Todor Pichurov

Xenetic Biosciences Inc (OTCMKTS:XBIO) Buoyed by Opko Health Investment

by Todor Pichurov February 15, 2016

On Friday the share price of Xenetic Biosciences Inc (OTCMKTS:XBIO, XBIO message board) went through the roof as the stock shifted its biggest daily volume ever. After an even bigger intraday spike, by the closing bell XBIO found itself 63% up at $0.36 per share. The reason for this sudden shift and the tidal wave of share volume is simple – Dr. Frost's Opko Health acquired a significant chunk of XBIO.

While there is no filing from XBIO just yet, the newswires lit up on Friday, with XBIO putting up PR announcing NYSE-traded Opko Health Inc (NYSE:OPK) acquired a 6.3% interest in the OTC company. Dr. Phillip Frost, CEO of Opko Health, is something of a superstar in the world of biopharma and where he goes, investors love to follow. In this sense, it's quite understandable that XBIO went from multiple zero-volume days and just a few thousand shares per day in its last month to an all-time volume record of 813 thousand shares traded on Friday.

The company's last filing is a quarterly for the period ended September 2015 and contains the following:

  • $1.2 million in cash
  • $6.1 million in current liabilities
  • zero in revenues
  • $5.3 million in quarterly net loss

Dr. Frost explained Opko's investment in XBIO with a strong belief in “the science and the clinical strategy” XBIO employs and their potential to create shareholder value.

While Frost no doubt has a significant following among investors who often try to match him blow for blow, that's not to say that everything OPK's CEO touches instantly turns to gold. Frost, through Opko Health, invested over $11 million in MabVax Therapeutics Inc (OTCMKTS:MBVX) in early 2015. The news sent MBVX over $4 per share. Yesterday MBVX closed at $0.53 per share. On the other hand, Frost has also been a long-time supported of Pershing Gold Corp – a company that uplisted to the NASDAQ and is now trading at $4.70 per share.

The last three price climbs XBIO charted over the past six months were all followed by what looks like relatively quick and aggressive cash-outs. Whether the stock will manage to hold its ground after this last run remains to be seen.

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