Financial Position - As of December 31, 2025, Xencor, Inc. estimates its cash, cash equivalents, and marketable debt securities to be approximately $611 million, a decrease from $706.7 million as of December 31, 2024[4] - The company expects to have sufficient cash to fund its research and development programs and operations through 2028 based on current operating plans[4]

PASADENA, Calif.--(BUSINESS WIRE)--Xencor, Inc. (NASDAQ:XNCR), a clinical-stage biopharmaceutical company developing engineered antibodies for the treatment of cancer and autoimmune diseases, today announced corporate priorities and 2026 pipeline advancement milestones for its clinical-stage portfolio of novel XmAb® drug candidates. "Xencor designs proteins that enable potential first-in-class and best-in- class medicines for patients, and we are building on momentum from 2025, when we presented. ...

Core Viewpoint - The article does not provide any specific insights or analysis related to a company or industry, focusing instead on the author's qualifications and disclosures [1][2][3]. Group 1 - The author holds multiple degrees in Electronics and Telecommunication Engineering, Computer Science, Business Management, and Computer Applications from various institutions [1]. - The author collaborates professionally with another individual, ensuring that analyses are conducted independently [1]. - There is a clear disclosure stating that the author has no financial positions in any mentioned companies and does not plan to initiate any within the next 72 hours [2].

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Summary of Xencor Conference Call Company Overview - **Company**: Xencor - **Industry**: Biopharmaceuticals, specifically focusing on protein engineering and bispecific antibodies - **Key Executives Present**: Basil Dahiyat (Co-founder, President, CEO), Dane Leone (Executive Vice President, Chief Strategy Officer) [1][2] Core Points and Arguments Expansion into Autoimmune Diseases - Xencor is re-entering the autoimmune disease space with the development of the anti-TL1A antibody, XmAb 942, after previously focusing on oncology [3][4] - The decision to return to autoimmune diseases was driven by the potential for creating differentiated clinical assets [4] - XmAb 942 is designed for high potency and long half-life, targeting TL1A, an inflammatory cytokine linked to inflammatory bowel diseases (IBD) [5][6] Clinical Data and Studies - Phase 1 data for XmAb 942 showed a half-life of over 71 days and sustained suppression of TL1A for over 16 weeks in healthy volunteers [7] - The ongoing Phase 2b study, XENITH-UC, aims to enroll approximately 220 patients to assess clinical remission in ulcerative colitis [11] - The study is designed to facilitate a seamless transition into registration-enabling studies, aiming for a competitive time to market [9] Future Developments - XmAb 412, a bispecific antibody targeting TL1A and IL-23, is expected to enter first-in-human trials in 2026 [10][12] - The combination of TL1A and IL-23 targeting is anticipated to enhance efficacy in IBD treatment [12][13] Other Autoimmune Programs - Xencor is also developing plamotamab, a CD20/CD3 bispecific antibody for rheumatoid arthritis (RA), leveraging their oncology experience to optimize dosing regimens [14][15] - XmAb 657, another bispecific targeting CD19/CD3, is in early development stages for myositis and other indications [16][17] Oncology Developments - XmAb 819, targeting ENPP3 in renal cell carcinoma, has shown a 25% overall response rate in heavily pretreated patients [23][24] - The company plans to expand the use of XmAb 819 into colorectal and lung cancers by 2026 [23][25] - XmAb 541, targeting CLDN6 in gynecologic tumors, is also progressing with early promising data [26][27] Partnerships and Collaborations - Xencor has established partnerships with Amgen and Johnson & Johnson, focusing on bispecific antibodies and other therapeutic areas [30][31] - The partnership with Amgen includes a phase 3 trial for Xaluritamig in metastatic castration-resistant prostate cancer, with potential royalties and milestones for Xencor [30] - Future partnerships are anticipated to enhance Xencor's capabilities and market reach [34][35] Additional Important Information - Xencor aims to be a commercial company, focusing on maximizing stakeholder value through strategic clinical development and potential partnerships [34][36] - The company is well-funded through 2028, allowing for flexibility in decision-making regarding asset management and partnerships [36] This summary encapsulates the key points discussed during the conference call, highlighting Xencor's strategic direction, clinical developments, and partnership strategies in the biopharmaceutical industry.

