Group 1 - Taiwan Semiconductor Manufacturing Company (TSMC) reported better-than-expected earnings and provided an optimistic guidance, contributing to a positive opening in the stock market [1] - Xencor (XNCR) stock experienced an upgrade in its Relative Strength (RS) Rating from 62 to 78, indicating improved price performance [1] - Other companies such as Scholar Rock Holding, Ginkgo Bioworks Holdings, and Cytokinetics also received RS Rating upgrades, reflecting a trend of rising stock performance in the market [3] Group 2 - The IBD Relative Strength Rating is a tool that evaluates stock price behavior on a scale from 1 to 99, with higher scores indicating better performance [1] - Dianthus Therapeutics achieved an RS Rating upgrade, highlighting its strong performance in the medical sector [3] - The market is seeing a notable interest in medical stocks, with several companies joining IBD watchlists due to their recent performance [3]

Core Insights - Xencor, Inc. is a clinical-stage biopharmaceutical company focused on developing engineered antibodies for cancer and autoimmune diseases [1] - The company announced the upcoming presentation of initial results from a Phase 1 dose-escalation study of XmAb819, a bispecific antibody targeting ENPP3 and CD3, specifically in patients with clear cell renal cell carcinoma (ccRCC) [1] Company Overview - Xencor, Inc. is listed on NASDAQ under the ticker XNCR [1] - The company specializes in engineered antibodies, which are designed to treat various medical conditions, including cancer and autoimmune diseases [1] Study Details - The Phase 1 dose-escalation study focuses on XmAb819, which is a bispecific T-cell engaging antibody [1] - Initial results from this study will be presented at the AACR-NCI-EORTC Conference on Molecular Targets [1]

Group 1 - The article discusses the investment opportunities in Xencor (NASDAQ: XNCR) particularly in relation to its advancements in the RA program following promising NHL data [2] - The author operates the Biotech Analysis Central service, which provides in-depth analysis of over 600 biotech investing articles and a model portfolio of small and mid-cap stocks [2] - The service aims to assist healthcare investors in making informed decisions through live chat and a range of analysis and news reports [2] Group 2 - The article does not provide any specific financial data or performance metrics related to Xencor or the biotech industry [1][3][4]

Group 1 - The article discusses the investment opportunities in Xencor (NASDAQ: XNCR) particularly in relation to its advancements in the RA program following promising NHL data [2] - The author operates the Biotech Analysis Central service, which provides in-depth analysis of pharmaceutical companies and includes a library of over 600 biotech investing articles [2] - The service offers a model portfolio of more than 10 small and mid-cap stocks, along with live chat and various analysis reports to assist healthcare investors [2] Group 2 - The article does not contain any specific financial data or performance metrics related to Xencor or the broader biotech industry [1][3][4]

Core Viewpoint - Xencor (XNCR) shares experienced a significant increase of 7.3% in the last trading session, closing at $9.25, driven by strong trading volume and investor optimism regarding its engineered antibodies for cancer and autoimmune diseases [1] Company Summary - Xencor is projected to report a quarterly loss of $0.72 per share, reflecting a year-over-year change of -1.4% [2] - Expected revenues for Xencor are $25.66 million, which represents a substantial increase of 139.6% compared to the same quarter last year [2] - The consensus EPS estimate for Xencor has remained unchanged over the past 30 days, indicating a lack of recent earnings estimate revisions [4] Industry Summary - Xencor is part of the Zacks Medical - Drugs industry, where another company, Aclaris Therapeutics (ACRS), saw a decline of 1.6% in its last trading session, closing at $1.81 [5] - Aclaris is expected to report an EPS estimate of -$0.13, which is a change of -18.2% from the previous year [6]

Core Viewpoint - Barclays has initiated coverage of Xencor Inc. with an Underweight rating and a price target of $6.00, reflecting concerns over the company's internal pipeline despite its history of innovation in antibody technology and successful partnerships [1][2] Company Overview - Xencor Inc. is recognized for its innovative contributions to antibody technology and has established royalty-generating partnerships with companies like AstraZeneca and Incyte, which have provided a steady revenue stream and a robust balance sheet [1] Pipeline and Future Prospects - Analysts have expressed disappointment regarding Xencor's internal pipeline, indicating it has not produced sufficient valuation upside beyond its existing royalty base [2] - The company is expected to release early dose-escalation data for its lead oncology program, XmAb819, later this year, but these results are anticipated to be too preliminary to significantly impact the stock [2]

