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 second quarter ended June 30, 2024 and provided a review of recent business updates and internal clinical-stage programs.
“Xencor’s clinical focus is developing high-potential, first-in-class bispecific T-cell engagers and additional XmAb® candidates that leverage our differentiated technology platforms. The expanding opportunities for engineered antibodies, T-cell engagers and other bispecifics have encouraged us to advance a range of new XmAb candidates, and we plan to announce our next candidates for clinical development in the coming months,” said Bassil Dahiyat, Ph.D., president and chief executive officer of Xencor. “We remain enthusiastic by the progress of our clinical-stage T-cell engager programs and advancements within the platform to date in 2024. Our dose-escalation studies of XmAb819 (ENPP3 x CD3) in clear cell renal cell carcinoma and XmAb808 (B7-H3 x CD28) in advanced solid tumors remain on track to reach target dose levels by year end, and XmAb541 (CLDN6 x CD3) is off to a strong clinical start with initial study enrollment.”
Bispecific Antibody Programs Advancing in Internal Clinical Development
Recent Business Updates
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 Second Quarter and Six Months Ended June 30, 2024
Cash, cash equivalents and marketable debt securities totaled $585.0 million as of June 30, 2024, compared to $697.0 million as of December 31, 2023.
Revenues for the second quarter ended June 30, 2024 were $17.0 million, compared to $45.5 million for the same period in 2023. Revenues earned in the second quarter of 2024 were primarily non-cash royalty revenue from Alexion and MorphoSys/Incyte and licensing revenue from multiple licensees, compared to the same period in 2023, which were primarily research revenue from the second J&J collaboration, royalty revenue from Alexion and milestone revenue from Zenas. Revenues for the six months ended June 30, 2024 were $29.8 million, compared to $64.5 million for the same period in 2023. Revenue for the six-month period in 2024 were primarily non-cash royalty revenue from Alexion and MorphoSys/Incyte, compared to the same period in 2023, which were primarily research revenue from the second J&J collaboration, royalty revenue from Alexion and milestone revenue from J&J and Zenas.
Research and development (R&D) expenses for the second quarter ended June 30, 2024 were $61.5 million, compared to $60.1 million for the same period in 2023. R&D expenses for the six months ended June 30, 2024 were $118.4 million, compared to $125.6 million for the same period in 2023. Increased R&D spending for the second quarter of 2024 compared to 2023 and decreased R&D spending for the first six months of 2024 compared to 2023 are primarily due to increased spending on research and early-stage programs and decreased spending on XmAb104 (PD-1 x ICOS).
General and administrative (G&A) expenses for the second quarter ended June 30, 2024 were $17.7 million, compared to $11.5 million for the same period in 2023. G&A expenses for the six months ended June 30, 2024 were $31.5 million, compared to $25.6 million for the same period in 2023. Increased G&A spending for the second quarter and first six months of 2024 compared to 2023 is primarily due to increased spending on corporate activities, including stock-based compensation costs related to employees retiring in April 2024.
Other income (expense) for the second quarter ended June 30, 2024 was $(5.0) million, compared to $4.0 million for the same period in 2023. Other expense for the second quarter of 2024, compared to other income for the same period in 2023, is primarily due to unrealized and realized losses recognized from the change in fair value and the sale of equity investments. Other income (expense) for the six months ended June 30, 2024 was $(15.8) million, compared to $4.0 million for the same period in 2023. Other expense for the first six months of 2024, compared to other income for the same period in 2023, is primarily due to an impairment charge on an equity investment without a readily determinable fair value.
Non-cash, stock-based compensation expense for the six months ended June 30, 2024 was $28.6 million, compared to $26.2 million for the same period in 2023.
Net loss attributable to Xencor for the second quarter ended June 30, 2024 was $66.0 million, or $(1.07) on a fully diluted per share basis, compared to net loss of $22.0 million, or $(0.37) on a fully diluted per share basis, for the same period in 2023. For the six months ended June 30, 2024, net loss attributable to Xencor was $134.0 million, or $(2.18) on a fully diluted per share basis, compared to net loss of $82.7 million, or $(1.38) on a fully diluted per share basis, for the same period in 2023.
