Xenetic Biosciences Inc (NASDAQ: XBIO) is having a great start to the trading session this morning, and for good reason. The company announced the acquisition of a CAR T asset, exciting investors who are pushing the stock for the top. Today, we’ll talk about:
- The new asset;
- what we’re seeing from XBIO stock as a result; and
- what we’ll be watching for ahead.
XBIO Is Climbing On Asset Acquisition
As mentioned above, Xenetic Biosciences is having a great day in the market today after announcing the acquisition of an asset. In a press release issued early this morning, the company said that it has entered into an agreement to acquire an novel CAR T platform.
The CAR T platform, known as XCART, is a proximity-based screening platform that is capable of identifying CAR constructs that can target patient-specific tumor neoantigens. In the release, XBIO said that the platfomr has a developed proof of mechanism in B-Cell Non-Hodgkin lympohmas.
XCART was developed by Scripps Research Institute in collaboration with Shemyakin-Ovchinnikov Institue of Bioorganic Chemistry. It is believed that the platform has the potential to significantly enhance the safety and efficacy of cell therapy for B-cell lymphomas by generating patient and tumor-specific CAR T cells.
Finally, the company said that the asset acquisition is subject to typical conditions associated with a transaction of its kind.
In a statement Jeffrey Eisenberg, CEO at XBIO, had the following to offer:
This acquisition is a transformative step in the strategic evolution of Xenetic. With this novel and differentiated CAR T technology, we are now positioned in a field that is at the forefront in the development of new oncology therapeutics, which we believe will drive significant value for shareholders. The XCART platform was designed to target personalized, patient-specific tumor neoantigens and has demonstrated promising preclinical data in an area of significant unmet medical need. Our R&D efforts will focus initially on leveraging the XCART platform to develop cell-based therapeutics for the treatment of B-cell Non-Hodgkin lymphomas, an initial global market opportunity estimated to exceed $5 billion per year.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to work in the market is that the news leads to moves. In the case of Xenetic Biosciences, the news proved to be overwhelmingly positive. After all, the new asset could become a bread winner for the company.
So, it’s not surprising to see that excited investors are pushing the stock up. As is just about always the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (9:02), XBIO is trading at $2.80 per share after a gain of $0.33 per share or 13.36% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on XBIO. In particular, we’re interested in following the story surrounding the company’s work with its new CAR T asset. Nonetheless, we’ll keep a close eye on the story and bring the news to you as it breaks!
What Do You Think?
Share your opinion of XBIO in the comments below!