Summary of Xencor Fireside Chat Company Overview - **Company**: Xencor - **Industry**: Biotechnology, specifically focusing on oncology and autoimmune diseases Key Points and Arguments Expansion into Immunology - Xencor has expanded into immunology, focusing on delivering new medicines for oncology and autoimmune diseases using differentiated molecules designed with XmAb protein design tools [2][3] Oncology Pipeline Developments - The company is focusing its oncology portfolio on T-cell engagers, with significant progress in various programs: - XmAb 942, a long-acting TL1A antibody, has completed phase one and is now in a phase 2b study for ulcerative colitis [4] - XmAb 819, an ENPP3xCD3 T-cell engager for renal cell carcinoma, showed a 25% objective response rate in a heavily pretreated population [5] - Plans for phase three trials are expected next year, with pivotal studies anticipated in 2027 [6] Autoimmune Disease Focus - Xencor is advancing its autoimmune pipeline with promising candidates: - Plamotamab (CD20xCD3) is in phase one for rheumatoid arthritis (RA) [4] - The company aims to leverage its experience from oncology to develop effective dosing regimens for autoimmune diseases [27] Differentiation of XmAb 942 - XmAb 942 is designed to maximize drug exposure and potency, potentially making it best-in-class in the crowded anti-TL1A space [12][15] - The development plan emphasizes a single subcutaneous administration every 12 weeks, enhancing convenience for patients [15] Competitive Landscape in IBD - Xencor's products are positioned in a competitive market for inflammatory bowel disease (IBD), with a focus on differentiating their offerings from first-generation drugs [24] - The company anticipates a future with various biosimilar options, enhancing treatment flexibility [25] Clinical Execution and Milestones - The company emphasizes a strong focus on clinical execution, aiming to deliver timely updates and milestones to investors [7][8] - The phase 2b study for XmAb 942 is designed to efficiently identify a recommended phase three dose [16] Insights on Plamotamab and CD19/CD20 Programs - Xencor is applying learnings from oncology to develop Plamotamab for RA, focusing on ease of administration and deep B-cell depletion [27][28] - The company is exploring indications that address high unmet needs, particularly in RA, with a focus on safety and efficacy [32] Other Important Content - Xencor's strategy includes a rigorous approach to clinical trial design, aiming for efficient pathways to market [16][22] - The company is optimistic about the potential of bispecific therapies to enhance treatment outcomes in autoimmune diseases [19][20] - The leadership expressed excitement about the upcoming data and milestones, indicating a proactive approach to investor communication [17][18]

Core Insights - Xencor reported a quarterly loss of $0.08 per share, significantly better than the Zacks Consensus Estimate of a loss of $0.72, and an improvement from a loss of $0.71 per share a year ago [1][2] - The earnings surprise of +88.89% indicates a positive trend, as the company has surpassed consensus EPS estimates three times over the last four quarters [2] - Revenue for the quarter was $21 million, missing the Zacks Consensus Estimate by 18.15%, but showing growth from $10.71 million year-over-year [3] Financial Performance - The company has shown a mixed trend in estimate revisions ahead of the earnings release, currently holding a Zacks Rank 3 (Hold), suggesting expected performance in line with the market [7] - Current consensus EPS estimate for the upcoming quarter is -$0.84 on revenues of $19.93 million, and for the current fiscal year, it is -$2.59 on revenues of $121.95 million [8] Industry Context - Xencor operates within the Zacks Medical - Drugs industry, which is currently in the top 40% of over 250 Zacks industries, indicating a favorable industry outlook [9] - The performance of Xencor's stock may be influenced by the overall industry trends, as the top 50% of Zacks-ranked industries outperform the bottom 50% by more than 2 to 1 [9] Future Outlook - The sustainability of Xencor's stock price movement will depend on management's commentary during the earnings call and future earnings expectations [4] - Investors are keen to see how estimates for the coming quarters and the current fiscal year will change following the recent earnings report [5][8]

