XLT Biopharmaceuticals Makes Bold Entry Into Autism Market With NeuroNOS Acquisition; Shares Surge 160%

The biotech sector is witnessing a significant shift as XLT Biopharmaceuticals Ltd. (XTLB) moves to acquire an 85% stake in NeuroNOS Ltd., a breakthrough therapeutic platform currently under Beyond Air Inc. (XAIR). This strategic transaction signals growing momentum in addressing one of modern medicine’s most pressing challenges: autism spectrum disorder treatment innovation.

The Clinical Opportunity

Autism now impacts approximately 1 in 31 children across the United States—a prevalence that has made the condition a national health priority. Despite this staggering incidence, the therapeutic landscape remains barren of FDA-approved disease-modifying treatments. Patients and families currently depend on symptomatic management approaches that fail to address the underlying neurobiological mechanisms driving the condition. This therapeutic vacuum has attracted federal attention, with the National Institutes of Health recently mobilizing new funding streams specifically targeting innovative therapeutic solutions.

Scientific Foundation and Drug Mechanism

NeuroNOS, founded by Prof. Haitham Amal from Hebrew University and Harvard Medical School, represents a convergence of world-class scientific expertise. The team’s research foundation includes two Nobel Prize winners, positioning this collaboration among the field’s most prestigious initiatives. The platform’s innovation centers on small-molecule therapeutics engineered to traverse the blood-brain barrier while modulating nitric oxide dysregulation—a pathological mechanism increasingly recognized as disease-modifying in autism pathophysiology. By targeting this specific air molecule dysfunction at the neurochemical level, NeuroNOS addresses mechanisms rather than mere symptom suppression.

The company has already achieved FDA Orphan Drug Designation status for two indications: Phelan-McDermid Syndrome and glioblastoma. These designations unlock regulatory advantages including market exclusivity guarantees and accelerated review pathways—substantial benefits in bringing novel therapeutics to patients.

Transaction Structure

Under the acquisition framework, XLT will secure its 85% ownership stake through an equity component (19.9% of XLT’s outstanding shares), immediate cash consideration of $1 million, plus contingent milestone payments reaching $32.5 million. The contingent structure includes $5.5 million associated with clinical development milestones through New Drug Application submission, with an additional $26 million contingent upon achieving defined commercial sales thresholds. Beyond Air will maintain a 19.99% post-transaction ownership position in XLT, retaining ongoing exposure to NeuroNOS’ success trajectory.

Market Impact

The acquisition fundamentally repositions XLT’s corporate strategy, transforming NeuroNOS into its flagship therapeutic platform spanning autism and neuro-oncology applications. This expansion extends the company’s reach beyond its existing immunology-focused intellectual property portfolio into high-unmet-need therapeutic categories.

Market response has been immediate and pronounced. Over the previous twelve-month trading period, XAIR shares ranged between $1.37 and $2.43. Current trading reflects significant momentum, with the stock now valued at $2.28, representing a 160% appreciation from recent lows. This valuation reflects investor recognition of the transaction’s strategic significance within the emerging autism therapeutics landscape.