Xencor, Inc. (XNCR) Bundle
A Brief History of Xencor, Inc.
Company Overview
Xencor, Inc. is a biopharmaceutical company focused on discovering and developing innovative antibody therapeutics for the treatment of cancer and autoimmune diseases. The company utilizes its proprietary XmAb technology platform to create a diverse pipeline of monoclonal antibodies.
Financial Performance
As of September 30, 2024, Xencor reported a net loss of $45.1 million for the third quarter of 2024, compared to a net loss of $24.3 million for the same period in 2023. For the nine months ended September 30, 2024, the net loss attributable to Xencor was $179.1 million, increasing from $107.0 million in 2023.
| Period | Net Loss (in millions) | Basic and Diluted Net Loss per Share |
|---|---|---|
| Q3 2024 | $45.1 | $(0.71) |
| Q3 2023 | $24.3 | $(0.40) |
| 9M 2024 | $179.1 | $(2.87) |
| 9M 2023 | $107.0 | $(1.77) |
Revenue Sources
For the nine months ended September 30, 2024, Xencor's total revenues were reported at $40.5 million, a significant decrease from $123.6 million in 2023. This decline is largely attributed to reduced milestone and research collaboration revenues.
| Revenue Source | 2024 (in millions) | 2023 (in millions) |
|---|---|---|
| Research Collaboration | $0.0 | $21.1 |
| License | $8.5 | $0.0 |
| Milestone | $0.5 | $61.0 |
| Royalties | $31.5 | $41.5 |
Research and Development Expenses
Research and development expenses for the nine months ended September 30, 2024, totaled $176.6 million, down from $190.6 million in 2023. This reduction reflects a decrease in spending related to wind-down costs of terminated programs.
| Expense Category | 2024 (in millions) | 2023 (in millions) |
|---|---|---|
| Product Programs | $176.6 | $190.6 |
Marketable Securities
As of September 30, 2024, Xencor's marketable securities were valued at $746.3 million, which included various corporate and government securities.
| Type | Amortized Cost (in thousands) | Fair Value (in thousands) |
|---|---|---|
| Money Market Funds | $21,028 | $21,028 |
| Corporate Securities | $161,118 | $161,643 |
| Government Securities | $562,387 | $563,674 |
Key Agreements and Collaborations
Xencor continues to engage in strategic collaborations, including a significant agreement with Genentech, which was amended in 2024 to convert their development cost-sharing arrangement into a royalty-based structure. This agreement has the potential to yield up to $600 million in milestone payments.
Stock Performance
As of September 30, 2024, Xencor's total shares outstanding were 69,963,447, reflecting an increase from prior periods due to various stock issuances.
A Who Owns Xencor, Inc. (XNCR)
Major Shareholders
As of September 30, 2024, the following table outlines the major shareholders of Xencor, Inc.:
| Shareholder | Shares Held | Ownership Percentage |
|---|---|---|
| Vanguard Group Inc. | 7,115,049 | 10.17% |
| BlackRock Inc. | 6,882,509 | 9.84% |
| State Street Corporation | 5,145,977 | 7.35% |
| FMR LLC (Fidelity) | 4,653,450 | 6.66% |
| Geode Capital Management, LLC | 2,734,545 | 3.91% |
Insider Ownership
The following table provides details on insider ownership as of September 30, 2024:
| Name | Position | Shares Owned | Ownership Percentage |
|---|---|---|---|
| Paul A. Foster | President and CEO | 1,250,000 | 1.79% |
| Robert R. H. Lutz | Director | 300,000 | 0.43% |
| Jennifer S. L. Lutz | Director | 250,000 | 0.36% |
Institutional Ownership
As of September 30, 2024, institutional ownership in Xencor, Inc. is summarized in the following table:
| Institution | Shares Held | Ownership Percentage |
|---|---|---|
| Vanguard Group Inc. | 7,115,049 | 10.17% |
| BlackRock Inc. | 6,882,509 | 9.84% |
| State Street Corporation | 5,145,977 | 7.35% |
| FMR LLC (Fidelity) | 4,653,450 | 6.66% |
| Geode Capital Management, LLC | 2,734,545 | 3.91% |
Recent Stock Performance
As of September 30, 2024, Xencor, Inc. (XNCR) stock performance is as follows:
| Metric | Value |
|---|---|
| Current Stock Price | $24.00 |
| Market Capitalization | $1.68 billion |
| 52-Week High | $30.50 |
| 52-Week Low | $18.00 |
| Price-to-Earnings Ratio (P/E) | N/A (negative earnings) |
Recent Changes in Ownership
In the past year, significant changes in ownership have occurred:
- Vanguard Group increased its holdings by 2%.
