Financial Data and Key Metrics Changes - For Q2 2020, revenues were $13.1 million, a decrease from $19.5 million in Q2 2019 [48] - For the first six months of 2020, revenues totaled $45.5 million, down from $131.4 million in the same period in 2019 [49] - The net loss for Q2 2020 was $35 million, or $0.61 per share, compared to a net loss of $16 million, or $0.28 per share in Q2 2019 [53] - For the first six months of 2020, the net loss was $43.1 million, or $0.76 per share, compared to net income of $64 million, or $1.10 per share in the same period in 2019 [54] - Cash and cash equivalents as of June 30, 2020, totaled $587.4 million, down from $601.3 million at the end of 2019 [47] Business Line Data and Key Metrics Changes - Research and development expenditures for Q2 2020 were $43.5 million, up from $33.3 million in Q2 2019 [50] - General and administrative expenses for Q2 2020 were $7.2 million, compared to $5.8 million in Q2 2019 [52] - The increase in R&D spending was primarily due to advancements in clinical programs such as plamotamab and XmAb2717 [51] Market Data and Key Metrics Changes - The company has 11 ongoing partnerships for XmAb technology, resulting in two marketed products and seven clinical stage candidates [15] - The partnership with Alexion's Ultomiris continues to receive marketing authorizations worldwide, with the latest approval for atypical hemolytic uremic syndrome [23] Company Strategy and Development Direction - The company is focusing on expanding its XmAb bispecific platform to create antibodies targeting multiple mechanisms simultaneously [10] - Xencor aims to selectively license access to its XmAb technologies for developing antibodies, emphasizing the importance of partnerships to complement its internal portfolio [22] - The recent FDA approval of MorphoSys's Tafasitamab, a product developed under Xencor's technology, highlights the potential of its platform [17] Management's Comments on Operating Environment and Future Outlook - Management noted that the COVID-19 pandemic did not significantly disrupt patient enrollment in ongoing clinical trials, although some trial initiations were delayed [11] - The company expects to have sufficient cash to fund operations into 2024, projecting a year-end cash balance between $525 million and $575 million [56] Other Important Information - The company is advancing its pre-clinical programs, including XmAb30819, which targets ENPP3 and is expected to file an IND in 2021 [31] - The collaboration with Atreca aims to develop bispecific antibodies targeting novel tumor antigens, leveraging Atreca's discovery platform [33] Q&A Session Summary Question: Can you provide details on the royalties and future milestones related to Monjuvi? - The royalties are in the high-single to low-double digit range, with significant milestones for development and sales in oncology [61][62] Question: What data can we expect from Tidutamab? - The upcoming data will focus on safety and efficacy in the neuroendocrine tumor population, with a low standard-of-care response rate around 10% [70][71] Question: What is the development strategy for plamotamab? - The company sees promising activity in late-line lymphoma and plans to announce specific trials for combination and monotherapy approaches later this year [84][85] Question: Can you comment on the adverse events observed with AMG 424? - The adverse events were likely CD38 mediated, and the company is assessing potential next steps for the program [89] Question: What is the status of the Atreca collaboration? - The collaboration utilizes existing antibodies from Atreca's screening work, with ongoing discovery activities to replenish the antibody basket [140][141]

