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Xencor(XNCR) - 2020 Q3 - Earnings Call Transcript

Financial Data and Key Metrics Changes - As of September 30, 2020, cash, cash equivalents, and marketable securities totaled $582.9 million, down from $601.3 million at December 31, 2019, reflecting cash used for operating activities [31] - Total revenue for Q3 2020 was $35.4 million, compared to $21.8 million for the same period in 2019, driven by milestone revenue from MorphoSys and licensing revenue from Omeros [32] - Total revenue for the nine months ended September 30, 2020, was $80.8 million, down from $153.2 million for the same period in 2019, primarily due to higher collaboration licensing revenue in 2019 [33] - Research and development expenditures for Q3 2020 were $44.5 million, up from $29.8 million in Q3 2019, reflecting increased spending on clinical programs [34] - Net loss for Q3 2020 was $12.6 million, or $0.22 per share, compared to a net loss of $10.2 million, or $0.18 per share, for the same period in 2019 [37] - For the nine months ended September 30, 2020, net loss was $55.6 million, or $0.97 per share, compared to net income of $53.8 million, or $0.92 per share, for the same period in 2019 [38] Business Line Data and Key Metrics Changes - The company is currently running six Phase I clinical studies evaluating XmAb bispecific antibodies, with a focus on oncology treatments [9] - The autoimmune IL-2 Fc program, XmAb27564, is on track for a Phase I study initiation in early 2021 [12][23] - The company has 12 ongoing partnerships for XmAb technology, resulting in two marketed products: Alexion's ULTOMIRIS and MorphoSys' Monjuvi [26] Market Data and Key Metrics Changes - The COVID-19 pandemic did not significantly disrupt patient enrollment in ongoing clinical studies, although there were critical shortages of materials affecting manufacturing processes [11] - Partnerships with companies like Genentech and Omeros continue to generate revenue without significant COVID-19 impacts [24] Company Strategy and Development Direction - The company is focusing on expanding its XmAb bispecific platform to create antibodies that bind multiple targets and engineer cytokines optimized for therapeutic use [9] - Partnerships are a core part of the business model, generating payments from licensing XmAb technologies and royalties from approved products [24] - The company is exploring opportunities to develop vibecotamab in patients with lower baseline leukemic disease burden [14] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the ongoing clinical programs and the potential for advancing multiple assets based on emerging proof-of-concept data [89] - The company expects to have sufficient cash to fund R&D programs and operations into 2024, projecting to end 2020 with between $525 million and $575 million in cash [39] Other Important Information - The company is maintaining remote work requirements for non-laboratory employees while ensuring on-site safety measures for those working in labs [12] - The company is developing a suite of cytokines engineered with XmAb bispecific Fc domains to improve their properties and drug-like characteristics [21] Q&A Session Summary Question: Next steps for CD123 for AML - Management indicated that they have restrictions due to the partnership with Novartis but noted that they observed more activity in patients with lower disease burdens [41][44] Question: Bar for AML in this population - Management stated that the populations possible with the agent vary, and they have good ideas about the bar without disclosing specifics [46] Question: Confidence in tolerability of 20717 - Management discussed the design of the molecule, which requires cooperative binding for strong binding, and noted that the tolerability profile is encouraging [50][54] Question: Planned studies for plamotamab - Management confirmed that Phase II studies are planned for relapsed refractory DLBCL, with more details to come [58] Question: Differences in patient characteristics for vibecotamab - Management indicated that there have not been significant changes to inclusion/exclusion criteria, so no major shifts in demographics are expected [72]