On Friday, Xenetic Biosciences (NASDAQ: XBIO) stock had a 35% increase. However, the reason for the rise of this stock might not be the result of short squeeze by retail investors. Rather, the company is benefitting from its partner, Takeda Pharmaceuticals Co. Ltd.
According to the Pacific Coast Business Times, Takeda Pharmaceuticals is expanding its facility in Thousand Oaks and it is investing $126 million to build out its manufacturing operations to support new product lines. According to Xenetic’s website, the company has an exclusive licensing agreement with Takeda over its PolyXen product. Xenetic receives royalty payments under this agreement. Anyway, the company is seeing increased demand for its PolyXen.
In addition, the company is advancing the development of its XCART platform to develop cell-based therapeutics targeting the unique B-Cell receptor on the surface of an individual patient’s malignant tumor cells for the treatment of B-Cell lymphomas, an area of significant unmet medical need. The company said that Non-Hodgkin lymphoma is a cancer that originates in the lymphatic system, with approximately 75,000 new cases each year, and represents a $5 billion market opportunity.
However, Xenetic's stock had only a 17% increase this year. Although there was a positive news coming out, it is not a good time to buy this stock now.
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