Xencor(XNCR) - 2025 Q2 - Quarterly Results

Executive Summary & Business Highlights CEO Statement & Strategic Focus Xencor is actively executing clinical studies for four wholly-owned XmAb® drug candidates across oncology and autoimmune diseases, with key programs progressing through dose-escalation and new Phase 2b studies initiated - Focus on execution of clinical studies for four wholly-owned XmAb® drug candidates in cancer and advanced autoimmune-driven diseases[2] - Oncology programs XmAb819 (ccRCC) and XmAb541 (CLDN6 solid tumors) are progressing through dose-escalation studies[2] - Initiated Phase 2b XENITH-UC study for XmAb942 (TL1A for IBD) and received regulatory authorization for plamotamab (CD20 B-cell depleting TCE) in rheumatoid arthritis[2] Clinical Program Updates Oncology Programs Xencor's oncology pipeline includes two T-cell engager bispecific antibodies, XmAb819 for clear cell renal cell carcinoma and XmAb541 for CLDN6-expressing solid tumors, both advancing through Phase 1 dose-escalation studies - XmAb819 (ENPP3 x CD3) is a first-in-class, tumor-targeted T-cell engager for advanced clear cell renal cell carcinoma (ccRCC). Initial dose-escalation data is planned for presentation in Q4 2025[3] - XmAb541 (CLDN6 x CD3) is a first-in-class, tumor-targeted T-cell engager for advanced solid tumors expressing CLDN6, with a Phase 1 dose-escalation study ongoing and target dose level characterization anticipated in 2025[3] Autoimmune & Inflammatory Disease Programs In autoimmune and inflammatory diseases, Xencor is advancing plamotamab for rheumatoid arthritis and XmAb942 for inflammatory bowel disease, with new study initiations and promising half-life data for XmAb942 - Plamotamab (CD20 x CD3), a B-cell depleting bispecific T-cell engager, received regulatory authorization in June 2025 to proceed with a Phase 1b/2a proof-of-concept study for rheumatoid arthritis[7] - XmAb942 (Xtend™ anti-TL1A), an extended half-life antibody for inflammatory bowel disease, showed a greater than 71-day half-life in Phase 1, supporting every 12-week dosing. The global Phase 2b XENITH-UC Study for ulcerative colitis was recently initiated[7] - A proof-of-concept study for XmAb657 (CD19 B-cell depleting TCE) for autoimmune disease is on track to start later in the year[2] Partnership & Corporate Developments Recent Partnership Developments Xencor received a $25 million regulatory milestone payment from Incyte following FDA approval of Monjuvi for relapsed or refractory follicular lymphoma, in addition to non-cash royalty revenue - Incyte announced FDA approval of Monjuvi for relapsed or refractory follicular lymphoma in June 2025[5] Milestone Payment (Q2 2025) | Item | Amount ($) | | :--- | :--- | | Regulatory Milestone Payment from Incyte | $25 million | - Xencor also earned non-cash royalty revenue from sales of Monjuvi®/Minjuvi® for Q2 2025[5] Additional Corporate Updates Xencor appointed Dr. Raymond Deshaies to its board of directors, bringing extensive biotechnology and drug development experience. The company also provided financial guidance, projecting sufficient cash to fund operations into 2028 - Raymond Deshaies, Ph.D., a pioneering biochemist and cell biologist with over 25 years of experience, was appointed to Xencor's board of directors in July[6] Financial Guidance (End of 2025) | Metric | Projected Amount ($ Millions) | | :--- | :--- | | Cash, cash equivalents and marketable debt securities | $555 million - $585 million | - Xencor expects to have cash to fund research and development programs and operations into 2028[6] Financial Results for the Second Quarter Ended June 30, 2025 Key Financial Highlights (Q2 2025) Xencor reported a significant increase in revenue for Q2 2025, primarily driven by milestone payments, while managing R&D expenses and reducing G&A costs. The net loss decreased substantially compared to the prior year, partly due to unrealized gains from marketable equity securities Cash, Cash Equivalents and Marketable Debt Securities | Date | Amount ($ Millions) | | :--- | :--- | | June 30, 2025 | $663.8 | | December 31, 2024 | $706.7 | Revenue (Three Months Ended June 30) | Year | Amount ($ Millions) | | :--- | :--- | | 2025 | $43.6 | | 2024 | $23.9 | | Change (YoY) | +82.4% | Key Financials (Three Months Ended June 30) | Metric | Q2 2025 ($ Millions) | Q2 2024 ($ Millions) | Change (YoY) | | :--- | :--- | :--- | :--- | | Research and development expenses | $61.7 | $61.5 | +0.3% | | General and administrative expenses | $15.1 | $17.7 | -14.7% | | Other income (expense), net | $2.1 | $(13.4) | N/A (gain vs. loss) | | Net loss attributable to Xencor, Inc. | $(30.8) | $(67.3) | -54.2% | | Net loss per share (diluted) | $(0.41) | $(1.09) | -62.4% | Consolidated Financial Statements Selected Consolidated Balance Sheet Data