FORM 4 Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP OF SECURITIES Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public Utility Holding Company Act of 1935 or Section 30(h) of the Investment Company Act of 1940

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(Print or Type Responses)

1. Name and Address of Reporting Person * VASELLA DANIEL   2. Issuer Name and Ticker or Trading Symbol XBiotech Inc. [XBIT] 5. Relationship of Reporting Person(s) to Issuer (Check all applicable) __X__ Director _____ 10% Owner _____ Officer (give title below) _____ Other (specify below) (Last) (First) (Middle) 8201 EAST RIVERSIDE DRIVE, BUILDING 4, SUITE 100 3. Date of Earliest Transaction (Month/Day/Year) 12/01/2016 (Street) AUSTIN, TX 78744 4. If Amendment, Date Original Filed(Month/Day/Year) 6. Individual or Joint/Group Filing(Check Applicable Line) _X_ Form filed by One Reporting Person ___ Form filed by More than One Reporting Person (City) (State) (Zip) Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned

1.Title of Security (Instr. 3) 2. Transaction Date (Month/Day/Year) 2A. Deemed Execution Date, if any (Month/Day/Year) 3. Transaction Code (Instr. 8) 4. Securities Acquired (A) or Disposed of (D) (Instr. 3, 4 and 5) 5. Amount of Securities Beneficially Owned Following Reported Transaction(s) (Instr. 3 and 4) 6. Ownership Form: Direct (D) or Indirect (I) (Instr. 4) 7. Nature of Indirect Beneficial Ownership (Instr. 4) Code V Amount (A) or (D) Price

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Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned
(e.g., puts, calls, warrants, options, convertible securities)

1. Title of Derivative Security (Instr. 3)

2. Conversion or Exercise Price of Derivative Security

3. Transaction Date (Month/Day/Year)

3A. Deemed Execution Date, if any (Month/Day/Year)

4. Transaction Code (Instr. 8)

5. Number of Derivative Securities Acquired (A) or Disposed of (D) (Instr. 3, 4, and 5)

6. Date Exercisable and Expiration Date (Month/Day/Year)

7. Title and Amount of Underlying Securities (Instr. 3 and 4)

8. Price of Derivative Security (Instr. 5)

9. Number of Derivative Securities Beneficially Owned Following Reported Transaction(s) (Instr. 4)

10. Ownership Form of Derivative Security: Direct (D) or Indirect (I) (Instr. 4)

11. Nature of Indirect Beneficial Ownership (Instr. 4)

Code

V

(A)

(D)

Date Exercisable

Expiration Date

Title

Amount or Number of Shares

Stock Option

$ 13.27

12/01/2016

A

23,867

12/01/2016

11/30/2026

Common Stock

23,867

$ 0

23,867

D

Stock Option (1)

$ 15

12/01/2016

D

125,000

11/04/2014

11/03/2019

Common Stock

125,000

$ 0

0

D

Stock Option (1)

$ 15

12/01/2016

A

125,000

11/04/2014

11/03/2024

Common Stock

125,000

$ 0

125,000

D

Reporting Owners

Reporting Owner Name / Address	Relationships
	Director	10% Owner	Officer	Other
VASELLA DANIEL 8201 EAST RIVERSIDE DRIVE BUILDING 4, SUITE 100 AUSTIN, TX 78744	X

Signatures

/s/ Daniel Vasella		12/08/2016
**Signature of Reporting Person		Date

Explanation of Responses:

*	If the form is filed by more than one reporting person, see Instruction 4(b)(v).
**	Intentional misstatements or omissions of facts constitute Federal Criminal Violations. See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
(1)	On 12/1/2016, regarding the 125,000 stock options previously granted to the Reporting Person on 11/4/2014, the Option Agreement was amended in order to extend the Expiration Date to the tenth anniversary of the date of grant and to confirm that following a Termination, the exercise period with respect to vested Options will remain in effect until the Expiration Date. Therefore the original option grant is deemed canceled and a new option grant is re-issued with the updated terms. The expiration date for the 125,000 options granted on 11/4/2014 was originally reported incorrectly on a Form 3 filed with the SEC on 4/14/2015. The accurate expiration date was 11/03/2019 at the time of the filing.

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