Full Press Release Details
Biosciences, Inc. Reports Second Quarter 2019 Financial Results and Provides Corporate Update
Building momentum with recent acquisition of innovative XCART platform technology and closing of $15 million underwritten public
Corporate strategy shift with entry into the CAR T space positions Company to drive significant value for shareholders
Company executes on initial step in XCART development through recent signing of a research agreement enabling advancement towards
its stated goal of establishing an academic collaboration for XCART development
MA - (August 15, 2019) - Xenetic Biosciences, Inc. (NASDAQ:
XBIO) ("Xenetic" or the "Company"), a clinical-stage biopharmaceutical company focused on the discovery,
research and development of next-generation biologic drugs and novel orphan oncology therapeutics, announced today its financial
results for the quarter ended June 30, 2019 and provided a corporate update.
Recent Corporate Highlights
"Over the course of 2019 we have
taken deliberate steps to transition Xenetic's focus and opportunities with the acquisition of the XCART platform technology.
We signed the acquisition agreement in the first quarter, then worked to not only fund the transaction but also to secure the capital
required to advance this potentially game-changing technology through early development. Now that the financing and transaction
closing are behind us, we believe we have opportunities to successfully achieve corporate, clinical and regulatory milestones and
drive significant shareholder value," commented Jeffrey Eisenberg, Chief Executive Officer of Xenetic.
"We acknowledge that this has been
a challenging period for our stakeholders, and unfortunately, we believe our recent progress and momentum is not properly reflected
in our current share price. However, I am pleased to say that today we are essentially a new company with a clear mission and vision,
and we believe that our catalytic shift in strategy with this differentiated CAR T platform technology will prove to be transformational
for Xenetic. Moving forward, our team is focused on leveraging our R&D efforts on the advancement of the XCART platform to
develop cell-based therapeutics for the treatment of multiple tumor types of B-cell
Non-Hodgkin lymphomas, with the potential to address an initial global market opportunity
of over $5 billion annually.[1]
I believe Xenetic has the potential to become a significant player in this dynamic CAR T oncology space," added Mr. Eisenberg.
Market Reports World GLOBAL NON-HODGKIN LYMPHOMA THERAPEUTICS MARKET - SEGMENTED BY TYPE OF TREATMENT - GROWTH, TRENDS AND FORECASTS
(2018 - 2023); BioPharm Insight Surveillance, Epidemiology, and End Results (SEER) 9 registries, National Cancer Institute, 2017
Platform Technologies
On July 19, 2019, the Company completed
its previously announced acquisition of a novel CAR T platform technology, called "XCART." XCART is a proximity-based
screening platform capable of identifying CAR constructs that can target patient-specific tumor neoantigens, with a demonstrated
proof of mechanism in B-cell Non-Hodgkin lymphomas. The XCART technology, developed by The Scripps Research Institute in collaboration
with the Shemyakin-Ovchinnikov Institute of Bioorganic Chemistry, is believed to have the potential to significantly enhance the
safety and efficacy of cell therapy for B-cell lymphomas by generating patient- and tumor-specific CAR T cells.
Curtis Lockshin, Ph.D., Chief Scientific
Officer of Xenetic, stated, "Having completed the acquisition of our novel XCART technology platform, we are excited to embark
on the development of a personalized CAR T therapy for B-cell lymphomas, with the potential to offer cancer patients substantial
benefits over the existing standard of care and currently approved CAR T therapies. Our plan is to leverage this platform technology
to innovate and develop new oncology therapeutics through regulatory approval and commercialization in areas of significant unmet
medical need. Along the development path, we expect to identify multiple opportunities to collaborate with others in the CAR T
field to maximize the potential and impact of XCART. We are intensely gratified to have this opportunity to improve human health,
and by the enthusiasm of our growing team of scientific advisors in this novel and differentiated approach to Non-Hodgkin lymphomas."
