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Xenetic Biosciences, Inc. (XBIO)·Q4 2024 Earnings Summary

Executive Summary

  • Q4 revenue of $0.65M* materially beat Wall Street consensus of $0.23M* on very small coverage (1 estimate), while EPS of -$0.68* missed the -$0.20* consensus, reflecting limited top-line scale versus operating costs *.
  • Management reiterated strategic focus on leveraging institutional partnerships and investigator-initiated studies to efficiently advance DNase I toward IND and first-in-human Phase 1 in pancreatic carcinoma and other solid tumors .
  • Cash declined sequentially to $6.17M* at year-end (vs. $7.30M* in Q2 and $6.84M* in Q3), consistent with ongoing R&D and G&A needs despite efforts to minimize internal spend *.
  • Potential stock catalysts: IND progress and Phase 1 initiation timelines, plus partnering updates (e.g., Scripps extension and CAR-T combination program) .

Note: Values marked with * are retrieved from S&P Global.

What Went Well and What Went Wrong

What Went Well

  • Q4 revenue beat vs. consensus on royalty-driven top line, benefitting from Takeda sublicense royalties (FY 2024 royalties ~$2.5M) *.
  • Partnership momentum: extended research collaboration with Scripps, adding up to ~$400k in funding to advance DNase I + CAR-T programs and preserve optionality on new IP .
  • Preclinical progress and data presentations continued (e.g., SITC 2024), supporting the DNase-based oncology platform in multiple indications; management emphasized efficient resource use and partnership leverage .

What Went Wrong

  • EPS miss: Q4 diluted EPS of -$0.68* missed the -$0.20* consensus on limited scale versus opex; EBITDA remained negative, consistent with development-stage profile *.
  • Operating cost pressures persisted despite targeted reductions; FY R&D declined to $3.3M and G&A to $3.4M, but severance and benefits in 2024 offset some savings .
  • Cash trended lower sequentially (Q2: $7.3M, Q3: $6.8M, FY-end: ~$6.2M) as activities progressed toward IND/Phase 1 .

Financial Results

Summary Metrics (quarterly)

MetricQ2 2024Q3 2024Q4 2024
Revenue ($USD)$0.726M*$0.614M*$0.649M*
Net Income ($USD)-$1.274M*-$0.437M*-$1.054M*
Diluted EPS ($USD)-$0.83*-$0.28*-$0.68*
Net Income Margin (%)-175.38%*-71.09%*-162.53%*
Cash & Equivalents ($USD)$7.300M* $6.840M* $6.166M*; press release: ~$6.2M

Note: Values marked with * are retrieved from S&P Global.

Estimates vs. Actuals (Q4 2024)

MetricConsensus (Q4 2024)Actual (Q4 2024)# of EstimatesOutcome
Revenue ($USD)$0.229M*$0.649M*1*Beat
EPS ($USD)-$0.20*-$0.68*1*Miss
EBITDA ($USD)-$2.082M*N/A1*N/A

Note: Values marked with * are retrieved from S&P Global.

KPIs and Operating Detail

KPIQ2 2024Q3 2024Q4 2024
Royalty Payments ($USD)~$0.7M N/AFY 2024: ~$2.5M
R&D Expense ($USD)~$0.9M ~$0.4M FY 2024: $3.3M
G&A Expense ($USD)~$1.1M Relatively flat vs. PY FY 2024: $3.4M

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Clinical Milestones (DNase I)FY 2024 → 2025Advance toward first-in-human/PoC across multiple indications Executing toward IND submission and Phase 1 trial; focus on pancreatic carcinoma and other solid tumors Maintained focus; clarified IND/Phase 1 timeline direction
Revenue/EPS/MarginsFY 2024/Q4 2024None providedNone providedN/A
OpEx (R&D/G&A)FY 2024/Q4 2024None providedNone provided; notes on severance/benefits impact N/A
OI&E, Tax Rate, DividendsFY 2024/Q4 2024None providedNone providedN/A

Earnings Call Themes & Trends

No Q4 2024 earnings call transcript found.

