Core Viewpoint - Xilio Therapeutics, Inc. has announced a pre-funded warrant offering to raise approximately $40 million to support the development of its immuno-oncology therapies and for general corporate purposes [1][2]. Group 1: Offering Details - The offering consists of 74,780,300 pre-funded warrants priced at $0.5349 each, with an exercise price of $0.0001 per share [1]. - The pre-funded warrants are immediately exercisable and will remain valid until fully exercised [1]. - The offering is expected to close on or about February 13, 2026, pending customary closing conditions [1]. Group 2: Financial Aspects - Gross proceeds from the offering are anticipated to be around $40 million before deducting underwriting discounts and commissions [2]. - The proceeds will be utilized to advance product candidates and for working capital and other corporate needs [2]. Group 3: Investor Participation - The financing was led by Coastlands Capital, with participation from Gilead Sciences, Inc., OrbiMed, Perceptive Advisors, and other institutional investors [3]. - Leerink Partners is serving as the sole bookrunner for the offering [3]. Group 4: Company Overview - Xilio Therapeutics is focused on developing masked immuno-oncology therapies aimed at improving cancer treatment outcomes while minimizing systemic side effects [6]. - The company employs proprietary masking technology to create novel I-O molecules that target anti-tumor activity within the tumor microenvironment [6].

Core Insights - Xilio Therapeutics, Inc. has successfully raised $35.8 million through Series B warrant exercises, extending its cash runway into the second quarter of 2027 [1][4][8] - The company achieved a development milestone for its masked antibody-based program under the collaboration with AbbVie and nominated a development candidate for its masked T cell engager program targeting CLDN18.2 [1][6] - Sara Bonstein has been appointed as the chair of the board of directors, succeeding Paul Clancy [1][6][3] Financial Updates - As of December 31, 2025, Xilio reported cash and cash equivalents of $137.5 million, which includes the recent $35.8 million raised [7][8] - The funds are expected to support the company's operating expenses and capital expenditures through the second quarter of 2027 [8] Corporate Developments - The appointment of Sara Bonstein as chair of the board is seen as a strategic move, given her extensive experience in finance and biotechnology [6][3] - The company has made significant progress in demonstrating the validation of its masking technology through partnerships with Gilead and AbbVie [3][6] Anticipated Milestones - Xilio plans to submit an investigational new drug (IND) application for XTX501 in mid-2026 and report initial Phase 1 data in the second half of 2027 [12] - The company aims to advance at least two masked T cell engager programs into IND-enabling studies and submit IND applications for those programs in 2027 [12]