The selected consolidated balance sheet data shows a decrease in total assets and stockholders' equity from December 31, 2024, to June 30, 2025, while total liabilities also decreased Selected Consolidated Balance Sheet Data (in thousands) | | June 30, 2025 (unaudited) ($ Thousands) | December 31, 2024 ($ Thousands) | | :--- | :--- | :--- | | Cash, cash equivalents and marketable debt securities - current | $403,426 | $449,846 | | Other current assets | 109,724 | 127,755 | | Marketable debt securities - long term | 260,399 | 256,833 | | Other long-term assets | 105,875 | 117,511 | | Total assets | $879,424 | $951,945 | | Total current liabilities | $96,083 | $87,432 | | Liabilities related to the sales of future royalties - long term | 94,736 | 115,159 | | Other long term liabilities | 68,254 | 75,328 | | Total liabilities | 259,073 | 277,919 | | Total stockholders' equity | 620,351 | 674,026 | | Total liabilities and stockholders' equity | $879,424 | $951,945 | Consolidated Statements of Operations and Comprehensive Loss The consolidated statements of operations show a significant reduction in net loss for both the three and six months ended June 30, 2025, compared to the prior year, driven by increased revenue and improved other income (expense) Consolidated Statements of Operations and Comprehensive Loss (in thousands, except share and per share data) | | Three Months Ended June 30, | | Six Months Ended June 30, | | :--- | :--- | :--- | :--- | | | 2025 (Unaudited) ($ Thousands) | 2024 ($ Thousands) | 2025 (Unaudited) ($ Thousands) | 2024 ($ Thousands) | | Revenue: Collaborations, milestones, and royalties | $43,608 | $23,907 | $76,340 | $39,904 | | Operating expenses: | | | | | | Research and development | 61,665 | 61,531 | 120,243 | 118,404 | | General and administrative | 15,115 | 17,746 | 32,452 | 31,533 | | 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) | | Loss before income tax (benefit) expense and noncontrolling interest | (31,075) | (68,782) | (79,340) | (142,898) | | Income tax (benefit) expense | (250) | — | 117 | — | | Net loss including noncontrolling interest | (30,825) | (68,782) | (79,457) | (142,898) | | Net loss attributable to noncontrolling interest | — | (1,445) | (214) | (2,121) | | Net loss attributable to Xencor, Inc. | $(30,825) | $(67,337) | $(79,243) | $(140,777) | | Net loss per share attributable to Xencor, Inc. (basic and diluted) | $(0.41) | $(1.09) | $(1.07) | $(2.29) | | Weighted-average shares used in calculating (basic and diluted) | 74,278,872 | 61,676,444 | 73,974,715 | 61,444,384 | | Other comprehensive income (loss): | | | | | | Net unrealized (loss) gain on marketable debt securities | (97) | (498) | 921 | (1,942) | | Comprehensive loss | (30,922) | (69,280) | (78,536) | (144,840) | | Less: comprehensive loss attributable to the noncontrolling interest | — | (1,445) | (214) | (2,121) | | Comprehensive loss attributable to Xencor, Inc. | $(30,922) | $(67,835) | $(78,322) | $(142,719) | Company Overview & Legal Disclosures About Xencor Xencor is a clinical-stage biopharmaceutical company focused on developing engineered antibodies for cancer and autoimmune diseases, utilizing its proprietary XmAb® technology, with over 20 candidates in clinical development - Xencor is a clinical-stage biopharmaceutical company developing engineered antibodies for cancer and autoimmune diseases[13] - More than 20 candidates engineered with Xencor's XmAb® technology are in clinical development, and multiple XmAb medicines are marketed by partners[13] - XmAb engineering technology enables small changes to a protein's structure, resulting in new mechanisms of therapeutic action[13] Forward-Looking Statements This section serves as a cautionary statement, highlighting that certain statements in the press release are forward-looking and subject to significant risks and uncertainties inherent in drug discovery, development, manufacturing, and commercialization, and should not be considered guarantees of future performance - Statements regarding clinical progress, data presentations, new candidates, clinical trials, and financial guidance are forward-looking[14] - Such statements are subject to significant known and unknown risks, uncertainties, and other factors that may cause actual results to differ materially[14] - Risks include those associated with drug development, regulatory approval, loss of key management, and factors described in SEC filings. Xencor undertakes no obligation to revise or update these statements[15] Contact Information Investor and Media Contacts Contact information is provided for investor relations and media inquiries - Investor Contact: Charles Liles, cliles@xencor.com, (626) 737-8118[20] - Media Contact: Cassidy McClain, Inizio Evoke, cassidy.mcclain@inizioevoke.com, (619) 694-6291[20]