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2015-10-07

Xenetic Biosciences, Inc.: Xenetic Biosciences, Inc.'s Major Strategic Shareholders Enter Into Long Term Lock-Up Agreements

LEXINGTON, Mass., Oct. 07, 2015 (GLOBE NEWSWIRE) -- Xenetic Biosciences, Inc.
(OTCQB:XBIO) (the "Company"), a biopharmaceutical company focused on
developing next-generation biologic drugs and novel oncology therapeutics,
announces that several of its major shareholders including Baxalta
Incorporated (NYSE:BXLT) (formerly Baxter Healthcare), SynBio LLC and Serum
Institute of India Limited have entered into Lock-up Letter Agreements (the
"Lock-up"). Under the Lock-up each of the shareholders has agreed to not
sell any of its shares currently held before June 30, 2016 and then further
to limit the sale of its shares in the Company for an additional six months
(to December 2016) to a price of no less than $1.25 per share. The Lock-up
covers more than 58% of the issued shares of the Company's common stock.

"The signing of these lock-up agreements, which cover such an extended period
of time and include a minimum price floor no less than $1.25 after June 30,
2016, demonstrates both the confidence our largest shareholders have in the
Company but also in the clinical pipeline and in the strategy of the
management team," said M. Scott Maguire, Chief Executive Officer of Xenetic.
"After adding in management's personal equity stakes, Xenetic has
approximately 66% of its outstanding shares in some form of no-sale
obligation. Going forward, these commitments will be important for
facilitating the Company's move to a globally recognized stock exchange
thereby creating a pathway to deliver the resources to drive our numerous
candidates into clinical development."

About Xenetic Biosciences

Xenetic Biosciences, Inc. is a biopharmaceutical company developing
next-generation biologic drugs and novel oncology therapeutics. Xenetic's
proprietary drug technology platforms include PolyXen®, designed to develop
next generation biologic drugs by extending the efficacy, safety and
half-life of biologic drugs, and OncoHist(TM) for the development of novel
oncology drugs focused on orphan indications.

Xenetic's lead product candidates include ErepoXen®, a polysialylated form of
erythropoietin (EPO) for the treatment of anemia in pre-dialysis patients
with chronic kidney disease, and OncoHist(TM), a novel recombinant human
histone H1.3 molecule for the treatment of refractory Acute Myeloid Leukemia
(AML) with potential to treat numerous other cancer indications. Xenetic is
collaborating with Russian-based OJSC Pharmsynthez (who is an affiliate of a
significant shareholder in Xenetic) and the Serum Institute of India to test
additional drug candidates and to de-risk the development process with
clinical data generated in Russia and India before Xenetic takes these
candidates into the clinic in the Western markets.

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+.

Xenetic is working together with Baxalta Incorporated (formerly Baxter
Healthcare) to develop a novel series of polysialylated blood coagulation
factors, including a next generation Factor VIII. This collaboration relies
on the Xenetic's PolyXen® technology to conjugate PSA to therapeutic
blood-clotting factors, with the goal of improving the pharmacokinetic
profile and extending the active life of these biologic molecules. Baxalta is
one of the Company's largest shareholders having invested in a number of
rounds with the most recent investment of $10M last year. The agreement is an
exclusive research, development and license agreement which grants Baxalta a
worldwide, exclusive, royalty-bearing license to Xenetic's PSA patented and
proprietary technology in combination with Baxalta'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.

Forward-Looking Statements

This release contains "forward-looking statements" within the meaning of the
Private Securities Litigation Reform Act of 1995, including but not limited
to, the potential safety, tolerability and efficacy of our product candidates
and the advancement of our clinical trials. Forward-looking statements can be
identified by terminology such as "anticipate," "believe," "could," "could
increase the likelihood," "estimate," "expect," "intend," "is planned,"
"may," "should," "will," "will enable," "would be expected," "designed to,"
"look forward," "may provide," "would" or similar terms, variations of such
terms or the negative of those terms. Any forward-looking statements in this
press release are based on management's current expectations of future events
and are subject to a number of risks and uncertainties that could cause
actual results to differ materially and adversely from those set forth in or
implied by such forward-looking statements. These risks and uncertainties
include, but are not limited to, the risk of cessation or delay of any of the
ongoing or planned clinical trials and/or our development of our product
candidates, the risk that the results of previously conducted studies
involving similar product candidates will not be repeated or observed in
ongoing or future studies involving current product candidates, the risk that
our collaboration with Baxter will not continue or will not be successful,
and the risk that any one or more of our product candidates will not be
successfully developed and commercialized. For a discussion of other risks
and uncertainties, and other important factors, any of which could cause our
actual results to differ from those contained in the forward-looking
statements, see the section entitled "Risk Factors" in our Annual Report on
Form 10-K, as well as discussions of potential risks, uncertainties, and
other important factors in our subsequent filings with the Securities and
Exchange Commission. All information in this press release is as of the date
of the release, and Xenetic undertakes no duty to update this information
unless required by law.

Contact:
Xenetic Biosciences Inc.

www.xeneticbio.com
M. Scott Maguire, Chief Executive Officer
781 778 7720
j.mccusker@xeneticbio.com

UK/European contact:

Arlington Group Asset Management Limited
Ross Ainger
+44 (0)207 389 5012
rainger@agam.co.uk

Brokers and Analysts:

Chesapeake Group
+1-410-825-3930
info@chesapeakegp.com

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This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Xenetic Biosciences, Inc. via Globenewswire

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