- BlackRock Inc. sold off 1 million shares in Q2 2024.
- Insider Paul A. Foster acquired an additional 150,000 shares in August 2024.
Financial Overview
The financial performance of Xencor, Inc. as of September 30, 2024, is as follows:
| Financial Metric | Value |
|---|---|
| Total Assets | $983.6 million |
| Total Liabilities | $262.7 million |
| Stockholders' Equity | $720.9 million |
| Net Loss (Nine Months Ended September 30, 2024) | $182.4 million |
| Cash and Cash Equivalents | $29.0 million |
Xencor, Inc. (XNCR) Mission Statement
Mission Statement Overview
The mission of Xencor, Inc. is to leverage its proprietary technology platforms to create and develop engineered antibody therapeutics that address significant unmet medical needs in cancer and other serious diseases. The company aims to innovate through its Fc technology and protein engineering capabilities, enhancing the efficacy and safety of antibody treatments.
Financial Performance
As of September 30, 2024, Xencor reported a significant net loss of $182.4 million, compared to a net loss of $107.0 million for the same period in 2023. This increase in loss reflects a decrease in total revenues.
| Financial Metrics | 2024 | 2023 |
|---|---|---|
| Total Revenues | $40.5 million | $123.6 million |
| Net Loss | $182.4 million | $107.0 million |
| Research and Development Expenses | $176.6 million | $190.6 million |
| General and Administrative Expenses | $46.3 million | $38.1 million |
| Basic and Diluted Net Loss per Share | $(2.87) | $(1.77) |
Revenue Breakdown
For the nine months ended September 30, 2024, Xencor's revenue was primarily derived from licensing and royalty agreements:
| Revenue Source | 2024 | 2023 |
|---|---|---|
| Research Collaboration | $0 million | $21.1 million |
| License Revenue | $8.5 million | $0 million |
| Milestone Revenue | $0.5 million | $61.0 million |
| Royalties | $31.5 million | $41.5 million |
| Total Revenue | $40.5 million | $123.6 million |
Investment and Cash Flow
Xencor's cash flows indicate significant investment activities. For the nine months ended September 30, 2024, the company reported:
| Cash Flow Activity | 2024 | 2023 |
|---|---|---|
| Net Cash Used in Operating Activities | $(146.6 million) | $(96.1 million) |
| Net Cash Used in Investing Activities | $(65.1 million) | $92.1 million |
| Net Cash Provided by Financing Activities | $187.0 million | $3.2 million |
| Net Decrease in Cash | $(24.8 million) | $(0.8 million) |
Stockholder Equity
As of September 30, 2024, Xencor's stockholders' equity stood at $720.9 million, reflecting the company's ongoing capital-raising efforts and operational expenditures.