Clinical Development - The company has 17 antibody and cytokine drug candidates in clinical trials, with additional candidates expected to enter the clinic within the next year[127] - The company is currently enrolling patients in six clinical programs, with some experiencing slower patient enrollment due to COVID-19[123] - The company is advancing three CD3 bispecific antibody candidates in Phase 1 studies: vibecotamab, plamotamab, and tidutamab[128] - XmAb20717, a TME activator candidate, is currently enrolling patients in a Phase 1 study and has shown promising initial dose-escalation data[134] Financial Performance - Total revenues for the three months ended June 30, 2020, were $13.1 million, a decrease of $6.4 million compared to $19.5 million in the same period in 2019[149] - Total revenues for the six months ended June 30, 2020, were $45.5 million, a decrease of $85.9 million compared to $131.4 million in the same period of 2019[156] - The net loss for the three months ended June 30, 2020, was $35.0 million, compared to a net loss of $16.0 million in the same period in 2019, reflecting an increase of 118.8%[149] - Net loss for the six months ended June 30, 2020, was $43.0 million, compared to a net income of $64.0 million in 2019, a change of $107.0 million[156] Revenue Sources - Revenue from existing partnerships, including Alexion and Gilead, was recognized at $3.8 million and $7.5 million, respectively, for the quarter ended June 30, 2020[124] - The company received total payments of $9.6 million and $13.5 million from licensing transactions with Aimmune and Gilead in 2020[138] - Research collaboration revenue decreased from $14.4 million in Q2 2019 to $1.5 million in Q2 2020, a decline of 91.6%[149] - Licensing revenue increased to $7.5 million in Q2 2020, compared to no licensing revenue in Q2 2019[149] - Research collaboration revenue decreased from $14.7 million in 2019 to $2.4 million in 2020, a decline of $12.3 million[156] - Licensing revenue fell from $111.6 million in 2019 to $23.1 million in 2020, a decrease of $88.5 million[156] Expenses - Research and development expenses rose to $43.5 million in Q2 2020, up $10.2 million from $33.3 million in Q2 2019, primarily due to increased spending on plamotamab and XmAb20717 programs[151][152] - Operating expenses increased by $19.0 million, from $72.8 million in 2019 to $91.8 million in 2020[156] - Research and development expenses rose by $15.9 million, totaling $77.4 million in 2020 compared to $61.5 million in 2019[159] - General and administrative expenses increased to $7.2 million in Q2 2020, up $1.4 million from $5.8 million in Q2 2019, mainly due to higher staffing and professional fees[153][154] - General and administrative expenses increased by $3.1 million, from $11.3 million in 2019 to $14.4 million in 2020[161] Cash Position - As of June 30, 2020, the company had $587.4 million in cash, cash equivalents, and marketable securities, down from $601.3 million at the end of 2019[169] - Cash used in operating activities was $18.2 million in 2020, a decrease of $108.7 million compared to cash provided of $90.4 million in 2019[165] - The company expects existing cash and potential milestone payments to fund operations into 2024, although this is subject to uncertainty due to ongoing clinical development and the COVID-19 pandemic[172] Intellectual Property - The company has over 1,000 issued and pending patents worldwide to protect its XmAb technology platform and drug candidates[146] Collaborations and Milestones - The collaboration with Atreca involves a three-year research program to develop CD3 bispecific antibodies, with both companies sharing 50% of costs and profits[139] - The FDA approved MorphoSys' Monjuvi (tafasitamab-cxix) in July 2020, which will result in a $25.0 million milestone payment to the company and potential royalties on net sales[146] Tax and Receivables - The company has recorded a receivable of $0.8 million related to the corporate minimum tax credit, which will be refunded in 2020[120] - The company is eligible to receive a mid-single digit royalty on net sales of approved products for the VIR-7831 candidate developed by partner Vir Biotechnology[124]

Xencor, Inc. (NASDAQ:XNCR) Q1 2020 Earnings Conference Call May 7, 2020 4:30 PM ET Company Participants Charles Liles - Associate Director and Head, Corporate Communications and IR Bassil Dahiyat - President and CEO John Kuch - SVP and CFO Allen Yeng - SVP and Chief Medical Officer Conference Call Participants Jonathan Chang - SVB Leerink Arlinda Lee - Canaccord Gabriel Fung - Mizuho Securities Ed Tenthoff - Piper Jaffray Etzer Darout - Guggenheim Securities Operator Ladies and gentlemen, thank you for stan ...

