\nXencor, Inc. (NASDAQ:XNCR), a clinical-stage biopharmaceutical company developing engineered antibodies and cytokines for the treatment of patients with cancer and autoimmune diseases, today reported financial results for the first quarter ended March 31, 2023 and provided a review of recent business and clinical highlights.<\/p>\n
\n\u201cIn the first quarter, we and our partners continued to enroll patients across multiple Phase 1 and Phase 2 clinical studies of XmAb drug candidates in oncology and autoimmune diseases. Two new programs are planned to advance into clinical development this year, XmAb662, our engineered IL12-Fc cytokine, on track to start a Phase 1 study mid-year, and XmAb541, our CLDN6 x CD3 bispecific antibody for ovarian cancer, for which we anticipate submitting the IND by year end,\u201d said Bassil Dahiyat, Ph.D., president and chief executive officer at Xencor. \u201cAnd recently, we added to our team the expertise and talents of Nancy Valente, M.D., who will lead our clinical programs as our new executive vice president and chief development officer.\u201d<\/p>\n
Program and Corporate Updates<\/b><\/p>\n Progress Across Partnered Programs<\/b><\/p>\n \nUltomiris is a registered trademark of Alexion Pharmaceuticals, Inc.<\/p>\n Financial Results for the First Quarter Ended March 31, 2023<\/b><\/p>\n \nCash, cash equivalents, receivables and marketable debt securities totaled $568.2 million as of March 31, 2023, compared to $613.5 million on December 31, 2022.<\/p>\n \nRevenues for the first quarter ended March 31, 2023 were $19.0 million, compared to $85.5 million for the same period in 2022. Total revenues earned in the first quarter of 2023 included milestone revenue earned from Xencor\u2019s Janssen collaboration and royalties from the Alexion agreement, compared to revenue earned from the Janssen collaboration, milestone revenue from Astellas, and royalties from the Alexion, MorphoSys and Vir agreements in the first quarter of 2022.<\/p>\n \nResearch and development expenses for the first quarter ended March 31, 2023 were $64.4 million, compared to $47.8 million for the same period in 2022. Increased research and development spending for first quarter of 2023 compared to 2022 reflects increased spending on the Company\u2019s development programs including XmAb541 and XmAb564 and other research and early-stage programs.<\/p>\n \nGeneral and administrative expenses for the first quarter ended March 31, 2023 were $14.0 million, compared to $11.3 million in the same period in 2022. Increased general and administrative spending for the first quarter of 2023 compared to 2022 reflects increased facility expenses and additional spending on professional fees.<\/p>\n \nNon-cash, stock-based compensation expense for the first quarter ended March 31, 2023 was $12.6 million, compared to $10.8 million for the same period in 2022.<\/p>\n \nNet loss for the first quarter ended March 31, 2023 was $60.8 million, or $(1.02) on a fully diluted per share basis, compared to a net income of $23.6 million, or $0.39 on a fully diluted per share basis, for the same period in 2022. Net loss reported for the first quarter of 2023 compared to net income for the same period in 2022 is primarily due to decreased royalties from the Vir agreement.<\/p>\n \nThe total shares outstanding were 60,381,600 as of March 31, 2023, compared to 59,529,192 as of March 31, 2022.<\/p>\n Financial Guidance<\/b><\/p>\n \nBased on current operating plans, Xencor expects to have cash to fund research and development programs and operations through the end of 2025. The Company expects to end 2023 with between $425 million and $475 million in cash, cash equivalents, receivables and marketable debt securities.