Xenetic Biosciences (NASDAQ:XBIO) is flying high today, although at first glance, you might not know why. The small cap biotech play doesn’t have much in the way of news to report. So, what is causing XBIO stock to shoot so high upward with no news? Well, a close partner seems to be pushing Xenetic up with its own big expansion plan.
Xenetic is a small biotech company, founded in 1997 and headquartered in Massachusetts. The company seeks to develop cell-based therapeutics to target tumor neoantigens. The company’s claim to fame is in its PolyXen drug-delivery platform, which promises to prolong the half-life of biologic drugs.
The company is seeing a massive boost in its stock value today. XBIO stock is rocketing up over 125% in a single session, with huge movement in terms of volume. Nearly 240 million shares of XBIO have traded hands today, as compared to the stock’s daily average of 445,000. But, with no news, investors are wondering why this is happening.
XBIO Stock Benefits From Takeda Expansion
No, these gains today aren’t the result of a r/WallStreetBets short squeeze. In fact, only 0.39% of XBIO’s float is short. Rather, Xenetic can thanks Takeda Pharmaceuticals (NYSE:TAK) for the price-doubling. According to Xenetic’s website, the company has an exclusive licensing agreement with Takeda over its PolyXen product. As such, Xenetic reels in royalties on Takeda’s use of PolyXen in the treatment of coagulation disorders. Given that Takeda is one of the largest pharma companies in Asia, this is a huge partnership for Xenetic.
With the two companies so closely linked, some good news out of the Takeda camp could definitely pump XBIO stock values. And it did; Takeda is announcing a $126 million expansion in the Thousand Oaks region of California. The expansion will see a full renovation of Takeda’s existing facility, as well as the construction of another larger facility. This news is especially good for Xenetic, as the Thousand Oaks facility is where Takeda conducts its biologics manufacturing, meaning PolyXen will see increased demand as this particular facility bulks up its production.
On the date of publication, Brenden Rearick did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.