[Special Note Regarding Forward-Looking Statements](index=3&type=section&id=SPECIAL%20NOTE%20REGARDING%20FORWARD%20LOOKING%20STATEMENTS) Forward-looking statements are subject to risks and uncertainties, including COVID-19 impacts, and the company disclaims any obligation to update them - Forward-looking statements are based on current expectations and projections, subject to risks and uncertainties that could cause actual results to differ materially[10](index=10&type=chunk) - Key risk factors include the effects of the COVID-19 pandemic, plans for product candidate development and commercialization, timing of regulatory approvals, estimates for expenses and revenue, competition, and intellectual property position[10](index=10&type=chunk) - The company does not undertake any obligation to update or revise forward-looking statements[12](index=12&type=chunk) [Part I. Financial Information](index=6&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) This part presents Xencor's unaudited interim financial statements, management's discussion, market risk, and controls, detailing financial performance and COVID-19 considerations [Item 1. Financial Statements](index=6&type=section&id=Item%201.%20Financial%20Statements) This section provides unaudited interim financial statements, including Balance Sheets, Statements of Comprehensive Income (Loss), Statement of Stockholders' Equity, Statements of Cash Flows, and detailed notes [Balance Sheets](index=6&type=section&id=Balance%20Sheets%20as%20of%20March%2031%2C%202020%20(unaudited)%20and%20December%2031%2C%202019) Cash and current marketable securities increased, leading to a rise in total current assets, while total assets slightly decreased and liabilities remained stable | Asset/Liability Category | March 31, 2020 (in thousands) | December 31, 2019 (in thousands) | Change (in thousands) | | :----------------------- | :---------------------------- | :------------------------------- | :-------------------- | | Cash and cash equivalents | $73,808 | $50,312 | $23,496 | | Marketable securities (current) | $497,841 | $479,470 | $18,371 | | Total current assets | $588,107 | $558,405 | $29,702 | | Total assets | $666,963 | $670,250 | $(3,287) | | Total current liabilities | $65,917 | $66,558 | $(641) | | Total liabilities | $73,958 | $77,049 | $(3,091) | | Total stockholders' equity | $593,005 | $593,201 | $(196) | [Statements of Comprehensive Income (Loss)](index=7&type=section&id=Statements%20of%20Comprehensive%20Income%20(Loss)%20for%20the%20Three%20Months%20Ended%20March%2031%2C%202020%20and%202019%20(unaudited)) Revenue significantly decreased year-over-year, shifting from net income to a net loss, primarily due to a non-recurring licensing payment in Q1 2019 and increased operating expenses | Metric (in thousands) | Three Months Ended March 31, 2020 | Three Months Ended March 31, 2019 | Change (YoY) | | :-------------------- | :-------------------------------- | :-------------------------------- | :----------- | | Revenue | $32,385 | $111,939 | $(79,554) | | R&D Expenses | $33,943 | $28,183 | $5,760 | | G&A Expenses | $7,219 | $5,512 | $1,707 | | Total Operating Expenses | $41,162 | $33,695 | $7,467 | | Income (loss) from operations | $(8,777) | $78,244 | $(87,021) | | Net income (loss) | $(8,074) | $80,045 | $(88,119) | | Basic EPS | $(0.14) | $1.42 | $(1.56) | | Diluted EPS | $(0.14) | $1.38 | $(1.52) | [Statement of Stockholders' Equity](index=8&type=section&id=Statement%20of%20Stockholders'%20Equity%20for%20the%20Three%20Months%20Ended%20March%2031%2C%202020%20and%202019%20(unaudited)) Total stockholders' equity saw a minor decrease, influenced by a comprehensive loss, while additional paid-in capital increased due to stock award exercises and stock-based compensation | Stockholders' Equity Item (in thousands) | December 31, 2019 | March 31, 2020 | Change | | :--------------------------------------- | :---------------- | :------------- | :----- | | Common Stock (shares) | 56,902,301 | 57,001,253 | 98,952 | | Common Stock (amount) | $569 | $570 | $1 | | Additional Paid-in Capital | $887,873 | $895,855 | $7,982 | | Accumulated