Xencor(US:XNCR)2024-05-09 20:02Clinical Development - The company is advancing a broad portfolio of clinical-stage XmAb® drug candidates, focusing on engineered antibody therapeutics for cancer and serious diseases [121]. - Five wholly-owned or co-development candidates are currently enrolling in Phase 1 or Phase 2 studies targeting various cancers and autoimmune diseases [124]. - Vudalimab, a bispecific antibody, is being evaluated in a Phase 2 study for metastatic castration-resistant prostate cancer (mCRPC) and has shown encouraging clinical activity [126]. - XmAb819, targeting ENPP3 and CD3, is in a Phase 1 study for advanced clear cell renal cell carcinoma (RCC) [128]. Financial Performance - Total revenues for the three months ended March 31, 2024, were $12.8 million, a decrease of $6.2 million (approximately 32.6%) compared to $19.0 million in the same period of 2023 [149]. - The company has not generated any revenues from its own product sales and continues to incur significant research and development expenses [146]. - The company earned $2.9 million in estimated non-cash royalties from MorphoSys for the three months ended March 31, 2024 [142]. - Net loss attributable to Xencor, Inc. for the three months ended March 31, 2024, was $68.0 million, an increase of $7.2 million (approximately 11.9%) compared to a net loss of $60.8 million in 2023 [149]. - Cash used in operating activities increased to $55.3 million for the three months ended March 31, 2024, compared to $30.6 million in 2023, reflecting a change of $24.6 million [158]. - Other expense, net for the three months ended March 31, 2024, was $10.8 million, primarily due to an impairment charge on equity investments [156]. - General and administrative expenses decreased by $0.4 million (approximately 2.8%) to $13.8 million for the three months ended March 31, 2024, compared to $14.2 million in 2023 [155]. Cash Position - As of March 31, 2024, the company had $646.7 million in cash, cash equivalents, restricted cash, and marketable debt securities, down from $697.4 million as of December 31, 2023 [162]. - The existing cash and marketable securities are expected to fund operating expenses into 2027, based on current operating plans [164]. Research and Development - Research and development expenses decreased by $8.7 million (approximately 13.2%) to $56.9 million for the three months ended March 31, 2024, down from $65.6 million in 2023 [154]. - The company expects to continue to increase operating expenses in connection with ongoing clinical and preclinical development of product candidates [163]. Partnerships and Intellectual Property - The company has a partnership with Genentech for efbalropendekin alfa, with potential milestone payments of up to $600 million and tiered royalties on approved sales [134]. - The company has over 1,500 issued and pending patents worldwide to protect its XmAb technology platform and drug candidates [145]. Regulatory Approvals - The FDA approved Monjuvi® (tafasitamab-cxix) under accelerated approval in July 2020 for the treatment of adult patients with relapsed or refractory diffuse large B-cell lymphoma [141]. Future Expectations - The company has not generated any revenue from product sales to date and does not expect to do so until regulatory approval is obtained [163].