Drug Development and Clinical Trials - The company is conducting Phase 1 and Phase 2 studies for a broad portfolio of XmAb drug candidates targeting serious diseases, including cancer [106]. - XmAb819 demonstrated a 25% partial response rate and a 70% disease control rate in a Phase 1 study with 69 heavily pre-treated patients [112]. - XmAb942, an investigational anti-TL1A antibody, showed a human half-life of over 71 days, supporting a 12-week dosing interval during maintenance treatment [116]. - Zenas BioPharma's obexelimab met the primary endpoint in the Phase 2 MoonStone trial for relapsing multiple sclerosis, utilizing the company's XmAb technology [124]. - Amgen initiated the Phase 3 Xalience study of xaluritamig in chemotherapy-naïve metastatic castration-resistant prostate cancer in Q3 2025 [126]. - Astellas presented the first clinical data from ASP2138 for CLDN18.2-positive cancers at the ESMO congress in October 2025 [127]. - XmAb657 demonstrated over 99.98% B-cell reduction in non-human primate studies, with a half-life estimated at 15 days, indicating potential for durable B-cell depletion [119]. - The company is evaluating plamotamab in rheumatoid arthritis after receiving regulatory authorization for a Phase 1b study in Q2 2025 [117]. Financial Performance - Total revenue for the three months ended September 30, 2025, increased by $3.2 million, and for the nine months, it increased by $39.6 million compared to the same periods in 2024, primarily driven by revenue recognition from Alexion and Incyte license agreements [138]. - Non-cash royalty revenue from Alexion was $18.7 million for the three months ended September 30, 2025, compared to $15.7 million in 2024, and $51.0 million for the nine months ended September 30, 2025, compared to $42.1 million in 2024 [140]. - Research and development expenses decreased by $3.9 million for the three months and $2.0 million for the nine months ended September 30, 2025, compared to the same periods in 2024, primarily due to lower stock-based compensation [145]. - Other income increased by $33.7 million for the three months and $63.6 million for the nine months ended September 30, 2025, compared to the same periods in 2024, driven by realized and unrealized gains from marketable equity securities [147]. - Cash flow used in operating activities was $83.4 million for the nine months ended September 30, 2025, a decrease of $68.9 million compared to $152.4 million in 2024, primarily due to higher milestone receipts [149]. - As of September 30, 2025, the company had $633.9 million in cash, cash equivalents, and marketable debt securities, down from $706.7 million as of December 31, 2024 [151]. - Total operating expenses for the three months ended September 30, 2025, were $68.5 million, a decrease of $4.5 million compared to $72.9 million in 2024 [137]. - The operating loss for the three months ended September 30, 2025, was $47.5 million, an improvement of $7.7 million compared to $55.2 million in 2024 [137]. - The company recognized $2.3 million in non-cash royalty revenue from Incyte for the three months ended September 30, 2025, compared to $2.1 million in 2024 [143]. - The FDA approved Incyte's supplemental biologics license application in June 2025, triggering a $25.0 million milestone payment to the company [142]. Future Outlook and Financial Strategy - The company aims to retain major economic interests in partnerships, including profit-sharing and co-development options [121]. - The company expects to continue receiving payments for research and development services, but future milestone and contingent payments remain uncertain [153]. - Current financial resources are believed to be sufficient to fund operations for at least the next twelve months [154]. - The company has not generated any revenue from product sales and does not expect to do so until regulatory approval is obtained [155]. - Operating expenses are expected to increase due to ongoing clinical and preclinical development of product candidates [155]. - Existing cash, cash equivalents, marketable securities, and potential milestone payments are projected to fund operating expenses and capital expenditures into 2028 [157]. - There were no material changes to specific contractual obligations during the three and nine months ended September 30, 2025 [158]. - There have been no material changes in the company's exposure to market risk since the last annual report [160]. Capital Raising Activities - The company has entered into a Sales Agreement to offer and sell up to $200.0 million in shares of common stock, with no shares issued as of September 30, 2025 [152].

