Xencor(US:XNCR)2022-08-03 20:54Revenue and Financial Performance - In the first half of 2022, the company recorded royalty revenues of $70.3 million in Q1 and $22.1 million in Q2 from sales of sotrovimab, with expectations of declining royalties in subsequent quarters [128]. - The company received approximately $30.0 million in revenue from partnerships and collaborations during the quarter ended June 30, 2022 [129]. - Total revenues for the three months ended June 30, 2022, were $30.2 million, a decrease of $37.2 million compared to $67.4 million in the same period in 2021 [169]. - Royalty revenue increased by $22.7 million to $30.0 million for the three months ended June 30, 2022, compared to $7.3 million in the same period in 2021 [169]. - Total revenues for the six months ended June 30, 2022, were $115.7 million, an increase of 14.3% compared to $101.4 million in the same period of 2021 [178]. - Royalty revenue for the six months ended June 30, 2022, was $108.7 million, a significant increase of 94.7% from $14.0 million in the same period of 2021 [178]. - Net income (loss) for the six months ended June 30, 2022, was a loss of $10.4 million, a decrease of 60.2% compared to a net income of $49.8 million in the same period of 2021 [178]. - Other income (expense), net for the six months ended June 30, 2022, was ($8.9) million, a decrease of $65.3 million compared to $56.4 million in the same period of 2021 [184]. Research and Development - The company initiated a Phase 1 study of XmAb808, its first tumor-selective CD28 bispecific candidate, and plans to present initial data from the vudalimab Phase 2 study in the second half of 2022 [132][134]. - The company is currently enrolling patients in multiple clinical trials for six wholly owned or co-development candidates targeting various cancers and autoimmune diseases [133]. - The company plans to present data from expansion cohorts of plamotamab in the second half of 2022, with ongoing studies in collaboration with Janssen and MorphoSys AG [140][139]. - The company has decided to discontinue further internal development of tidutamab and XmAb841 due to lack of competitive clinical profiles [145]. - The company is advancing its XmAb 2+1 bispecific antibody format, which may preferentially kill tumor cells with high target expression, in multiple clinical-stage programs [149]. - The company plans to initiate a Phase 1 study for XmAb808 in the second half of 2022 after submitting an IND application in Q2 2022 [150]. - The company plans to submit an IND application for XmAb662, a reduced-potency IL12-Fc cytokine, and initiate a Phase 1 study in patients with advanced solid tumors in 2023 [153]. - The company has licensed its Xtend Fc technology to multiple partners for investigational antibodies targeting SARS-CoV-2, eligible for royalties on net sales [129]. - The company has over 1,300 issued and pending patents worldwide to protect its XmAb technology platform and drug candidates [166]. Expenses and Financial Position - Research and development expenses decreased by $2.4 million to $47.1 million for the three months ended June 30, 2022, compared to $49.5 million in the same period in 2021 [175]. - General and administrative expenses increased by $2.2 million to $11.1 million for the three months ended June 30, 2022, compared to $8.9 million in the same period in 2021 [176]. - Research and development expenses increased by $3.9 million to $94.8 million for the six months ended June 30, 2022, primarily due to increased spending on new development programs [182]. - General and administrative expenses rose by $5.3 million to $22.4 million for the six months ended June 30, 2022, mainly due to increased staffing and lease expenses [183]. - The company had an accumulated deficit of $293.5 million as of June 30, 2022, primarily due to expenses related to product candidate development and research activities [168]. - Cash provided by operating activities for the six months ended June 30, 2022, was $50.1 million, compared to cash used of $39.6 million in the same period of 2021, reflecting an increase of $89.7 million [186]. - As of June 30, 2022, the company had $679.7 million in cash, cash equivalents, receivables, and marketable debt securities, up from $664.1 million as of December 31, 2021 [190]. - The company expects that existing cash and potential milestone payments will fund operating expenses through the end of 2025, although this is subject to uncertainties [192]. Product Development and Regulatory Approval - 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 [156]. - The company recognized a $5.0 million milestone from Astellas for a development milestone for the six months ended June 30, 2022 [161]. - The company has not generated revenue from product sales to date and does not expect to do so until regulatory approval is obtained for its internal product development candidates [191].