<\/p>\n Conference Call and Webcast<\/b><\/p>\n \nXencor will host a conference call today at 4:30 p.m. ET (1:30 p.m. PT) to discuss the first quarter 2023 financial results and provide a corporate update.<\/p>\n \nThe live webcast will be available under \u201cEvents & Presentations\u201d in the Investors section of the Company\u2019s website located at investors.xencor.com<\/a> and will be archived for at least 30 days. Active participants in the conference call may receive credentials for telephone access by registering at the following link: https:\/\/register.vevent.com\/register\/BI0da076297f5f4f3b920845d8b0e7f2d3<\/a>.<\/p>\n About Xencor, Inc.<\/b><\/p>\n \nXencor is a clinical-stage biopharmaceutical company developing engineered antibodies and cytokines for the treatment of patients with cancer and autoimmune diseases. More than 20 candidates engineered with Xencor’s XmAb\u00ae<\/sup> technology are in clinical development, and three XmAb medicines are marketed by partners. Xencor’s XmAb engineering technology enables small changes to a protein’s structure that result in new mechanisms of therapeutic action. For more information, please visit www.xencor.com<\/a>.<\/p>\n Forward-Looking Statements<\/b><\/p>\n \nCertain 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 \u201cpotential,\u201d \u201ccan,\u201d \u201cwill,\u201d \u201cplan,\u201d \u201cmay,\u201d \u201ccould,\u201d \u201cwould,\u201d \u201cexpect,\u201d \u201canticipate,\u201d \u201cseek,\u201d \u201clook forward,\u201d \u201cbelieve,\u201d \u201ccommitted,\u201d \u201cinvestigational,\u201d and similar terms, or by express or implied discussions relating to Xencor\u2019s business, including, but not limited to, statements regarding planned additional clinical trials, the quotations from Xencor’s president and chief executive officer, our projected financial resources 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, 2022 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.<\/p>\n 2023<\/b><\/p>\n<\/td>\n 2022<\/b><\/p>\n<\/td>\n<\/tr>\n \n$<\/p>\n<\/td>\n \n72,394<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n53,942<\/p>\n<\/td>\n<\/tr>\n \n\u00a0<\/p>\n<\/td>\n \n475,922<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n526,689<\/p>\n<\/td>\n<\/tr>\n \n\u00a0<\/p>\n<\/td>\n \n39,706<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n42,431<\/p>\n<\/td>\n<\/tr>\n \n\u00a0<\/p>\n<\/td>\n \n19,861<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n28,997<\/p>\n<\/td>\n<\/tr>\n \n\u00a0<\/p>\n<\/td>\n \n22,093<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n23,283<\/p>\n<\/td>\n<\/tr>\n \n\u00a0<\/p>\n<\/td>\n 629,976<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n 675,342<\/b><\/p>\n<\/td>\n<\/tr>\n \n\u00a0<\/p>\n<\/td>\n \n66,685<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n59,183<\/p>\n<\/td>\n<\/tr>\n \n\u00a0<\/p>\n<\/td>\n \n18,244<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n18,500<\/p>\n<\/td>\n<\/tr>\n \n\u00a0<\/p>\n<\/td>\n \n\u2014<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n3,826<\/p>\n<\/td>\n<\/tr>\n \n\u00a0<\/p>\n<\/td>\n \n54,210<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n54,383<\/p>\n<\/td>\n<\/tr>\n \n\u00a0<\/p>\n<\/td>\n \n33,697<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n34,419<\/p>\n<\/td>\n<\/tr>\n \n\u00a0<\/p>\n<\/td>\n \n599<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n613<\/p>\n<\/td>\n<\/tr>\n $<\/b><\/p>\n<\/td>\n 803,411<\/b><\/p>\n<\/td>\n $<\/b><\/p>\n<\/td>\n 846,266<\/b><\/p>\n<\/td>\n<\/tr>\n \n$<\/p>\n<\/td>\n \n30,481<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n28,816<\/p>\n<\/td>\n<\/tr>\n \n\u00a0<\/p>\n<\/td>\n \n30,104<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n30,320<\/p>\n<\/td>\n<\/tr>\n \n\u00a0<\/p>\n<\/td>\n \n4,471<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n4,708<\/p>\n<\/td>\n<\/tr>\n \n\u00a0<\/p>\n<\/td>\n 65,056<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n 63,844<\/b><\/p>\n<\/td>\n<\/tr>\n \n\u00a0<\/p>\n<\/td>\n \n54,772<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n54,926<\/p>\n<\/td>\n<\/tr>\n \n\u00a0<\/p>\n<\/td>\n 119,828<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n 118,770<\/b><\/p>\n<\/td>\n<\/tr>\n \n\u00a0<\/p>\n<\/td>\n 683,583<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n 727,496<\/b><\/p>\n<\/td>\n<\/tr>\n $<\/b><\/p>\n<\/td>\n 803,411<\/b><\/p>\n<\/td>\n $<\/b><\/p>\n<\/td>\n 846,266<\/b><\/p>\n<\/td>\n<\/tr>\n 2023<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n 2022<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \n18,962<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n85,495<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \n64,379<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n47,756<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \n13,948<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n11,273<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \n78,327<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n59,029<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \n(59,365<\/p>\n<\/td>\n \n)<\/p>\n<\/td>\n \n26,466<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \n(1,398<\/p>\n<\/td>\n \n)<\/p>\n<\/td>\n \n(2,872<\/p>\n<\/td>\n \n)<\/p>\n<\/td>\n<\/tr>\n \n(60,763<\/p>\n<\/td>\n \n)<\/p>\n<\/td>\n \n23,594<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \n3,327<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(5,611<\/p>\n<\/td>\n \n)<\/p>\n<\/td>\n<\/tr>\n \n(57,436<\/p>\n<\/td>\n \n)<\/p>\n<\/td>\n \n17,983<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \n(1.02<\/p>\n<\/td>\n \n)<\/p>\n<\/td>\n \n0.40<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \n(1.02<\/p>\n<\/td>\n \n)<\/p>\n<\/td>\n \n0.39<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \n59,771,674<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n59,407,829<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \n59,771,674<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n61,078,494<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \n\u00a0<\/p>\n View source version on businesswire.com: <\/span>https:\/\/www.businesswire.com\/news\/home\/20230508005616\/en\/<\/a><\/span><\/p>\n \nFor Investors: \nFor Media: KEYWORDS:<\/b> California United States North America<\/p>\n INDUSTRY KEYWORDS:<\/b> Biotechnology Health Pharmaceutical Clinical Trials Oncology<\/p>\n\n
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\n Xencor, Inc.<\/b><\/td>\n<\/tr>\n \n Condensed Balance Sheets<\/b><\/td>\n<\/tr>\n \n (in thousands)<\/b><\/td>\n<\/tr>\n \n \n \n \n \n \n \n \u00a0<\/td>\n<\/tr>\n \n \n \n \n \n March 31,<\/b><\/td>\n \n December 31,<\/b><\/td>\n<\/tr>\n \n \n \n \n \n \n \n \n \n \n \n \n \n (unaudited)<\/b><\/td>\n \n <\/tr>\n \n Assets<\/b><\/td>\n \n \n \n \n <\/tr>\n \n \n Current assets<\/b><\/td>\n \n \n \n <\/tr>\n \n \n \n Cash and cash equivalents<\/td>\n \n \n \n \n \n \n \n \n \n Marketable debt securities<\/td>\n \n \n \n \n \n \n \n \n \n Marketable equity securities<\/td>\n \n \n \n \n \n \n \n \n \n Accounts receivable<\/td>\n \n \n \n \n \n \n \n \n \n Prepaid expenses<\/td>\n \n \n \n \n \n \n \n Total current assets<\/b><\/td>\n \n \n \n \n \n \n \n \n \n \n \n \n \n \u00a0<\/td>\n<\/tr>\n \n \n \n Property and equipment, net<\/td>\n \n \n \n \n \n \n \n \n \n Intangible assets, net<\/td>\n \n \n \n \n \n \n \n \n \n Marketable debt securities – long term<\/td>\n \n \n \n \n \n \n \n \n \n Marketable equity