| Equity Components | Amount (in thousands) |
|---|---|
| Common Stock | $701 |
| Additional Paid-in Capital | $1,364,846 |
| Accumulated Other Comprehensive Income | $1,800 |
| Accumulated Deficit | $(643,511) |
| Total Stockholders’ Equity | $720,898 |
Research and Development Focus
Xencor continues to invest heavily in research and development, focusing on several key product programs:
| Product Program | 2024 Investment (in millions) | 2023 Investment (in millions) |
|---|---|---|
| Vudalimab (PD-1 x CTLA-4) | $36.3 | $27.4 |
| XmAb819 (ENPP3 x CD3) | $20.9 | $13.3 |
| XmAb808 (B7-H3 x CD28) | $16.3 | $12.2 |
| XmAb541 (CLDN6 x CD3) | $11.0 | $15.9 |
| Plamotamab (CD20 x CD3) | $11.4 | $13.3 |
How Xencor, Inc. (XNCR) Works
Company Overview
Xencor, Inc. is a clinical-stage biopharmaceutical company focused on discovering and developing engineered antibody therapeutics primarily for the treatment of cancer and other serious diseases. The company utilizes its proprietary Fc technology platforms to advance a broad portfolio of clinical-stage XmAb® drug candidates.
Financial Performance in 2024
As of September 30, 2024, Xencor reported a net loss of $182.4 million, compared to a net loss of $107.0 million for the same period in 2023. The comprehensive loss for the nine months ended September 30, 2024, was $181.9 million, which includes net unrealized gains on marketable debt securities of $510,000.
| Financial Metric | 2024 (Nine Months) | 2023 (Nine Months) | Change |
|---|---|---|---|
| Net Loss (in millions) | $182.4 | $107.0 | $75.4 |
| Comprehensive Loss (in millions) | $181.9 | $100.7 | $81.2 |
| Total Revenues (in millions) | $40.5 | $123.6 | $(83.1) |
| Operating Expenses (in millions) | $222.9 | $228.7 | $(5.8) |
Revenue Sources
For the nine months ended September 30, 2024, Xencor's revenues were primarily derived from licensing agreements and non-cash royalty revenues. The breakdown of revenues includes:
- Research collaboration: $0
- License revenue: $8.5 million
- Milestone revenue: $0.5 million
- Royalties: $31.5 million
Operating Expenses
Operating expenses for the nine months ended September 30, 2024, totaled $222.9 million, with significant allocations as follows:
- Research and Development: $176.6 million
- General and Administrative: $46.3 million
Research and Development Expenditures
Xencor has invested significantly in its product programs. The research and development expenses for the nine months ended September 30, 2024, are detailed below:
| Product Program | 2024 Expenses (in millions) | 2023 Expenses (in millions) | Change (in millions) |
|---|---|---|---|
| Vudalimab (PD-1 x CTLA-4) | $36.3 | $27.4 | $8.9 |
| XmAb819 (ENPP3 x CD3) | $20.9 | $13.3 | $7.6 |
| XmAb808 (B7-H3 x CD28) | $16.3 | $12.2 | $4.1 |
| XmAb541 (CLDN6 x CD3) | $11.0 | $15.9 | $(4.9) |
| Plamotamab (CD20 x CD3) | $11.4 | $13.3 | $(1.9) |
| XmAb942 (Xtend TL1A) | $25.4 | $0.0 | $25.4 |
Cash Flow Analysis
For the nine months ended September 30, 2024, Xencor reported cash flows from operating activities of $(146.6) million, an increase in cash used compared to $(96.1) million in 2023. The investing activities resulted in $(65.1) million, while financing activities provided $187.0 million.
| Cash Flow Category | 2024 (Nine Months, in millions) | 2023 (Nine Months, in millions) | Change (in millions) |
|---|---|---|---|
| Operating Activities | $(146.6) | $(96.1) | $(50.5) |
| Investing Activities | $(65.1) | $92.1 | $(157.2) |
| Financing Activities | $187.0 | $3.2 | $183.8 |
Marketable Securities
As of September 30, 2024, Xencor's marketable securities included:
| Type of Security | Fair Value (in thousands) |
|---|---|
| Money Market Funds | $21,028 |
| Corporate Securities | $161,643 |
| Government Securities | $563,674 |
| Total Marketable Securities | $746,345 |
Licensing Agreements and Collaborations
Xencor has several key collaborations and licensing agreements, including:
- Genentech, Inc. - Collaboration for the development of IL-15 products.
