XLT's Big Bet: Snatching 85% of Autism-Focused NeuroNOS; Stock Soars 160%

XLT Biopharmaceuticals Ltd. (XTLB) just locked in a binding deal to secure 85% ownership of NeuroNOS Ltd., a Beyond Air Inc. (XAIR) subsidiary making waves in the autism drug development space. This acquisition marks XLT’s aggressive pivot into a therapeutics sector where demand dramatically outpaces supply.

The Science Behind the Deal

What makes NeuroNOS stand out? The company’s research team includes two Nobel Prize recipients and Prof. Haitham Amal, a heavyweight autism researcher from Hebrew University and Harvard. They’re developing small-molecule drugs engineered to penetrate the blood-brain barrier and target nitric oxide imbalances—a promising yet underexplored mechanism in autism spectrum disorder and select brain malignancies.

The science matters because right now, the field has a glaring gap: autism affects roughly 1 in 31 American children, yet the FDA hasn’t approved a single disease-modifying treatment. Families are stuck managing symptoms rather than addressing root neurological causes. NeuroNOS already holds FDA Orphan Drug designations for Phelan-McDermid Syndrome and glioblastoma, which translates to regulatory fast-track status and extended market exclusivity—a competitive moat.

Breaking Down the 85% Acquisition Terms

XLT is paying for this 85% stake through a blended structure: 19.9% of its own shares, $1 million upfront, plus up to $32.5 million in milestone payments to Beyond Air. The milestone ladder breaks down as $5.5 million pegged to clinical trial progress and NDA submission, with a chunky $26 million contingent on hitting commercial revenue targets.

Beyond Air retains 19.99% of XLT post-deal, maintaining skin in the game. The arrangement essentially transforms NeuroNOS from a research curiosity into XLT’s flagship autism and neuro-oncology platform, broadening its portfolio beyond its existing immunology intellectual property.

Market Momentum and Stock Performance

The timing aligns with a national tailwind. Federal leadership has officially prioritized autism research, with fresh NIH funding channeled toward breakthrough therapies. That backdrop is boosting investor appetite.

XAIR has fluctuated between $1.37 and $2.43 over the past twelve months. Currently trading at $2.28, the stock is up 160%—a sharp rally reflecting market enthusiasm for the strategic repositioning and the scientific credibility attached to the NeuroNOS acquisition.

For investors tracking biotech M&A activity, this 85% acquisition represents the kind of high-stakes scientific collaboration that occasionally shifts market dynamics in underserved therapeutic categories.