Is Xenetic Biosciences (XBIO) Stock All Set To Hit $5 This Week?
Small biotech company, Xenetic Biosciences (NASDAQ:XBIO) shares on 23rd July surged but there is not much clarity on the reasons. It seems that a close partner may be pushing Xenetic shares with expansion plans.
Headquartered in Massachusetts, the company was founded in 1997 and develops cell-based therapeutics for targeting tumorneoantigens. The firm became famous for its PolyXen drug-delivery platform, promoting to prolong half-life of biologic drugs.
Gains are not the result of WallStreet Bets short squeeze as just 0.39% of the company’s float is short. Takeda Pharmaceuticals is to thank for the price doubling, as Xenetic has exclusive licensing agreement for its product and gets royalty from Takeda for use of PolyXen in the treatment of coagulation disorders.
Takeda Pharmaceuticals, one of the large pharma companies in Asia, announced $126 million expansion in Thousand Oaks region of California.
This expansion will ensure renovation of Takeda’s existing facility besides construction of another larger facility. Xenetic will be a major beneficiary as this is the facility where Takeda conducts its biologics manufacturing, which will ensure bigger demand for PolyXen.
Market Reaction:
On Friday, XBIO stock soared 35.50% at $2.52 with more than 300.54 million shares, compared to its average volume of 5.21 million shares. The stock has moved within a range of $2.1800 – 4.7500 after opening the trade at $2.20. Over the past 52-week, the stock has been trading within a range of $0.7600 – 5.8500.