Other Comprehensive Income (Loss) | $1,161 | $1,056 | $(105) | | Accumulated Deficit | $(296,402) | $(304,476) | $(8,074) | | Total Stockholders' Equity | $593,201 | $593,005 | $(196) | [Statements of Cash Flows](index=9&type=section&id=Statements%20of%20Cash%20Flows%20for%20the%20Three%20Months%20Ended%20March%2031%2C%202020%20and%202019%20(unaudited)) Cash flow from operating activities significantly improved, shifting from a net use of **$18.7 million** in Q1 2019 to a net provision of **$9.5 million** in Q1 2020, primarily driven by upfront and milestone payments from collaborations, leading to a substantial net increase in cash and cash equivalents | Cash Flow Activity (in thousands) | Three Months Ended March 31, 2020 | Three Months Ended March 31, 2019 | Change (YoY) | | :-------------------------------- | :-------------------------------- | :-------------------------------- | :----------- | | Operating Activities | $9,460 | $(18,728) | $28,188 | | Investing Activities | $12,565 | $13,673 | $(1,108) | | Financing Activities | $1,471 | $667 | $804 | | Net Increase (Decrease) in Cash | $23,496 | $(4,388) | $27,884 | | Cash and cash equivalents, end of period | $73,808 | $21,858 | $51,950 | [Notes to Financial Statements](index=10&type=section&id=Notes%20to%20Financial%20Statements%20(unaudited)) This section details accounting policies, fair value measurements, stock-based compensation, lease obligations, and collaboration agreements, noting no material impact from new accounting standards and the effect of the CARES Act on income taxes - The financial statements are prepared in accordance with U.S. GAAP for interim financial information, including normal recurring adjustments and management estimates[26](index=26&type=chunk) - The company adopted several new accounting pronouncements effective January 1, 2020, none of which had a significant impact on the financial statements[35](index=35&type=chunk)[36](index=36&type=chunk)[37](index=37&type=chunk) Fair Value Hierarchy | Fair Value Hierarchy (in thousands) | March 31, 2020 Total Fair Value | March 31, 2020 Level 1 | March 31, 2020 Level 2 | December 31, 2019 Total Fair Value | December 31, 2019 Level 1 | December 31, 2019 Level 2 | | :---------------------------------- | :------------------------------ | :--------------------- | :--------------------- | :--------------------------------- | :------------------------ | :------------------------ | | Money Market Funds | $49,800 | $49,800 | $— | $32,009 | $32,009 | $— | | Corporate Securities | $332,691 | $— | $332,691 | $281,751 | $— | $281,751 | | Government Securities | $203,382 | $— | $203,382 | $269,245 | $— | $269,245 | | Equity Securities | $2,253 | $2,253 | $— | $— | $— | $— | | Total | $588,126 | $52,053 | $536,073 | $583,005 | $32,009 | $550,996 | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=35&type=section&id=Item%202.%20Management's%20Discussion%20and%

Xencor, Inc. (NASDAQ:XNCR) Q4 2019 Earnings Conference Call February 24, 2020 4:30 PM ET Corporate Participants Charles Liles - Associate Director and Head, Corporate Communications & Investor Relations Bassil Dahiyat - President and Chief Executive Officer John Kuch - Senior Vice President & Chief Financial Officer Allen Yeng - Chief Medical Officer Conference Call participants Alethia Young - Cantor Fitzgerald Ted Tenthoff - Piper Jaffray Mara Goldstein - Mizuho Gregory Renzo - RBC Capital Markets Arlinda ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2019 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 001-36182 Xencor, Inc. (Exact Name of Registrant as Specified in its Charter) Delaware (State or Other Jurisdiction of Incorporation or Or ...

Antibodies by Design™ XmAb® Antibody Therapeutics Corporate Overview November 2019 Forward-Looking Statements Certain statements contained in this presentation, other than statements of historical fact, may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include, but are not limited to, statements regarding Xencor's development plans and timelines; potential regulatory actions; expected use of cash resources; the timing and re ...

