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Classified in: Health, Science and technology, Business
Subjects: EARNINGS, Conference Call, Webcast

Xencor Reports First Quarter 2024 Financial Results


Xencor, Inc. (NASDAQ:XNCR), a clinical-stage biopharmaceutical company developing engineered antibodies for the treatment of cancer and other serious diseases, today reported financial results for the first quarter ended March 31, 2024 and provided a review of recent clinical and business highlights.

"We have focused our XmAb® clinical pipeline and discovery activities on bispecific CD3 and CD28 T cell engagers, which continue to show clinical validation for their potential in treating patients with serious diseases. Our key clinical-stage oncology programs in solid tumors include XmAb819 (ENPP3 x CD3) in clear cell renal cell carcinoma, XmAb808 (B7-H3 x CD28) in prostate cancer and other cancers, and XmAb541 (CLDN6 x CD3) in ovarian cancer and other cancers, which are all now advancing in Phase 1 clinical studies. We plan to select our next T cell engager IND candidate later this year," said Bassil Dahiyat, Ph.D., president and chief executive officer at Xencor. "Additionally, Xencor's best-in-class Xtendtm antibody half-life extension technology continues to support improved outcomes for patients, with Ultomiris® now approved in the U.S. for certain patients with NMOSD, and we are especially delighted by recently published results demonstrating an investigational antibody with Xtend was effective in preventing malaria."

Recent Clinical and Business Highlights

Financial Guidance: Based on current operating plans, Xencor expects to end 2024 with between $475 million and $525 million in cash, cash equivalents and marketable debt securities, and to have cash to fund research and development programs and operations into 2027.

Financial Results for the First Quarter Ended March 31, 2024

Cash, cash equivalents and marketable debt securities totaled $646.7 million as of March 31, 2024, compared to $697.4 million on December 31, 2023.

Revenues for the first quarter ended March 31, 2024 were $12.8 million, compared to $19.0 million for the same period in 2023. Total revenues earned in the first quarter of 2024 included non-cash royalty revenue from Xencor's Alexion and Morphosys/Incyte agreements, compared to milestone revenue earned from the J&J collaboration and royalties from the Alexion agreement in the first quarter of 2023.

Research and development expenses for the first quarter ended March 31, 2024 were $56.9 million, compared to $65.6 million for the same period in 2023. Decreased research and development spending for the first quarter of 2024 compared to 2023 reflects changes in spending across multiple clinical-stage programs and wind-down costs on terminated programs.

General and administrative expenses for the first quarter ended March 31, 2024 were $13.8 million and were in line with $14.2 million for the same period in 2023.

Other expense, net, for the first quarter ended March 31, 2024 was $10.8 million, compared to $0.02 million for the same period in 2023. Increased other expense for the first quarter of 2024 compared to 2023 reflects impairment charge on equity investments, partially offset by interest income earned on investments and unrealized gain on equity investments.

Non-cash, stock-based compensation expense for the first quarter ended March 31, 2024 was $11.4 million, compared to $12.6 million for the same period in 2023.

Net loss for the first quarter ended March 31, 2024 was $68.0 million, or $(1.11) on a fully diluted per share basis, compared to $60.8 million, or $(1.02) on a fully diluted per share basis, for the same period in 2023.

The total shares outstanding were 61,634,685 as of March 31, 2024, compared to 60,381,600 as of March 31, 2023.

Upcoming Investor Conferences

Company management will participate at multiple upcoming investor conferences:

Live webcasts of the presentations will be available under "Events & Presentations" in the Investors section of the Company's website located at www.xencor.com. Replays of the events will be available on the Xencor website for at least 30 days following the presentations.

About Xencor

Xencor is a clinical-stage biopharmaceutical company developing engineered antibodies for the treatment of patients with cancer and other serious diseases. More than 20 candidates engineered with Xencor's XmAb® technology are in clinical development, and three XmAb medicines are marketed by partners. Xencor's XmAb engineering technology enables small changes to a proteins structure that result in new mechanisms of therapeutic action. For more information, please visit www.xencor.com.

