Xenetic Biosciences Receives $3 Million Milestone Payment from Shire plc for PSA-Recombinant SHP656 in
Development for Long-Acting Treatment for Hemophilia
Xenetic Biosciences, Inc. (NASDAQ: XBIO) (“Xenetic” or the “Company”), a clinical-stage biopharmaceutical
company focused on the discovery, research and development of next-generation biologic drugs and novel orphan oncology
therapeutics, announced today that Xenetic received a $3 million milestone payment from Shire plc (LSE: SHP, NASDAQ: SHPG) related
to Shire’s advancing the Phase 1/2a clinical study for the PSA-Recombinant SHP656 or Factor VIII (“FVIII”) being developed as a
long-acting therapeutic for the treatment of hemophilia. The stated goal of Shire is to introduce an innovative FVIII protein that
can significantly prolong the circulating half-life of the FVIII protein, with the objective of providing a once weekly treatment
or reaching higher trough activity levels for greater efficacy.
“We are thrilled with the progress that Shire has made developing the SHP656 program, which is currently in Phase 1/2a clinical
trials for the treatment of hemophilia,” said Scott Maguire, Xenetic’s Chief Executive Officer. “We look forward to the continued
development of SHP656 utilizing our proprietary PolyXen™ platform technology with the goal of having a once weekly or less frequent
dosing, thereby making it the longest acting hemophilia A factor replacement treatment in development in the $9.3 billion global
hemophilia market(1).”
Xenetic announced its exclusive research, development, license and supply agreement with Shire plc (formerly Baxalta,
Baxter Incorporated and Baxter Healthcare) in January 2014. The collaboration with Shire utilizes Xenetic's PolyXen platform
technology to conjugate polysialic acid (“PSA”) to therapeutic blood-clotting factors, with the goal of improving the
pharmacokinetic profile and extending the active half-life of these biologic molecules. Shire is running and funding the SHP656
program, which is currently in a Phase 1/2a clinical trial. Shire filed a Clinical Trial Application (“CTA”) for the program in Q4
2015 and commenced human clinical trials during the first quarter of 2016.
Under the January 2014 license deal, Xenetic is entitled to up to $100 million in potential development, regulatory, sales and
deadline extension receipts, which are contingent on the performance of Shire achieving certain milestones. Xenetic is also
entitled to royalties on potential net sales. In connection with this deal, in 2014 Shire made a $10 million equity
investment in the Company. Combined with a previous $3 million equity investment, Shire is one of the Company's largest
shareholders.
Shire is a leading global biotechnology company focused on serving people affected by rare diseases and highly specialized
conditions.
(1) Source: http://www.grandviewresearch.com/industry-analysis/hemophilia-treatment-industry
About PolyXen™
PolyXen™ is a patent-protected platform technology for creating proprietary, next-generation protein therapeutics by attaching
polysialic acid (“PSA”), a biodegradable polymer found in living systems, to existing protein or peptide therapeutics, which can
improve their pharmacological properties.
Attachment of PSA (“polysialylation”) to a therapeutic increases its apparent size, which reduces systemic clearance rates,
while shielding the protein from other degradation pathways. The PolyXen™ platform permits optimization of a target therapeutic’s
pharmacological properties, by controlling the amount, size, and sites of attachment of the PSA polymers.
In clinical and preclinical settings, therapeutic proteins polysialylated with the PolyXen™ platform have been shown to have
extended circulating half-life, improved thermodynamic stability and resistance to proteases, while retaining pharmacological
activity. Numerous human clinical trials to date have shown no evidence of PSA- induced immunogenicity.
About Xenetic Biosciences
Xenetic Biosciences, Inc. is a clinical-stage biopharmaceutical company focused on discovery, research and development of
next-generation biologic drugs and novel orphan oncology therapeutics. Xenetic's proprietary drug development platforms include
PolyXen™, which enables next generation biologic drugs by improving their half-life and other pharmacological properties. Xenetic's
lead investigational product candidates include FDA orphan designated oncology therapeutic sodium cridanimod for the treatment
of progesterone receptor negative endometrial cancer, and a polysialylated form of erythropoietin for the treatment of anemia in
pre-dialysis patients with chronic kidney disease.
Xenetic is also working together with Shire plc (formerly Baxalta, Baxter Incorporated and Baxter Healthcare) to develop a
novel series of polysialylated blood coagulation factors, including a next generation Factor VIII. This collaboration relies on
Xenetic's PolyXen technology to conjugate polysialic acid (“PSA”) to therapeutic blood-clotting factors, with the goal of improving
the pharmacokinetic profile and extending the active life of these biologic molecules. Shire is one of the Company's largest
shareholders having invested $10 million in the common stock of the Company during 2014. The agreement is an exclusive
research, development and license agreement which grants Shire a worldwide, exclusive, royalty-bearing license to Xenetic's PSA
patented and proprietary technology in combination with Shire's proprietary molecules designed for the treatment of blood and
bleeding disorders. Under the agreement, Xenetic may receive regulatory and sales target payments for total potential milestone
receipts of up to $100 million plus royalties on sales.
Xenetic is also developing a broad pipeline of clinical candidates for next generation biologics and novel oncology therapeutics
in a number of orphan disease indications. For more information, please visit the company's website at www.xeneticbio.com and connect on Twitter, LinkedIn, Facebook and Google+.
Forward-Looking Statements
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Jenene Thomas Communications, LLC.
Jenene Thomas, 908-938-1475
jenene@jenenethomascommunications.com
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