Xenetic Biosciences, Inc. (NASDAQ: XBIO) announced its financial results for the third quarter ended September 30, 2026, and disclosed a proposed share exchange transaction with Santersus AG. The company reported a net loss of approximately $1.7 million, or $0.72 per share, for the quarter, compared to a net loss of approximately $0.5 million, or $0.33 per share, in the prior-year period.
Key financial figures for the three months ended September 30, 2026, included:
- Royalty revenue: Decreased approximately 29% to approximately $0.7 million, compared to approximately $1.0 million in the prior year.
- Research and development expenses: Decreased approximately 31% to approximately $0.5 million, compared to approximately $0.8 million in the prior year.
- General and administrative expenses: Increased approximately 138% to approximately $1.9 million, compared to approximately $0.8 million in the prior year, primarily due to legal and financial advisory costs related to the proposed transaction.
- Cash and cash equivalents: Totaled approximately $5.8 million as of September 30, 2026, compared to approximately $7.9 million as of December 31, 2025.
In addition to the financial results, Xenetic announced a definitive share exchange agreement with Santersus AG. The proposed transaction is an all-stock deal expected to create a Nasdaq-listed clinical-stage company focused on targeting neutrophil extracellular traps (NETs). The combined company is expected to trade on the Nasdaq Capital Market under the ticker symbol "SNTS". The transaction is expected to close in the first quarter of 2027, subject to approval by Xenetic stockholders and the effectiveness of a resale registration statement on Form S-1.
Strategically, Xenetic highlighted the initiation of a clinical evaluation of DNase I in combination with CAR T-cell therapy. The investigator-initiated Phase I study (NCT07361224) is being conducted at Tel Aviv Sourasky University Medical Center in Israel in collaboration with PeriNess Ltd. The company expects initial efficacy data from this study in the second quarter of 2027.
