Full Press Release Details
Xenetic Biosciences, Inc. Reports Second Quarter
2023 Financial Results
- Company continues to execute on plan to advance
DNase-based oncology program towards Phase 1 clinical development for the treatment of pancreatic carcinoma and other locally advanced
or metastatic solid tumors
FRAMINGHAM, MA - (August 11, 2023)
- 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 2023.
"Since the beginning of 2023, we have taken
important, fundamental steps to further advance our DNase-based oncology platform. We have secured strategic collaborations, bolstered
our team's expertise and identified development and regulatory pathways that give us line of sight towards our first in human clinical
study. Moving forward, we intend to establish additional strategic collaborations that we believe will enable us to expedite this pathway
to the clinic and expand our opportunities and value proposition," commented Jeffrey
Eisenberg, Chief Executive Officer of Xenetic.
Summary of Financial Results for Second Quarter
Net loss for the quarter ended June 30, 2023 was
approximately $1.1 million. Research & development expenses for the three months ended June 30, 2023 decreased by approximately $1.2
million, or 56.5%, to approximately $0.9 million from approximately $2.1 million in the comparable quarter in 2022. The decrease was primarily
due to in-process research and development ("IPR&D") expense of $1.3 million associated with the Company's licensing
of the DNase oncology platform during the three months ended June 30, 2022. There was no similar expense in 2023. Excluding the $1.3 million
of IPR&D expense from total R&D expense of $2.1 million for the three months ended June 30, 2022, R&D expense for the three
months ended June 30, 2023 increased by $0.1 million, or 16.9%, primarily due to increased spending related to our pre-clinical development
efforts associated with our DNase platform. Royalty payments of approximately $0.7 million were received from our sublicense with Takeda
Pharmaceuticals Co. Ltd in the three months ended June 30, 2023, representing an approximate 56.2% increase over the same period in 2022.
General and administrative expenses for the three months ended June 30, 2023 decreased by approximately $0.1 million, or 7.8%, to approximately
$0.9 million from approximately $1.0 million in the comparable quarter in 2022. The decrease was primarily due to a decrease in legal
fees and share-based expense during the three months ended June 30, 2023 compared to the same period in 2022.
The Company ended the quarter with approximately
$10.7 million of cash and no debt.
In our narrative discussion of operations above,
we exclude the impact of non-cash expenses from certain operating measures, which narrative discussion includes reconciliation of such
adjusted financial measures to the directly comparable GAAP financial measure. We believe these adjusted operating measures may provide
investors with useful information regarding our underlying performance from period to period and allow investors to better understand
our results of operations. Management uses these adjusted measures when assessing the performance of the business.
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
have been implicated in cancer progression and resistance to cancer treatments. 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 Twitter, LinkedIn,
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," and other
words of similar meaning, including, but not limited to, statements regarding: all statements regarding expectations for our DNase-base
oncology platform, including our plan to advance the DNase-based oncology program toward Phase 1 clinical development, our intention to
establish additional strategic collaborations, our belief that additional strategic collaborations will enable us to expedite its pathway
to the clinic and expand our opportunities and value proposition, our progress towards our first in human clinical study, our expectations
regarding the potential development of proprietary adoptive cell therapies potentially targeting multiple types of solid cancers for which
current CAR T cell therapies have shown limited or no effect, the DNase platform improving outcomes of existing treatments, including
immunotherapies, by targeting neutrophil extracellular traps (NETs), which have been implicated in cancer progression and resistance to
cancer treatments, 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, XCART or PolyXen technologies; (5)
the ability of the Company to 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, 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 and litigation, 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.