Baoh: The Visitor 1989

Doress, a Japanese "black projects" organization, has been gathering psionics and creating biological weapons to "make Japan superior". When one of the biological experiments, BAOH, a parasite living inside 17-year-old Ikuro, escapes with a psychic young girl named Sumire, Doress will do anything to get the boy and girl back. The only problem for them is that BAOH has the ability to alter its host into a living death machine in order to keep it alive. BAOH "awakens" to its "Armed Defense Phenomenons", giving Ikuro acid-tipped claws, bio-regeneration, and super-strength. But Doress takes the girl, and BAOH, alongside its host, must fight an army of commandos and psionics to get her back.