Xenetic Biosciences Reports 67.2% Revenue Growth in Q3 2025, Net Loss Increases

Xenetic Biosciences, Inc. reported its financial results for the third quarter and the first nine months of 2025, revealing a significant increase in revenue driven primarily by royalty income. For the three months ended September 30, 2025, the company generated total revenue of approximately $1.03 million, a 67.2% increase from $614,243 in the same period of 2024. The nine-month revenue also rose by 19.4% to $2.21 million, compared to $1.85 million in the prior year. This growth is attributed to increased royalty payments from its sublicense agreement with Takeda Pharmaceutical Co. Ltd., reflecting improved sales from certain countries.

Despite the revenue growth, Xenetic reported a net loss of $509,940 for the third quarter, which is a 16.8% increase from the loss of $436,671 in the same quarter of 2024. For the nine-month period, the net loss decreased by 27.7% to $2.10 million from $2.91 million in the previous year. The company's operating expenses also saw notable changes; research and development costs surged by 105.6% to $756,482 in the third quarter, primarily due to increased manufacturing development efforts and pre-clinical research. General and administrative expenses rose by 9.3% to $815,209, largely due to higher legal costs associated with a strategic review process.

Xenetic's total assets decreased to $5.07 million as of September 30, 2025, down from $6.90 million at the end of 2024. The decline in cash reserves was notable, with cash at the end of the quarter reported at $4.12 million, compared to $6.17 million at the end of the previous year. The company’s current liabilities increased to $1.11 million, up from $894,263, reflecting a rise in accounts payable and accrued expenses. The accumulated deficit also grew to approximately $199.3 million, indicating ongoing financial challenges.

In terms of strategic developments, Xenetic has initiated a formal strategic review process to explore various alternatives aimed at maximizing shareholder value. This includes potential sales of assets or business combinations, with discussions already underway with third parties. The company has not set a definitive timeline for this review, and any potential transaction would require approval from shareholders and regulatory bodies. Additionally, Xenetic raised approximately $3.9 million in an underwritten offering of common stock subsequent to the quarter-end, which is expected to bolster its financial position.

Looking ahead, Xenetic remains focused on advancing its proprietary DNase technology, which targets neutrophil extracellular traps involved in cancer progression. The company anticipates continued operating losses in the near term but believes its existing resources, along with the recent capital raise, will support its operations for at least the next twelve months. However, it acknowledges the need for additional capital in the long term to pursue its business initiatives, emphasizing the volatile nature of the biotech capital markets as a factor in its future financing efforts.