TopicPrevious Mentions (Q2 2024)Previous Mentions (Q3 2024)Current Period (Q4 2024)Trend
R&D execution (DNase program)Ongoing preclinical studies; multiple readouts expected in 2H24 Continued preclinical data; planning further disclosures (e.g., SITC) Encouraging preclinical data across several indications; progressing toward IND/Phase 1 Steady progress; pipeline maturation toward clinical entry
Partnerships/Institutional leverageFocused on investigator-initiated studies; efficient capital use Leveraging institutional partnerships (Tokyo Medical Univ., Scripps) Extended Scripps collaboration, added funding; continued pursuit of other collaborations Strengthening external collaborations
Regulatory/Clinical pathClinical PoC across multiple indications targeted Ongoing progress toward first-in-human Executing toward IND and Phase 1 trial; emphasis on pancreatic carcinoma Increasing clarity on IND/Phase 1 intent
Cash runway/disciplineEnded Q2 with $7.3M; intent to minimize non-program spend Ended Q3 with $6.8M; reductions in certain costs Ended FY with ~$6.2M; leveraging partnerships to limit internal investment Cash down sequentially; disciplined spend reiterated
CAR-T combination strategyN/ACAR-T combinations referenced; preclinical completed Scripps extension to deepen CAR-T combinations; improved efficacy rationale Expanding CAR-T adjunct strategy

Management Commentary

  • “Leveraging these relationships allows us to advance our technology toward the clinic while utilizing our resources efficiently and minimizing our internal investment. Looking ahead to 2025, we are executing on our initiatives as we progress toward an IND and Phase 1 clinical trial and look forward to an exciting year.” — James Parslow, Interim CEO & CFO .
  • “We are encouraged by the preclinical data generated to date and remain focused on building a growing body of data and further developing our pipeline to build value in the near and long term.” — James Parslow .
  • “We remain confident in the potential of our DNase-based oncology platform and continue to advance our preclinical studies… focusing our resources on driving our pipeline towards first-in-human clinical studies and establishing proof-of-concept in multiple indications.” — James Parslow .
  • “We anticipate that this growing body of data will have an important impact in demonstrating the promise of incorporating DNase into clinical treatment regimens for certain solid tumors, and in guiding our clinical development strategy.” — Jeffrey Eisenberg, CEO (Q1 2024) .

Q&A Highlights

No Q4 2024 earnings call/Q&A transcript was available for review.

Estimates Context

  • Revenue: Q4 actual $0.65M* vs. consensus $0.23M* (1 estimate) — revenue beat; top line largely royalty-driven (Takeda sublicense royalties ~$2.5M FY) *.
  • EPS: Q4 actual -$0.68* vs. consensus -$0.20* (1 estimate) — EPS miss reflecting expenses versus limited revenue scale *.
  • Implications: Consensus likely needs to adjust EPS assumptions to reflect near-term spend levels until IND/Phase 1 inflection; revenue modeling should consider timing variability of royalties and lack of product sales *.

Note: Values marked with * are retrieved from S&P Global.

Key Takeaways for Investors

  • Q4 print: mixed — revenue beat, EPS miss; single-estimate coverage suggests fragile consensus signaling *.
  • Cash of ~$6.2M at FY-end underpins near-term operations; management emphasizes minimizing internal investment through institutional partnerships .
  • Strategic momentum: extended Scripps collaboration (up to ~$400k) and ongoing CAR-T combination work strengthen platform optionality and potential future licensing .
  • Clear 2025 focus on IND and Phase 1 initiation for systemic DNase I in pancreatic carcinoma and other solid tumors; watch for regulatory milestones and clinical site activations .
  • Royalty stream from Takeda was ~$2.5M in FY 2024, relatively flat YoY, offering modest non-dilutive funding but insufficient to offset opex fully .
  • Near-term trading setup: headlines around IND acceptance and first-patient-in could be positive catalysts; absence of an earnings call limits narrative depth, making press releases and scientific conference updates key information sources .
  • Medium-term thesis: clinical proof-of-concept in NET-targeting DNase combinations, expansion into CAR-T adjunct therapy, and partnering/licensing outcomes will be central to value creation .

Sources: Q4 FY 2024 8-K and press release ; Q3 2024 8-K and press release ; Q2 2024 8-K and press release ; Scripps collaboration extension 8-K and press release . Values marked with * are retrieved from S&P Global.