Financial Performance - Xencor reported third quarter 2025 revenue of $21.0 million, up 17.9% from $17.8 million in the same period of 2024[10] - Revenue from collaborations, milestones, and royalties for Q3 2025 was $20.999 million, up from $17.796 million in Q3 2024, representing a 17.4% increase[21] - Other income increased significantly to $41.5 million in Q3 2025 from $7.8 million in Q3 2024, primarily due to unrealized gains from marketable equity securities[13] - The operating loss for Q3 2025 was $47.519 million, improved from a loss of $55.197 million in Q3 2024[21] - The net loss attributable to Xencor, Inc. for Q3 2025 was $6.027 million, compared to a net loss of $46.288 million in Q3 2024[21] - The net loss per share attributable to Xencor, Inc. for Q3 2025 was $0.08, a significant improvement from $0.72 in Q3 2024[21] - Comprehensive loss for Q3 2025 was $5.127 million, compared to a comprehensive loss of $44.990 million in Q3 2024[21] Expenses - Research and development expenses decreased to $54.4 million in Q3 2025 from $58.2 million in Q3 2024, reflecting lower stock-based compensation and reduced costs for winding down programs[11] - General and administrative expenses remained stable at $14.2 million in Q3 2025 compared to $14.8 million in Q3 2024[12] - Total operating expenses for Q3 2025 were $68.518 million, a decrease of 6.8% from $72.993 million in Q3 2024[21] - Research and development expenses for the nine months ended September 30, 2025, were $174.610 million, slightly down from $176.630 million in the same period of 2024[21] - General and administrative expenses for the nine months ended September 30, 2025, were $46.603 million, compared to $46.300 million in the same period of 2024[21] Cash and Financial Position - Cash, cash equivalents, and marketable debt securities totaled $633.9 million as of September 30, 2025, down from $706.7 million as of December 31, 2024[10] - Xencor expects to end 2025 with between $570 million and $590 million in cash, sufficient to fund operations into 2028[9] Clinical Development - XmAb819 and XmAb541 are advancing through Phase 1 studies, with pivotal studies expected to initiate in 2027[3] - The first patient was dosed in the Phase 2b XENITH-UC study of XmAb942 for inflammatory bowel disease, aiming to identify a pivotal dose regimen[3] - Xencor is eligible for up to $225 million in milestone payments from Amgen related to the XALience study and additional royalties on net sales[9] Share Information - The weighted-average shares used in calculating net loss per share (basic and diluted) increased to 74,413 in Q3 2025 from 64,023 in Q3 2024[21]

Core Insights - Xencor is advancing its clinical trial programs with two first-in-class bispecific antibodies, XmAb819 and XmAb541, targeting specific cancer types, showing promising initial results [1][7] - The company reported significant revenue growth in Q2 2025, primarily from milestone payments and royalties, indicating a strong financial position despite not having marketed drugs [2] - Xencor has a diverse pipeline with over a dozen drug candidates at various development stages, showcasing its robust research capabilities [3][4] Group 1: Clinical Development - XmAb819 targets clear cell renal cell carcinoma (ccRCC) and has shown a 25% overall response rate in heavily pretreated patients during Phase 1 trials [1] - XmAb541 is under evaluation for advanced solid tumors expressing CLDN6, with ongoing Phase 1 dose escalation studies [7] - The company plans to recommend a Phase 3 dose for XmAb819 next year and initiate pivotal studies by 2027 [1] Group 2: Financial Performance - Xencor's Q2 2025 revenue reached $43.6 million, an 82% increase compared to Q2 2024, driven by milestone payments and non-cash royalties [2] - The company does not market any approved drugs directly but benefits from royalties on licensed products [2] Group 3: Analyst Sentiment - Despite a 39% decline in stock price year-to-date, analysts like Barclays's Etzer Darout have upgraded Xencor to Overweight, citing positive updates on its pipeline [8][9] - The consensus rating for Xencor stock is Strong Buy, with 12 Buy ratings and a price target suggesting an 85% potential gain over the next 12 months [11]