Lixte Biotechnology Holdings Inc. (NASDAQ:LIXT) saw its stock drop 11.5% on Tuesday after the company announced the completion of its acquisition of Liora Technologies Europe Ltd., a UK firm focused on developing electronically controlled proton therapy systems for oncology.
As part of the deal, Lixte now owns Liora’s flagship LiGHT System (Linac for Image Guided Hadron Therapy), currently housed at the UK Science and Technology Facilities Council’s Daresbury Laboratory. Development of the system has already attracted more than $300 million in investment, the company noted.
Liora will operate as a wholly owned subsidiary of Lixte, marking the biotech’s formal expansion into the radiotherapy space.
“The acquisition of Liora represents our entry in the radiotherapy segment of cancer care and marks a significant step in LIXTE’s corporate growth and development as we aim to fulfill our mission of treating cancer with cutting-edge technologies,” said Geordan Pursglove, CEO of LIXTE.
Lixte said it intends to commercialize the LiGHT platform and ultimately pursue a recurring-revenue model through jointly run treatment centers. The company views the new technology as a strategic complement to its drug development pipeline, including clinical programs evaluating its LB-100 compound for Ovarian Clear Cell Carcinoma and metastatic colorectal cancer.
Despite Lixte’s enthusiasm over the acquisition, the market reaction was negative, with investors pushing the stock lower during Tuesday’s session.