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Baxter International Inc.

Xenetic are working together with Baxter International Inc. to develop a novel series of polysialylated blood coagulation factors, including Factor VIII.  This programme, which started in earnest in 2006 is using PolyXen technology to conjugate polysialic acid (PSA) to therapeutic blood-clotting factors with the aim being to improve the pharmacokinetic profile and extend the active life of these biologic molecules.  In 2010, Xenetic and Baxter announced positive results with a PSA-Factor VIII candidate in a series of preclinical studies and the selection of a lead candidate, providing confidence in the programme's potential to transition into clinical development.  The success of the Baxter programme will ultimately result in the development of novel longer acting therapies for the treatment of haemophilia A and B and for patients with other blood clotting disorders thereby increasing the quality of life for sufferers of these conditions.

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Pharmsynthez ZAO

Xenetic are working in partnership with Pharmsynthez, a leading Russian private research-based pharmaceutical company, to apply ImuXen and PolyXen technologies to six drug and vaccine candidates. Xenetic are providing scientific and technological know how to Pharmsynthez scientists to allow candidate optimisation.  Together we will utilise our ImuXen technology to create three enhanced vaccine candidates for secondary progressive multiple sclerosis, HIV and non-Hodgkin's lymphoma.  Similarly, our PolyXen technology will be used to create three pharmaceutical candidates for treatment of cystic fibrosis, acute myeloid leukaemia, non-Hodgkin's lymphoma and type 2 diabetes.  A number of these product candidates target rare disease indications (so called orphan drugs) and candidates that are progressed for these indications could be eligible for an abbreviated clinical pathway under EMEA and FDA Orphan Drug legislation and subsequent market exclusivity for ten years and seven years respectively.  Whilst the clinical proof of concept trials and any full clinical trial programmes in the Russian Federation will be funded by Pharmsynthez , Xenetic will have access to all relevant clinical data arising from these studies. This will allow us to to conduct further trials and seek marketing authorisation for products arising from the collaboration in other global territories.