The total shares outstanding were 61,766,054 as of June 30, 2024, compared to 60,600,060 as of June 30, 2023.
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 expectations for clinical progress, planned presentations of clinical data, new XmAb candidates, 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) | |||||
June 30, | December 31, | ||||
|
2024 |
|
2023 |
||
(Unaudited) | |||||
Cash, cash equivalents and marketable debt securities - current |
$ |
480,140 |
$ |
551,515 |
|
Other current assets |
|
74,330 |
|
71,645 |
|
Marketable debt securities - long term |
|
104,862 |
|
145,512 |
|
Other long-term assets |
|
166,835 |
|
184,020 |
|
Total assets |
$ |
826,167 |
$ |
952,692 |
|
Total current liabilities |
|
80,076 |
|
84,709 |
|
Deferred income - long term |
|
104,081 |
|
125,183 |
|
Other long term liabilities |
|
79,469 |
|
73,667 |
|
Total liabilities |
|
263,626 |
|
283,559 |
|
Total stockholders' equity |
|
562,541 |
|
669,133 |
|
Total liabilities and stockholders’ equity |
$ |
826,167 |
$ |
952,692 |
Xencor, Inc. | ||||||||||||
Consolidated Statements of Loss and Comprehensive Loss | ||||||||||||
(in thousands, except share and per share data) | ||||||||||||
Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||||
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
|
(Unaudited) | ||||||||||||
Revenue |
$ |
16,960 |
|
$ |
45,523 |
|
$ |
29,765 |
|
$ |
64,485 |
|
Operating expenses | ||||||||||||
Research and development |
|
61,531 |
|
|
60,060 |
|
|
118,404 |
|
|
125,612 |
|
General and administrative |
|
17,746 |
|
|
11,460 |
|
|
31,533 |
|
|
25,613 |
|
Total operating expenses |
|
79,277 |
|
|
71,520 |
|
|
149,937 |
|
|
151,225 |
|
Loss from operations |
|
(62,317 |
) |
|
(25,997 |
) |
|
(120,172 |
) |
|
(86,740 |
) |
Other income (expense), net |
|
(4,974 |
) |
|
4,043 |
|
|
(15,828 |
) |
|
4,023 |
|
Loss before income tax |
|
(67,291 |
) |
|
(21,954 |
) |
|
(136,000 |
) |
|
(82,717 |
) |
Income tax expense |
|
117 |
|
|
— |
|
|
117 |
|
|
— |
|
Net loss |
|
(67,408 |
) |
|
(21,954 |
) |
|
(136,117 |
) |
|
(82,717 |
) |
Net loss attributable to non-controlling interest |
|
(1,445 |
) |
|
— |
|
|
(2,121 |
) |
|
— |
|
Net loss attributable to Xencor, Inc. |
|
(65,963 |
) |
|
(21,954 |
) |
|
(133,996 |
) |
|
(82,717 |
) |
Other comprehensive income (loss) | ||||||||||||
Net unrealized gain (loss) on marketable debt securities |
|
(498 |
) |
|
1,765 |
|
|
(1,942 |
) |
|
5,093 |
|
Comprehensive loss attributable to Xencor, Inc. |
$ |
(66,461 |
) |
$ |
(20,189 |
) |
$ |
(135,938 |
) |
$ |
(77,624 |
) |
Net loss per common share attributable to Xencor, Inc.: | ||||||||||||
Basic and Diluted |
$ |
(1.07 |
) |
$ |
(0.37 |
) |
$ |
(2.18 |
) |
$ |
(1.38 |
) |
Weighted average common shares used to compute net loss per share attributable to Xencor, Inc. | ||||||||||||
Basic and Diluted |
|
61,676,444 |
|
|
59,807,558 |
|
|
61,444,384 |
|
|
59,922,784 |
|
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