Xencor, Inc. (NASDAQ:XNCR) Q3 2019 Earnings Conference Call November 5, 2019 4:30 PM ET Company Participants Charles Liles - Associate Director and Head, Corporate Communications & Investor Relations Bassil Dahiyat - President & Chief Executive Officer John Kuch - Senior Vice President, Finance & Chief Financial Officer Conference Call Participants Alethia Young - Cantor Fitzgerald Etzer Darout - Guggenheim Securities Shanshan Xu - Berenberg Capital Market Mara Goldstein - Mizuho David Ruch - SVB Leerink Ar ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2019 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number: 001-36182 Xencor, Inc. (Exact Name of Registrant as Specified in its Charter) Delaware 20-1622502 (State or Other Jurisdiction of Incorporation o ...

Financial Data and Key Metrics Changes - Cash, cash equivalents, and marketable securities totaled $626.1 million at June 30, 2019, compared to $503.5 million at December 31, 2018, reflecting an increase due to upfront proceeds from collaborations [40] - Total revenue for Q2 2019 was $19.5 million, with total revenue for the first half of 2019 at $131.4 million, including revenue from Genentech, Astellas, and Alexion collaborations [41] - Net loss for Q2 2019 was $16 million, or $0.28 per share, compared to a net loss of $25.9 million, or $0.46 per share, for the same period in 2018 [44] - For the first half of 2019, net income was $64 million, or $1.10 per share, compared to a net loss of $55.4 million, or $1.07 per share, for the same period in 2018 [46] Business Line Data and Key Metrics Changes - Research and development expenses for Q2 2019 were $33.3 million, up from $23.3 million in Q2 2018, reflecting increased spending on CD3 bispecific antibody and cytokine development [42] - General and administrative expenses for Q2 2019 were $5.8 million, compared to $5 million in Q2 2018, with total G&A expenses for the first half of 2019 at $11.3 million, up from $9.5 million in the same period in 2018 [43] Market Data and Key Metrics Changes - The company reported low single-digit royalties of $1.1 million from Ultomiris for the first six months of 2019, based on sales reported by Alexion [50][51] Company Strategy and Development Direction - The company focuses on expanding its XmAb bispecific platform, with six Phase 1 clinical studies initiated over the past two years [11] - XmAb14045, a CD123 by CD3 bispecific antibody, is in an open-label Phase 1 study for relapsed or refractory acute myeloid leukemia, with initial patient dosing resuming after a partial clinical hold [14][15] - The company is also developing XmAb13676 for advanced B-cell malignancies and expects to present initial safety and clinical activity data later in 2019 [16][18] Management's Comments on Operating Environment and Future Outlook - Management emphasized the importance of balancing resource allocation to generate comprehensive data sets while advancing multiple programs [52] - The collaboration with Genentech is progressing smoothly, with no shifts in timing for the IL15 program [56][58] - Management expressed optimism about the potential of bispecific antibodies in oncology, particularly in addressing the challenges of solid tumors [114] Other Important Information - The company announced the retirement of Chief Medical Officer Paul Foster, with a search for a successor underway [34] - New appointments include Jeremy Grunstein as Vice President of Business Development and Kirk Rosemark as Vice President of Regulatory Affairs and Quality Assurance [36][37] Q&A Session Summary Question: Can you provide details on Ultomiris royalties? - Management confirmed that royalties for the first six months of the year were $1.1 million, which is a low single-digit percentage based on sales reported by Alexion [50][51] Question: Is there a delay in tumor microenvironment data readouts? - Management indicated that the desire for a fuller data set has led to a shift in reporting timelines, but everything remains on track [52] Question: How is the collaboration with Genentech progressing? - Management stated that the collaboration is seamless, with no shifts in timing for the program [56][58] Question: What are the expectations for initial Phase 1 data for XmAb 13676? - Management expects to have data showing safety and efficacy as the dose escalation progresses, but not all data will be complete by the report [64] Question: How does the company view the competitive landscape for B-cell malignancies? - Management noted that the landscape is dense, with established therapies setting a high bar, but believes CD3 bispecifics will be compelling [66] Question: What are the safety considerations for tumor microenvironment antibodies? - Management highlighted the focus on immune-related adverse events (IRAEs) and the need for a balance between efficacy and safety [108]