Forward-Looking Statements

Certain statements contained in this press release may constitute forward-looking statements within the meaning of applicable securities laws. Forward-looking statements include statements that are not purely statements of historical fact, and can generally be identified by the use of words such as "potential," "can," "will," "plan," "may," "could," "would," "expect," "anticipate," "seek," "look forward," "believe," "committed," "investigational," and similar terms, or by express or implied discussions relating to Xencor's business, including, but not limited to, statements regarding planned presentations of clinical data, planned clinical trials, projected financial resources, the quotations from Xencor's president and chief executive officer, and other statements that are not purely statements of historical fact. Such statements are made on the basis of the current beliefs, expectations, and assumptions of the management of Xencor and are subject to significant known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements and the timing of events to be materially different from those implied by such statements, and therefore these statements should not be read as guarantees of future performance or results. Such risks include, without limitation, the risks associated with the process of discovering, developing, manufacturing and commercializing drugs that are safe and effective for use as human therapeutics and other risks, including the ability of publicly disclosed preliminary clinical trial data to support continued clinical development and regulatory approval for specific treatments, in each case as described in Xencor's public securities filings. For a discussion of these and other factors, please refer to Xencor's annual report on Form 10-K for the year ended December 31, 2023 as well as Xencor's subsequent filings with the Securities and Exchange Commission. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. This caution is made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, as amended to date. All forward-looking statements are qualified in their entirety by this cautionary statement and Xencor undertakes no obligation to revise or update this press release to reflect events or circumstances after the date hereof, except as required by law.

Xencor, Inc.
Selected Consolidated Balance Sheet Data
(in thousands)
 

March 31,

 

December 31,

 

2024

 

 

 

2023

 

(Unaudited)
Cash, cash equivalents and marketable debt securities - current

$

491,401

$

551,515

Other current assets

 

70,851

 

 

71,645

 

Marketable debt securities - long term

 

155,342

 

 

145,892

 

Other long term assets

 

166,661

 

 

183,640

 

Total assets

$

884,255

 

$

952,692

 

 
Total current liabilities

 

79,402

 

 

84,709

 

Deferred income - long term

 

113,367

 

 

125,183

 

Other long term liabilities

 

79,299

 

 

73,667

 

Total liabilities

 

272,068

 

 

283,559

 

Total stockholders' equity

 

612,187

 

 

669,133

 

Total liabilities and stockholders' equity

$

884,255

 

$

952,692

 

Xencor, Inc.
Consolidated Statements of Loss and Comprehensive Loss
(in thousands, except share and per share data)
 

Three months Ended March 31,

 

2024

 

 

 

2023

 

(Unaudited)
Revenue

$

12,805

 

$

18,962

 

 
Operating expenses
Research and development

 

56,873

 

 

65,552

 

General and administrative

 

13,787

 

 

14,154

 

Total operating expenses

 

70,660

 

 

79,706

 

Loss from operations

 

(57,855

)

 

(60,744

)

 
Other income (expense), net

 

(10,854

)

 

(19

)

Loss before income tax

 

(68,709

)

 

(60,763

)

 
Income tax expense

 

?

 

 

?

 

Net loss

 

(68,709

)

 

(60,763

)

 
Net loss attributable to non-controlling interest

 

(676

)

 

?

 

Net loss attributable to Xencor, Inc.

 

(68,033

)

 

(60,763

)

 
Other comprehensive income (loss):
Net unrealized gain (loss) on marketable debt securities available-for-sale

 

(1,445

)

 

3,327

 

Comprehensive loss attributable to Xencor, Inc.

$

(69,478

)

$

(57,436

)

 
Net loss per common share attributable to Xencor, Inc.:
Basic and Diluted

$

(1.11

)

$

(1.02

)

Weighted average common shares used to compute net loss per share attributable to Xencor, Inc.
Basic and Diluted

 

61,212,324

 

 

59,771,674

 

 


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