Xenetic Biosciences Reports 16.1% Revenue Growth but Net Loss in Q1 2025

Xenetic Biosciences, Inc. reported its financial results for the first quarter of 2025, revealing a revenue increase of approximately 16.1%, reaching $593,261 compared to $510,817 in the same period of 2024. The growth in royalty revenue was attributed to improved timing of payments from its sublicense agreement with Takeda Pharmaceutical Co. Ltd., which had negatively impacted revenue in the previous year. Despite the increase in revenue, the company recorded a net loss of $903,141 for the quarter, a decrease from the $1,195,113 loss reported in the first quarter of 2024.

Operating expenses for the quarter totaled $1,535,670, down from $1,779,231 in the prior year, primarily due to reduced research and development (R&D) costs, which fell by 6.9% to $879,029. This decrease was linked to the departure of the former Chief Scientific Officer, resulting in lower personnel costs and share-based expenses. General and administrative expenses also decreased by 21.4% to $656,641, reflecting cost-cutting measures following leadership changes.

As of March 31, 2025, Xenetic's total assets were reported at $5,791,217, a decline from $6,901,443 at the end of 2024. The company's cash reserves decreased to $5,163,676 from $6,165,568, while current liabilities were reduced to $667,927 from $894,263. The accumulated deficit increased to $198,097,612, up from $197,194,471 at the end of the previous fiscal year. The company’s working capital also decreased to approximately $4.8 million, down from $5.7 million.

Xenetic continues to focus on advancing its proprietary DNase technology, which aims to enhance the efficacy of existing cancer treatments. The company is currently working on clinical development for its systemic DNase program targeting pancreatic carcinoma and other solid tumors. Management indicated that while existing resources are expected to sustain operations for at least the next twelve months, additional capital will be necessary for long-term business initiatives. The company is exploring various funding avenues, including public or private equity offerings and corporate collaborations, to support its ongoing projects.

Looking ahead, Xenetic acknowledges the potential impact of geopolitical events and market conditions on its operations. The company remains committed to its strategic goals, including the advancement of its DNase technology and the exploration of new partnerships to enhance its product pipeline. However, the uncertainty surrounding future financing and market dynamics poses challenges that could affect its operational trajectory.