs associated with ongoing clinical development. Management cited the sale as a way to sharpen focus on the LungFit nitric‑oxide delivery platform, which has already secured FDA approval for treating persistent pulmonary hypertension of the newborn.
Market reaction to the announcement was swift. Analysts noted that the cash infusion and potential milestone payments could improve Beyond Air’s liquidity and reduce its debt burden, while the divestiture signals a clearer strategic focus on its core respiratory platform. The transaction also positions XTL as a significant player in the autism therapeutics market, leveraging NeuroNOS’s Nobel‑laureate‑led science and orphan drug designations for Phelan‑McDermid syndrome and glioblastoma.
Steve Lisi, Chairman and CEO of Beyond Air, said the deal “provides meaningful value for our shareholders by enabling NeuroNOS’s pipeline to advance with dedicated focus and funding.” Noam Band, CEO of XTL, added that the acquisition “expands XTL’s portfolio into a high‑need area and brings a world‑class scientific team to the company.”
The sale is expected to strengthen Beyond Air’s balance sheet, reduce operating leverage on non‑core assets, and allow the company to invest more heavily in the LungFit platform. For XTL, the acquisition adds a promising pipeline and a strategic foothold in the autism market, potentially accelerating its growth trajectory and broadening its therapeutic portfolio.
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