Summary of Zencore Conference Call Company Overview - **Company**: Zencore - **Event**: Cantor Global Healthcare Conference - **Date**: September 04, 2025 Key Points Current State and Strategy - Zencore is focused on developing drugs for severe diseases using its XmAb Protein Engineering Platform, targeting unmet needs in both oncology and autoimmune diseases [3][4] - The company is advancing into immunology indications, building on its core oncology expertise [2][3] Bispecific T Cell Engager Program - The XmAb819 bispecific T cell engager targets ENPP3, a protein expressed in renal cell carcinoma (RCC) and other solid tumors [6][10] - Initial data from the dose escalation phase is expected to be presented at the AACR NCI EORTC meeting in October 2025 [10][18] - The program aims to provide a differentiated treatment option in a complex therapeutic landscape for RCC, where existing therapies have limitations [13][14] Clinical Landscape for RCC - Current first-line treatments for advanced clear cell RCC include PD-1 inhibitors and VEGF TKIs, with a lack of effective options for patients who progress beyond second-line therapy [13][14] - Belzutafan, a recently approved therapy, has shown a 25% response rate in heavily pretreated patients, indicating a need for more effective treatments [15][16] TL1A Asset Development - Zencore is developing TL1A as a potential best-in-class molecule for inflammatory bowel disease (IBD) and other indications [22][23] - The company is initiating a Phase 2b study in ulcerative colitis, with plans to explore additional indications like Crohn's disease [24][28] - The TL1A program is positioned to capitalize on the limitations of existing therapies, aiming for improved efficacy and patient outcomes [27][28] Bispecific Antibody Approach - Zencore is exploring bispecific antibodies targeting TL1A and IL-23, with potential applications in IBD and other autoimmune diseases [29][30] - The bispecific approach is expected to offer a safer profile and improved dosing flexibility compared to existing therapies [29][34] Future Outlook - Zencore plans to continue leveraging its engineering tools to develop novel drug candidates while focusing on clinical data generation [51][52] - The company is optimistic about the potential of its current pipeline, particularly in the context of unmet medical needs in oncology and autoimmune diseases [18][52] Additional Insights - The company acknowledges the challenges in modeling drug exposure in the gut for IBD therapies, emphasizing the need for high drug exposure to achieve desired clinical outcomes [39][42] - Zencore is committed to exploring the therapeutic potential of B cell depletion in autoimmune diseases, drawing parallels with successful oncology therapies [45][48] Conclusion - Zencore is strategically positioned to advance its innovative therapies in oncology and immunology, with a strong focus on addressing unmet medical needs through its proprietary engineering platform and clinical development programs [51][52]

Financial Data and Key Metrics Changes - The company is at a clinical inflection point with a focus on oncology and autoimmune disease programs, indicating a strategic reset and a shift towards higher probability success programs [4][5] - The Phase 2b study for the monospecific TL1a program in ulcerative colitis has commenced, with expectations for significant data generation in the coming years [6][7] Business Line Data and Key Metrics Changes - The company has three therapeutic verticals: oncology, autoimmune diseases, and a focus on protein engineering to enhance drug modalities [6][7] - XmAb942, targeting TL1a, has shown a greater than seventy-one day half-life, allowing for a Q12 week dosing schedule, which is a significant improvement over first-generation drugs [12][18] Market Data and Key Metrics Changes - The company is targeting advanced clear cell renal cell carcinoma with XmAb819, which has a high unmet need for innovative treatments [36][40] - The competitive landscape includes other companies developing TL1a and IL-23 inhibitors, with the company aiming to differentiate its products through superior potency and dosing schedules [13][21] Company Strategy and Development Direction - The company aims to leverage its protein engineering platform to create differentiated therapies that maximize patient benefits and advance the standard of care [6][7] - A strategic reset in September 2024 has set the stage for clinical data generation and regulatory approvals, with a focus on bringing the story together for investors [46][47] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the clinical development pipeline and the potential for differentiated clinical profiles that could lead to successful commercialization [19][41] - The company is focused on efficient study designs to expedite the transition to pivotal studies and commercialization [19][33] Other Important Information - The company has initiated multiple clinical studies, including the bispecific TL1A and IL-23 program, with first-in-human studies expected in 2026 [22][24] - The company is also ramping up studies for plamotamab and XmAb657, with regulatory authorizations in progress [26][27] Q&A Session Summary Question: Can you discuss the rationale for targeting ENPP3 in CCRC patients? - The company chose ENPP3 based on internal data and third-party validation, allowing for a faster study design without preselecting patients [36][38] Question: What are the advantages of the bispecific design over combining an anti-TL1A with an IL-23? - The bispecific design allows for a synergistic effect between TL1A and IL-23, potentially leading to better clinical outcomes with a single drug delivery [21][22] Question: What is the expected timeline for initial data readout for plamotamab? - Initial data is expected towards the end of this year or early next year as the study ramps up [33] Question: How does the company plan to differentiate XmAb541 from other therapies? - The company aims to achieve a favorable safety profile and effective dosing regimen to differentiate XmAb541 from existing therapies targeting CLDN6 [44][45]

