Xenetic Biosciences, Inc. Reports Second Quarter 2024 Financial Results and Provides Business Update

Rhea-AI Summary

Xenetic Biosciences (NASDAQ:XBIO) reported its Q2 2024 financial results and provided a business update. Key highlights include:

1. Ongoing preclinical studies with data expected before year-end
2. Focus on demonstrating DNase-based oncology program in clinical proof-of-concept studies
3. Q2 2024 net loss of $1.3 million
4. R&D expenses remained flat at $0.9 million
5. G&A expenses increased by 19.5% to $1.1 million
6. Royalty payments of $0.7 million, an 11.6% increase year-over-year
7. Cash position of $7.3 million at quarter-end

The company remains confident in its DNase-based oncology platform and is advancing towards Phase 1 clinical development for pancreatic carcinoma and other solid tumors.

Positive

• Ongoing preclinical studies with data expected before year-end
• Advancing DNase-based oncology program towards Phase 1 clinical development
• 11.6% increase in royalty payments to $0.7 million
• $7.3 million cash position to fund operations

Negative

• Net loss of $1.3 million in Q2 2024
• 19.5% increase in General and Administrative expenses to $1.1 million

Insights

Financial Analyst

Xenetic Biosciences' Q2 2024 results reveal a mixed financial picture. The company's net loss of $1.3 million and increased G&A expenses by 19.5% are concerning. However, the $0.7 million in royalty payments from Takeda, up 11.6% year-over-year, is a positive sign. The $7.3 million cash position provides a runway given the current burn rate. Investors should monitor the company's ability to advance its DNase-based oncology program towards clinical trials without additional funding.

The flat R&D expenses, despite increased personnel costs, suggest potential cost-cutting measures in pre-clinical development. This could impact the timeline for expected preclinical data and subsequent clinical trials. The focus on multiple indications for proof-of-concept studies may be ambitious given the current financial constraints. Shareholders should watch for any updates on potential partnerships or funding strategies to support the company's ambitious goals.

Oncology Research Analyst

Xenetic's focus on its DNase-based oncology platform for hard-to-treat cancers is promising, particularly for pancreatic carcinoma and metastatic solid tumors. The company's commitment to generating preclinical data by year-end is important for validating the technology. However, the lack of specific milestones or detailed progress updates is concerning.

The transition from preclinical to Phase 1 studies is a critical juncture that often requires significant resources. Xenetic's strategy to target multiple indications for proof-of-concept studies could be a double-edged sword. While it may increase the chances of success, it could also stretch resources thin. Investors should look for more concrete data on the DNase platform's efficacy and safety profile in the upcoming preclinical results to better assess the technology's potential and the company's prospects in the competitive immune-oncology landscape.

• Ongoing preclinical studies with data expected before year end

• Focus on demonstration of DNase-based oncology program in clinical proof-of-concept studies in multiple indications

• Ended the quarter with $7.3 million of cash to fund operations

FRAMINGHAM, MA / ACCESSWIRE / August 14, 2024 / Xenetic Biosciences, Inc. (NASDAQ:XBIO) ("Xenetic" or the "Company"), a biopharmaceutical company focused on advancing innovative immune-oncology technologies addressing hard to treat cancers, today reported its financial results for the second quarter of 2024.

"We remain confident in the potential of our DNase-based oncology platform and continue to advance our preclinical studies with data expected before year end. Looking ahead, we are focusing our resources on driving our pipeline towards first-in-human clinical studies and establishing proof-of-concept in multiple indications. Our goal remains unwavering and we are committed to bringing a much-needed, innovative immune-oncology treatment to patients and generating shareholder value in the near and long term," commented, James Parslow, Interim Chief Executive Officer and Chief Financial Officer of Xenetic.

Xenetic is executing on its plans to advance its DNase-based oncology program towards Phase 1 clinical development for the treatment of pancreatic carcinoma and other locally advanced or metastatic solid tumors.

Summary of Financial Results for Second Quarter 2024

Net loss for the quarter ended June 30, 2024 was approximately $1.3 million. Research & development expenses for the three months ended June 30, 2024 of approximately $0.9 million were relatively flat with the comparable quarter in 2023 as increases in personnel costs due to severance and benefits incurred in connection with a separation agreement entered into during the second quarter of 2024 were substantially offset by decreases in spending in connection with our pre-clinical and process development efforts related to our DNase platform. General and administrative expenses for the three months ended June 30, 2024 increased by approximately $0.2 million, or 19.5%, to approximately $1.1 million from approximately $0.9 million in the comparable quarter in 2023. The increase was primarily due to certain severance and benefits expensed in connection with a separation agreement entered into during the second quarter of 2024 partially offset by decreases in accounting and legal fees.

Additionally, the Company reported royalty payments of approximately $0.7 million related to its sublicense of the PolyXen® platform technology with Takeda in the quarter ended June 30, 2024, representing an approximate 11.6% increase over the quarter ended June 30, 2023.