securities – long term<\/td>\n \n \n \n \n \n \n \n \n \n Right of use asset<\/td>\n \n \n \n \n \n \n \n \n \n Other assets<\/td>\n \n \n \n \n \n \n \n Total assets<\/b><\/td>\n \n \n \n \n \n \n \n \n \n \n \n \n \n \u00a0<\/td>\n<\/tr>\n \n Liabilities and stockholders\u2019 equity<\/b><\/td>\n \n \n \n <\/tr>\n \n \n Current liabilities<\/b><\/td>\n \n \n \n <\/tr>\n \n \n \n Accounts payable and accrued liabilities<\/td>\n \n \n \n \n \n \n \n \n \n Deferred revenue<\/td>\n \n \n \n \n \n \n \n \n \n Lease liabilities<\/td>\n \n \n \n \n \n \n \n Total current liabilities<\/b><\/td>\n \n \n \n \n \n \n \n \n \n \n \n \n \n \u00a0<\/td>\n<\/tr>\n \n \n \n Lease liabilities, net of current portion<\/td>\n \n \n \n \n \n \n \n Total liabilities<\/b><\/td>\n \n \n \n \n \n \n \n \n \n \n \n \n \n \u00a0<\/td>\n<\/tr>\n \n Stockholders\u2019 equity<\/b><\/td>\n \n \n \n \n \n \n \n \n \n \n \n \n \n \u00a0<\/td>\n<\/tr>\n \n Total liabilities and stockholders\u2019 equity<\/b><\/td>\n \n \n \n \n \n \n \n \n \n \n \n \n \n \u00a0<\/td>\n<\/tr>\n \n The 2022 balance sheet was derived from the 2022 annual financial statements included in the Form 10-K that was filed on February 24, 2023<\/b><\/td>\n<\/tr>\n \n \n \n \n \n \n \n \u00a0<\/td>\n<\/tr>\n<\/table>\n \n
\n Xencor Inc.<\/b><\/td>\n<\/tr>\n \n Condensed Statements of Comprehensive Income (Loss)<\/b><\/td>\n<\/tr>\n \n (in thousands, except share and per share data)<\/b><\/td>\n<\/tr>\n \n \n \n \n \n \n \n \u00a0<\/td>\n<\/tr>\n \n \n \n \n Three months ended March 31,<\/b><\/td>\n<\/tr>\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n (unaudited)<\/td>\n<\/tr>\n \n \n \n \n \n \n \n \u00a0<\/td>\n<\/tr>\n \n Revenues<\/b><\/td>\n $<\/td>\n \n \n \n $<\/td>\n \n \n \n \n \n \n \n \n \n \u00a0<\/td>\n<\/tr>\n \n Operating expenses:<\/b><\/td>\n \n \n \n \n <\/tr>\n \n \n Research and development<\/td>\n \n \n \n \n \n \n \n \n \n General and administrative<\/td>\n \n \n \n \n \n \n \n \n Total operating expenses<\/b><\/td>\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \u00a0<\/td>\n<\/tr>\n \n Income (loss) from operations<\/b><\/td>\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \u00a0<\/td>\n<\/tr>\n \n Other expense, net<\/td>\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \u00a0<\/td>\n<\/tr>\n \n Net income (loss)<\/b><\/td>\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \u00a0<\/td>\n<\/tr>\n \n Other comprehensive gain (loss)<\/td>\n \n \n \n \n <\/tr>\n \n \n Net unrealized gain (loss) on marketable debt securities<\/td>\n \n \n \n \n \n \n \n \n Comprehensive income (loss)<\/b><\/td>\n $<\/td>\n \n \n \n $<\/td>\n \n \n \n \n \n \n \n \n \n \u00a0<\/td>\n<\/tr>\n \n \n \n \n \n \n \n \u00a0<\/td>\n<\/tr>\n \n Net income (loss) per share:<\/b><\/td>\n \n \n \n \n <\/tr>\n \n Basic net income (loss) per share<\/b><\/td>\n $<\/td>\n \n \n \n $<\/td>\n \n \n \n Diluted net income (loss) per share<\/b><\/td>\n $<\/td>\n \n \n \n $<\/td>\n \n \n \n Weighted-average number of common shares used in net income (loss) per share applicable to common stockholders – basic<\/b><\/td>\n \n \n \n \n \n \n \n \n Weighted-average number of common shares used in net income (loss) per share applicable to common stockholders – diluted<\/b><\/td>\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \u00a0<\/td>\n<\/tr>\n \n \n \n \n \n \n \n \u00a0<\/td>\n<\/tr>\n<\/table>\n <\/p>\n
\n
Charles Liles
\n
cliles@xencor.com
\n<\/a>
(626) 737-8118<\/p>\n
\n
Jason I. Spark
\n
Evoke Canale
\n
jason.spark@evokegroup.com
\n<\/a>
(619) 849-6005<\/p>\n
![\"Logo\"](\"https:\/\/mms.businesswire.com\/media\/20230508005616\/en\/1222964\/3\/Xencor_logo_BW.jpg\"){kind=logo}
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