Company Performance - Xencor reported a quarterly loss of $0.41 per share, which is better than the Zacks Consensus Estimate of a loss of $0.78, and an improvement from a loss of $1.07 per share a year ago [1] - The quarterly report represents an earnings surprise of +47.44%, having surpassed consensus EPS estimates three times over the last four quarters [2] - The company posted revenues of $43.61 million for the quarter ended June 2025, exceeding the Zacks Consensus Estimate by 116.92%, compared to revenues of $16.96 million a year ago [3] Stock Performance - Xencor shares have declined approximately 65.4% since the beginning of the year, contrasting with the S&P 500's gain of 7.1% [4] - The current consensus EPS estimate for the upcoming quarter is -$0.77 on revenues of $20.95 million, and -$3.08 on revenues of $96.4 million for the current fiscal year [8] Industry Outlook - The Medical - Drugs industry, to which Xencor belongs, is currently ranked in the top 34% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [9] - Another company in the same industry, Plus Therapeutics, is expected to report a quarterly loss of $0.09 per share, reflecting a year-over-year change of +87.3%, with revenues projected at $1.7 million, up 32.8% from the previous year [10]

[Special Note Regarding Forward-Looking Statements](index=3&type=section&id=SPECIAL%20NOTE%20REGARDING%20FORWARD-LOOKING%20STATEMENTS) This section provides cautionary statements regarding future expectations and potential risks that may cause actual results to differ [Forward-Looking Statements Disclosure](index=3&type=section&id=Forward-Looking%20Statements%20Disclosure) Forward-looking statements in the 10-Q are subject to safe harbors; actual results may differ due to various factors - The report contains forward-looking statements, identifiable by specific terminology, which are subject to safe harbors under the Securities Act of 1933 and the Securities Exchange Act of 1934[8](index=8&type=chunk) - Actual results may differ materially from current expectations due to known and unknown risks, uncertainties, and other factors, including those described under Part II, 'Item 1A. Risk Factors'[9](index=9&type=chunk) - The company does not assume any obligation to update or revise these forward-looking statements, even if new information becomes available, except as required by law[9](index=9&type=chunk) [Key Factors Affecting Future Results](index=3&type=section&id=Key%20Factors%20Affecting%20Future%20Results) Key factors affecting future results include inflation, product development, clinical trials, regulatory approvals, IP, and financing - The effects of inflation on financial condition, results of operations, cash flows, and performance[10](index=10&type=chunk) - Ability to execute plans for research, development, and commercialization of product candidates[10](index=10&type=chunk) - Success of ongoing and planned clinical trials and timing/ability to obtain regulatory approvals[10](index=10&type=chunk) - Ability to identify additional products or product candidates with significant commercial potential[10](index=10&type=chunk) - Ability to receive research funding and achieve anticipated milestones under collaborations[10](index=10&type=chunk) - Partners' abilities to advance drug candidates into, and successfully complete, clinical trials[10](index=10&type=chunk) - Ability to attract collaborators with development, regulatory, and commercialization expertise[10](index=10&type=chunk) - Ability to protect intellectual property position[10](index=10&type=chunk) - Rate and degree of market acceptance and clinical utility of products[10](index=10&type=chunk) - Costs of compliance and failure to comply with new and existing governmental regulations[10](index=10&type=chunk) - Capabilities and strategy of suppliers and vendors, including key manufacturers of clinical drug supplies[10](index=10&type=chunk) - Significant competition in the industry[10](index=10&type=chunk) - Potential loss or retirement of key members of management[10](index=10&type=chunk) - Failure to successfully execute growth strategy, including delays in planned future growth[10](index=10&type=chunk) - Failure to maintain effective internal controls, which led to restatement of financial statements, and risk of additional material weaknesses[10](index=10&type=chunk) - Ability to accurately estimate expenses, future revenues, capital requirements, and needs for additional financing[10](index=10&type=chunk) [Part I. Financial Information](index=4&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) This section presents Xencor's unaudited consolidated financial statements, management's discussion, market risk, and internal controls [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) This section presents Xencor's unaudited consolidated