The XCART technology platform was designed by its originators to utilize an established screening technique to identify peptide
ligands that bind specifically to the unique B-cell receptor ("BCR") on the surface of an individual patient's
malignant tumor cells. The peptide is then inserted into the antigen-binding domain of a CAR, and a subsequent transduction/transfection
process is used to engineer the patient's T cells into a CAR T format which redirects the patient's T cells to attack
the tumor. Essentially, the XCART screening platform is the inverse of a typical CAR T screening protocol wherein libraries of
highly specific antibody domains are screened against a given target. In the case of XCART screening, the target is itself an antibody
domain, and hence highly specific by its nature. The XCART technology creates the possibility of personalized treatment of lymphomas
utilizing a CAR with an antigen-binding domain that should only recognize, and only be recognized by, the unique BCR of a particular
patient's B-cell lymphoma.
for XCART is reduced off-tumor toxicities, such as B-cell aplasia. Xenetic's clinical development program will seek to confirm
the early preclinical results, and to demonstrate a more attractive safety profile than existing therapies.
entered into a research agreement to begin the process of technology transfer of the XCART technology and enable advancement towards
Xenetic's stated goal of establishing an academic collaboration for XCART development. The Company's early activities
will build off of the work of the XCART inventors which was previously described in a Science Advances article published
in November 2018.[2]
The Company's proprietary drug development platform, PolyXen, is a platform technology which can be applied to protein or
peptide therapeutics, enabling next-generation biological drugs to prolong a drug's circulating half-life and potentially improve
other pharmacological properties. PolyXen has been demonstrated in human clinical trials to confer prolonged half-life on biotherapeutics
such as recombinant human erythropoietin and recombinant Factor VIII ("rFVIII"). Additionally, the Company believes
that PolyXen has potential utility in other molecule classes such as small molecules.
Science Advances, 14 Nov 2018: Vol. 4, no. 11, eaau4580 DOI: 10.1126/sciadv.aau4580
Xenetic incorporates
its patented and proprietary technologies into a number of drug candidates currently under development with biotechnology and pharmaceutical
industry collaborators to create what the Company believes will be the next-generation biologic drugs with improved pharmacological
properties over existing therapeutics. The Company currently has an Exclusive License Agreement with Takeda Pharmaceuticals Co.
Ltd. ("Takeda") in the field of coagulation disorders. Takeda currently has one active development program underway
utilizing the PolyXen platform technology. In addition, in October 2017, Xenetic granted rights to Takeda to grant a nonexclusive
sublicense to certain patents related to PolyXen to a third party. The potential royalty stream resulting from the sublicense could
commence by the end of 2019.
Summary of Financial Results for Second
six months ended June 30, 2019 decreased approximately 29% to approximately $2.7 million compared to a net loss of approximately
$3.8 million for the same period in 2018. The Company has continued to reduce expenses, control non-essential spending and maximize
its available resources to advance its research and development efforts. The Company ended the quarter with approximately $1.0
million in cash. Subsequent to quarter end, the Company completed its $15 million public offering resulting in approximately $13.4
million of net proceeds to the Company.
closing of our recent financing, the Company is now in a much stronger financial position to successfully execute on our strategic
plan," James Parslow, Chief Financial Officer of Xenetic concluded. "This is truly an exciting time for Xenetic and
we look forward to continuing to leverage our innovative technologies, build shareholder value in both the near and long term,
and ultimately provide important therapies by leveraging our XCART platform technology."
About Xenetic Biosciences
Xenetic Biosciences,
Inc. is a clinical-stage biopharmaceutical company focused on the discovery, research and development of next-generation biologic
drugs and novel orphan oncology therapeutics. The Company recently announced its acquisition of the XCART platform, a novel CAR
T technology engineered to target personalized, patient-specific tumor neoantigens. The Company plans to initially apply the XCART
technology to develop cell-based therapeutics for the treatment of B-cell lymphomas.
Xenetic's proprietary drug development platform, PolyXen , enables next-generation biologic drugs by improving their half-life
and other pharmacological properties. The Company has ongoing business development activities to explore partnerships utilizing
its PolyXen delivery platform.
For more information, please visit the Company's website at www.xeneticbio.com
and connect on Twitter, LinkedIn, and Facebook.
This press release contains forward-looking
statements for purposes of 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,"
and other words of similar meaning, including, but not limited to, statements regarding the capability of the XCART technology
to expand the potential of CAR T cell therapy; the benefits of the acquisition of the XCART technology; the Company's belief
that our recent progress and momentum is not properly reflected in our current share price and that our catalytic shift in strategy