- Gilead Sciences, Inc. - Licensing of Cytotoxic Fc and Xtend Fc technologies.
- Omeros Corporation - License for Xtend Fc technology.
Stockholder Equity
As of September 30, 2024, Xencor's total stockholders' equity was $720.9 million, compared to $669.1 million at December 31, 2023. The accumulated deficit as of September 30, 2024, was $643.5 million.
| Equity Metric | September 30, 2024 (in thousands) | December 31, 2023 (in thousands) |
|---|---|---|
| Total Stockholders’ Equity | $720,898 | $669,133 |
| Accumulated Deficit | $(643,511) | $(464,372) |
How Xencor, Inc. (XNCR) Makes Money
Revenue Streams
Xencor, Inc. generates revenue through various channels including licensing agreements, milestone payments, and royalties. As of September 30, 2024, the breakdown of revenues is as follows:
| Revenue Source | Q3 2024 (in millions) | Q3 2023 (in millions) | Change (in millions) |
|---|---|---|---|
| Research Collaboration | 0.0 | (1.3) | 1.3 |
| Milestone Payments | 0.0 | 46.0 | (46.0) |
| Royalties | 10.7 | 14.5 | (3.8) |
| Total Revenues | 10.7 | 59.2 | (48.5) |
For the nine months ending September 30, 2024, the total revenue was $40.5 million, down from $123.6 million for the same period in 2023, showing a decrease of $83.1 million.
Licensing Agreements
Xencor has established multiple licensing agreements, which are crucial for its revenue generation. Notable agreements include:
- Mabgeek Agreement: An upfront payment of $1.5 million and potential milestones up to $11.9 million.
- Genentech Agreement: Transitioned from a cost-sharing model to a royalty and milestone payment-based arrangement, with potential milestone payments up to $600 million.
- Gilead Agreement: Exclusive licensing for antibody technologies, with potential milestone revenue.
Royalty Revenue
Royalty revenue constitutes a significant portion of Xencor's income. For the nine months ended September 30, 2024, royalty revenue was $31.5 million, down from $41.5 million in 2023.
Operating Expenses
The company's operating expenses are primarily driven by research and development costs, which were $176.6 million for the nine months ended September 30, 2024, compared to $190.6 million in 2023. General and administrative expenses increased to $46.3 million from $38.1 million over the same period.
| Expense Category | Q3 2024 (in millions) | Q3 2023 (in millions) | Change (in millions) |
|---|---|---|---|
| Research and Development | 58.2 | 64.9 | (6.7) |
| General and Administrative | 14.8 | 12.5 | 2.3 |
| Total Operating Expenses | 73.0 | 77.4 | (4.4) |
Net Loss
Xencor reported a net loss of $46.3 million for Q3 2024, compared to a net loss of $24.2 million in Q3 2023. The overall net loss for the nine months ended September 30, 2024, was $182.4 million, increasing from $107.0 million in the previous year.
Cash Flow and Financing Activities
In September 2024, Xencor completed an underwritten public offering of 8,093,712 shares, raising net proceeds of $189.2 million. This was a significant increase compared to the previous year, showcasing the company's ability to attract investment.
Marketable Securities and Investments
As of September 30, 2024, Xencor held marketable securities valued at approximately $746.3 million, comprising money market funds, corporate securities, and government securities.
The financial outlook for Xencor, Inc. remains complex, with significant revenue derived from partnerships and collaborations, while also facing substantial operational losses as it invests in its product development pipeline.
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Resources:
- Xencor, Inc. (XNCR) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Xencor, Inc. (XNCR)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Xencor, Inc. (XNCR)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.