financial statements and detailed notes on accounting policies and agreements [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) The balance sheet shows a decrease in total assets and stockholders' equity from December 2024 to June 2025 Consolidated Balance Sheet Highlights (in thousands) | Item | June 30, 2025 | December 31, 2024 | | :-------------------------------- | :------------ | :---------------- | | **Assets** | | | | Total current assets | $513,150 | $577,601 | | Total assets | $879,424 | $951,945 | | **Liabilities & Stockholders' Equity** | | | | Total current liabilities | $96,083 | $87,432 | | Total liabilities | $259,073 | $277,919 | | Total stockholders' equity attributable to Xencor, Inc. | $620,351 | $677,611 | | Total liabilities and stockholders' equity | $879,424 | $951,945 | - Total assets decreased from **$951,945 thousand** at December 31, 2024, to **$879,424 thousand** at June 30, 2025, primarily driven by a decrease in marketable debt and equity securities and accounts receivable[13](index=13&type=chunk) - Total stockholders' equity attributable to Xencor, Inc. decreased from **$677,611 thousand** to **$620,351 thousand** over the same period, largely due to accumulated deficit[13](index=13&type=chunk) [Consolidated Statements of Operations and Comprehensive Loss](index=5&type=section&id=Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Loss) Revenue increased significantly, leading to reduced operating and net losses for the three and six months ended June 30, 2025 Consolidated Statements of Operations and Comprehensive Loss Highlights (in thousands) | Item | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Revenue (Collaborations, milestones, and royalties) | $43,608 | $23,907 | $76,340 | $39,904 | | Total operating expenses | $76,780 | $79,277 | $152,695 | $149,937 | | Operating loss | $(33,172) | $(55,370) | $(76,355) | $(110,033) | | Total other income (expense) | $2,097 | $(13,412) | $(2,985) | $(32,865) | | Net loss attributable to Xencor, Inc. | $(30,825) | $(67,337) | $(79,243) | $(140,777) | | Net loss per share (basic and diluted) | $(0.41) | $(1.09) | $(1.07) | $(2.29) | - Revenue increased significantly for both the three-month period (**82.4%**) and six-month period (**91.3%**) ended June 30, 2025, compared to 2024, primarily due to higher collaboration, milestone, and royalty payments[16](index=16&type=chunk) - Operating loss decreased for both periods, indicating improved operational performance, with a **40.1%** reduction for the three months and a **30.6%** reduction for the six months[16](index=16&type=chunk) - Net loss attributable to Xencor, Inc. decreased by **54.2%** for the three months and **43.8%** for the six months ended June 30, 2025, compared to the prior year, driven by increased revenue and improved other income/expense[16](index=16&type=chunk) [Consolidated Statements of Stockholders' Equity](index=6&type=section&id=Consolidated%20Statements%20of%20Stockholders%20Equity) Total stockholders' equity decreased to **$620,351 thousand** by June 30, 2025, primarily due to net loss, partially offset by stock-based compensation - Total stockholders' equity decreased from **$674,026 thousand** at December 31, 2024, to **$620,351 thousand** at June 30, 2025, primarily due to net loss of **$79,243 thousand** for the six months ended June 30, 2025, partially offset by stock-based compensation and exercise of stock options[19](index=19&type=chunk) Changes in Stockholders' Equity (in thousands) - Six Months Ended June 30, 2025 | Item | Amount | | :------------------------------------ | :----- | | Balance at December 31, 2024 | $674,026 | | Stock-based compensation | $22,950 | | Exercise of stock options | $2,974 | | Issuance of common stock under ESPP | $662 | | Purchase of noncontrolling interest | $(1,725) | | Net unrealized gain on marketable debt securities | $921 | | Net loss | $(79,243) | | Balance at June 30, 2025 | $620,351 | [Consolidated Statements of Cash Flows](index=7&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash used in operating activities significantly decreased, leading to a net increase in cash for the six months ended June 30, 2025 Consolidated Statements of Cash Flows Highlights (in thousands) | Cash Flow Activity | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------ | :----------------------------- | :----------------------------- | | Net cash used in operating activities | $(52,589) | $(124,209) | | Net cash provided by investing activities | $54,144 | $98,334 | | Net cash provided by financing activities | $1,911 | $2,857 | | Net increase (decrease) in cash, cash equivalents, and restricted cash | $3,466 | $(23,018) | | Cash, cash equivalents, and restricted cash, end of period | $44,728 | $31,152 | - Net cash used in operating activities significantly decreased from **$(12