Xenetic Biosciences Reports Improved Financial Performance with Reduced Losses and Increased Revenue

Xenetic Biosciences, Inc. reported a net loss of approximately $2.7 million for the fiscal year ending December 31, 2025, a significant improvement compared to a net loss of approximately $4.0 million in 2024, reflecting a 32.3% reduction in losses. The company’s revenue increased by 19% to approximately $3.0 million, primarily driven by higher royalty income from its sublicense agreement with Takeda Pharmaceutical Co. Ltd. This increase in revenue was attributed to royalties recognized from certain countries during the year, indicating a positive trend in the company’s financial performance.

Operating expenses also saw a decline, with total operating costs and expenses decreasing by 13.3% to approximately $5.8 million, down from $6.7 million in the previous year. Research and development expenses decreased by 6.8% to approximately $3.1 million, largely due to the absence of a significant impairment charge that had impacted the previous year’s figures. General and administrative expenses decreased by 19.6% to approximately $2.7 million, attributed to reduced severance and benefits expenses related to prior executive separations.

In terms of strategic developments, Xenetic has initiated a formal strategic review process to explore various alternatives aimed at maximizing shareholder value. This includes the potential sale of the company or its assets, or a business combination. The board of directors has engaged in preliminary discussions with third parties regarding potential transactions, although no definitive agreements have been reached as of yet. The company remains committed to advancing its proprietary DNase technology, which targets neutrophil extracellular traps involved in cancer progression, and is focused on clinical development for pancreatic carcinoma and other solid tumors.

Operationally, the company has made significant strides in its research collaborations, including agreements with Scripps Research and the University of Virginia to advance its DNase technology. These collaborations are expected to enhance the development of the company’s drug candidates, although the company has not yet received regulatory marketing authorization for any of its products. As of December 31, 2025, Xenetic had approximately $7.9 million in cash, an increase from $6.2 million in the previous year, providing a stronger liquidity position to support ongoing operations and development efforts.

Looking ahead, Xenetic anticipates the need for additional capital to fund its long-term business initiatives, particularly as it continues to advance its clinical programs. The company raised approximately $4.0 million in net proceeds from an underwritten public offering in October 2025, which bolstered its working capital. However, the company acknowledges that market conditions and other external factors could impact its ability to secure future financing, which is critical for sustaining its operations and achieving its strategic objectives.