The Company ended the quarter with approximately $7.3 million of cash.

About Xenetic Biosciences

Xenetic Biosciences, Inc. is a biopharmaceutical company focused on advancing innovative immune-oncology technologies addressing hard to treat cancers. The Company's DNase platform is designed to improve outcomes of existing treatments, including immunotherapies, by targeting neutrophil extracellular traps (NETs), which are involved in cancer progression. Xenetic is currently focused on advancing its systemic DNase program into the clinic as an adjunctive therapy for pancreatic carcinoma and locally advanced or metastatic solid tumors.

For more information, please visit the Company's website at www.xeneticbio.com and connect on X, LinkedIn, and Facebook.

Forward-Looking Statements

This press release contains forward-looking statements that we intend to be subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements contained in this press release other than statements of historical facts may constitute forward-looking statements within the meaning of the federal securities laws. These statements can be identified by words such as "expects," "plans," "projects," "will," "may," "anticipates," "believes," "should," "intends," "estimates," "remain," "focus", "confidence in", "potential", and other words of similar meaning, including, but not limited to, all statements regarding expectations for our DNase-base oncology platform, including statements regarding: ongoing pre-clinical studies with data expected before year end; focusing on demonstration of DNase-based oncology program in clinical proof-of-concept studies in multiple indications, the potential of our DNase-based oncology platform, focusing our resources on driving our pipeline towards first-in-human clinical studies and establishing proof-of-concept in multiple indications, our commitment to bringing a much-needed, innovative immune-oncology treatment to patients and generate shareholder value in the near and long term, and plans to advance our DNase-based oncology program towards Phase 1 clinical development for the treatment of pancreatic carcinoma and other locally advanced or metastatic solid tumors, our focus on advancing innovative immune-oncology technologies addressing hard to treat cancers, the DNase platform improving outcomes of existing treatments, including immunotherapies, by targeting neutrophil extracellular traps (NETs), which are involved in cancer progression, and our focus on advancing our systemic DNase program into the clinic as an adjunctive therapy for pancreatic carcinoma and locally advanced or metastatic solid tumors. Any forward-looking statements contained herein are based on current expectations and are subject to a number of risks and uncertainties. Many factors could cause our actual activities, performance, achievements, or results to differ materially from the activities and results anticipated in forward-looking statements. Important factors that could cause actual activities, performance, achievements, or results to differ materially from such plans, estimates or expectations include, among others, (1) unexpected costs, charges or expenses resulting from our manufacturing and collaboration agreements; (2) unexpected costs, charges or expenses resulting from the licensing of the DNase platform; (3) uncertainty of the expected financial performance of the Company following the licensing of the DNase platform; (4) failure to realize the anticipated potential of the DNase or PolyXen technologies; (5) the ability of the Company to obtain funding and implement its business strategy; and (6) other risk factors as detailed from time to time in the Company's reports filed with the SEC, including its annual report on Form 10-K, periodic quarterly reports on Form 10-Q, current reports on Form 8-K and other documents filed with the SEC. The foregoing list of important factors is not exclusive. In addition, forward-looking statements may also be adversely affected by general market factors, general economic and business conditions, including potential adverse effects of public health issues, such as the COVID-19 outbreak, and geopolitical events, such as the Russian invasion of Ukraine and conflict in the Middle East, on economic activity, competitive product development, product availability, federal and state regulations and legislation, the regulatory process for new product candidates and indications, manufacturing issues that may arise, patent positions, litigation, and shareholder activism, among other factors. The forward-looking statements contained in this press release speak only as of the date the statements were made, and the Company does not undertake any obligation to update forward-looking statements, except as required by law.

Contact:
JTC Team, LLC
Jenene Thomas
(833) 475-8247
xbio@jtcir.com

SOURCE: Xenetic Biosciences, Inc.

View the original press release on accesswire.com

FAQ

What were Xenetic Biosciences' (XBIO) financial results for Q2 2024?

Xenetic Biosciences reported a net loss of $1.3 million for Q2 2024. R&D expenses remained flat at $0.9 million, while G&A expenses increased by 19.5% to $1.1 million. The company ended the quarter with $7.3 million in cash.

What is the focus of Xenetic Biosciences' (XBIO) current research?

Xenetic Biosciences is focusing on advancing its DNase-based oncology program towards Phase 1 clinical development for the treatment of pancreatic carcinoma and other locally advanced or metastatic solid tumors.

When does Xenetic Biosciences (XBIO) expect to release preclinical study data?

Xenetic Biosciences expects to release data from its ongoing preclinical studies before the end of 2024.

How much did Xenetic Biosciences (XBIO) receive in royalty payments in Q2 2024?

Xenetic Biosciences reported royalty payments of approximately $0.7 million in Q2 2024, representing an 11.6% increase compared to Q2 2023.