Xencor(XNCR) - 2025 Q1 - Quarterly Results

First Quarter 2025 Financial Results and Business Update Xencor reported strong Q1 2025 financial results, advanced key programs, and provided positive financial guidance Key Highlights & Management Commentary Xencor reported positive XmAb942 Phase 1 results supporting 12-week dosing for Phase 2b, and announced a key executive transition - Interim Phase 1 results for XmAb942 (anti-TL1A) support a 12-week subcutaneous maintenance dosing regimen, a potential improvement over first-generation anti-TL1A antibodies[2][3] - A Phase 2b study of XmAb942 in ulcerative colitis, named XENITH-UC, is on track to be initiated in the second half of 2025[2][3] - Nancy Valente, M.D., Chief Development Officer, will retire from her role and transition to a senior advisor position in June 2025[2][3] - The company plans to advance an XmAb TL1A x IL23p19 bispecific antibody candidate into Phase 1 trials in 2026[3] Recent Program Updates Xencor provided program updates, including XmAb942's Phase 1 data supporting 12-week dosing and advancing a novel bispecific antibody - XmAb942 (Xtend™ TL1A): Interim Phase 1 results from a dose-escalation study in healthy volunteers showed the antibody was well tolerated and has an estimated human half-life of over 71 days[5] - The Phase 2b XENITH-UC study will be a randomized, double-blind, placebo-controlled trial in patients with moderate-to-severe ulcerative colitis[6] - XmAb TL1A x IL23p19: A bispecific antibody targeting two inflammatory pathways is in lead selection, with GMP production campaigns initiated. First-in-human studies are expected to begin in 2026[6] Recent Partnership Developments Xencor recognized $12.5 million from Incyte and $2.0 million from Vir Biotechnology in Q1 2025 from key partnership milestones - Incyte Corporation: Earned a $12.5 million regulatory milestone payment after the FDA accepted for review a supplemental BLA for tafasitamab in relapsed or refractory follicular lymphoma[11] - Vir Biotechnology, Inc.: Earned a $2.0 million development milestone payment following the initiation of a Phase 3 study of tobevibart (using XmAb Fc technologies) for chronic hepatitis delta[11] Additional Corporate Updates & Financial Guidance Xencor appointed a new board member and projected $535 million to $585 million cash by year-end 2025, funding operations into 2028 - In March, Todd Simpson, former CFO at Seagen, was appointed to Xencor's board of directors[8] - The company expects to end 2025 with cash, cash equivalents, and marketable debt securities between $535 million and $585 million[8] - The current cash position is anticipated to fund research and development programs and operations into 2028[8] Financial Results for the First Quarter Ended March 31, 2025 Xencor's Q1 2025 revenue more than doubled to $32.7 million, narrowing net loss to $48.4 million, and maintaining $693.5 million in cash First Quarter Financial Performance | Financial Metric | Q1 2025 ($M) | Q1 2024 ($M) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 32.7 | 16.0 | +104.4 | | R&D Expenses | 58.6 | 56.9 | +3.0 | | G&A Expenses | 17.3 | 13.8 | +25.4 | | Net Loss | (48.4) | (73.4) | +34.1 (Loss Reduced) | | Net Loss Per Share | (0.66) | (1.20) | +45.0 (Loss Reduced) | Selected Balance Sheet Data | Balance Sheet Item | March 31, 2025 ($M) | December 31, 2024 ($M) | | :--- | :--- | :--- | | Cash, cash equivalents and marketable debt securities | 693.5 | 706.7 | - The increase in R&D expenses was primarily due to increased spending on XmAb819 (ENPP3 x CD3), XmAb541 (CLDN6 x CD3), and XmAb657 (CD19 x CD3) programs[12] - The decrease in 'Other expense, net' to $5.1 million from $19.5 million in Q1 2024 was primarily due to lower asset impairment charges[13] Financial Statements The company's financial statements detail its balance sheet position and operational performance for the first quarter of 2025 Selected Consolidated Balance Sheet Data As of March 31, 2025, Xencor reported total assets of $904.7 million, liabilities of $264.8 million, and $693.5 million in cash and equivalents Selected Consolidated Balance Sheet Data (in thousands) | (in thousands) | March 31, 2025 (Unaudited, $ thousands) | December 31, 2024 ($ thousands) | | :--- | :--- | :--- | | Cash, cash equivalents and marketable debt securities | 693,511 | 706,679 | | Total assets | 904,689 | 951,945 | | Total liabilities | 264,815 | 277,919 | | Total stockholders' equity | 639,874 | 674,026 | Consolidated Statements of Operations and Comprehensive Loss For Q1 2025, Xencor reported $32.7 million revenue, $43.2 million operating loss, and $48.4 million net loss, or $(0.66) per share Consolidated Statements of Operations and Comprehensive Loss (in thousands, except per share data) | (in thousands, except per share data) | Three Months Ended March 31, 2025 ($ thousands) | Three Months Ended March 31, 2024 ($ thousands) | | :--- | :--- | :--- | | Revenue | 32,732 | 15,997 | | Total operating expenses | 75,915 | 70,660 | | Operating loss | (43,183) | (54,663) | | Net loss attributable to Xencor, Inc. | (48,418) | (73,440) | | Net loss per share (Basic and Diluted) | (0.66) | (1.20) | | Weighted-average shares outstanding | 73,667,179 | 61,212,324 |